Markets & Finance

Movers: Cisco Systems, Washington Mutual, GM, Garmin


Wednesday's stocks in the news

From Standard & Poor's Equity ResearchCisco Systems (CSCO) posted EPS of 35 cents a share, vs. 26 cents a year ago. On a non-GAAP basis, EPS was 40 cents. Revenue rose 16.7% to $9.6 billion - above the company's forecast of $9.45 billion to $9.55 billion. Analysts expected the company to report EPS of 36 cents on revenue of $9.54 billion, according to Thomson Financial. The shares fell in after-hours trading.

Shares of Washington Mutual (WM), Fannie Mae (FNM), and Freddie Mac (FRE) lost ground after New York Attorney General Andrew Cuomo subpoenaed investment banks related to his ongoing probe into U.S. mortgage loans. Cuomo, speaking at a press conference announcing subpoenas to FNM and FRE, said he has concerns about mortgage loans that WM has sold to these companies. Separately, earlier today WM said it expects industry-wide mortgage originations to total $1.5 trillion in 2008, lower than consensus forecast of $2 trillion. WM said it will maintain its dividend but will review its payout as the fourth quarter progresses.

General Motors (GM) posts $2.80 third quarter adjusted loss per share, vs. $0.88 EPS a year ago, on 10% revenue decline. It had a significant decline in net income at GMAC, increased corporate expense related to legacy cost, forex, and absence of various 2006 tax benefits. Third quarter 2007 adjusted loss excludes non-cash charge of $38.6 billion due to a valuation allowance against deferred tax assets related to operations in U.S., Canada, and Germany. Including the impact of the non-cash charge, third quarter loss was $68.85 per share.

Garmin (GRMN) shares were lower as Amsterdam-based TomTom NV sweetened its bid for digital map maker Tele Atlas NV. New bid values Tele Atlas at 2.9 bln euros, 41% higher than TomTom's earlier bid in July, and topping the 24.50-euros-per-share bid made by GRMN. S&P keeps buy.

Weight Watchers International (WTW) posts $0.62, vs. $0.52 a year ago, third quarter EPS on 19% revenue rise. It narrows 2007 EPS guidance to $2.43-$2.47 range.

Time Warner (TWX) posts $0.24, vs. $0.33 a year ago, third quarter EPS before discontinued operations and cumulative effect of accounting change despite 8.6% revenue rise. It continues to expect 2007 EPS before discontinued opertations and cumulative effect of accounting change of about $1.07.

Dollar Thrifty Automotive (DTG) posts $0.48, vs. $0.24 a year ago, third quarter EPS on 7.7% revenue rise. It cuts 2007 EPS guidance to $1.75-$1.85 from $2.00-$2.40. It says the reduction includes slower revenue growth than previously forecasted, a $0.15 impact from delay in vehicle shipments, $0.08 write-down of obsolete software taken in the third quarter.

Sara Lee (SLE) posts $0.28, vs. $0.34 a year ago, first quarter EPS from continuing operations despite 8.3% sales rise. Due to forex, it raises fiscal year 2008 EPS from continuing operations guidance to $1.00-$1.06, which includes $0.18 of contingent proceeds received in the first quarter from the sale of its tobacco business in fiscal year 1999.

Fluor (FLR) posts lower-than-expected $1.02, vs. $0.31 a year ago, third quarter EPS on 22% revenue rise. It narrows 2007 EPS guidance range to $4.10-$4.20. It sees 2008 EPS in range of $4.90-$5.30.

Harrah's Entertainment (HET) posts $1.16, vs. $0.96 a year ago, third quarter EPS from continuing operations on 13% revenue rise.

Acco Brands (ABD) posts $0.16, vs. $0.33 a year ago, third quarter EPS on flat revenue.

Devon Energy (DVN) posts $1.63, vs. $1.57 a year ago, third quarter EPS on 11% revenue rise. It says it has decided not to proceed at this time with its plans to form a publicly-traded master limited partnership (MLP). DVN cited changing financial market conditions for MLPs as the principal reason for the decision.

BMC Software (BMC) posts $0.48 (non-GAAP), vs. $0.28 a year ago, second quarter EPS on 8.8% revenue rise. It sees fiscal year 2008 non-GAAP EPS of $1.78-$1.86 on more than 6% revenue growth.

Foster Wheeler (FWLT) posts $1.78, vs. $1.07 a year ago, third quarter EPS on 3.4% revenue rise. It posts $179 million third quarter EBITDA vs. $95.1 million a year ago. It sets 2-for-1 stock split.

PeopleSupport (PSPT) posts $0.27, vs. $0.18 a year ago, third quarter GAAP EPS on 23% revenue rise. It sees $0.28-$0.29 fourth quarter GAAP EPS on revenue of $35.7-$36.5 million, $0.84-$0.85 2007 EPS on revenue of $140.6-$141.4 million.

GOL Linhas Aereass Inteligentes S.A. (GOL) posts $0.12, vs. $0.45 a year ago, third quarter EPADS despite 20% revenue rise. It cuts R$1.60-R$2.10 2007 EPS guidance to R$1.40-R$1.80, reflecting the impact of lower loads and yields.

CBL & Associates Properties (CBL) posts $0.26, vs. $0.22 a year ago, third quarter EPS on 2.5% higher revenue. However, it also posts $0.76 vs. $0.78 third quarter FFO. It sees $3.35-$3.41 2007 FFO, $1.19-$1.25 EPS. Also says its board approved raising CBL's quarterly dividend by 7.9% to $0.545 per share, payable Jan. 15 to holders of record Dec. 28. JP Morgan downgrades to neutral from overweight..

Turbochef Technologies (OVEN) posts $0.06 third quarter loss per share, vs. $0.37 loss a year ago, on sharp revenue rise.


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