A quick look at stocks in the news this morning.
International Business Machines
International Business Machines (IBM) reported adjusted EPS of $3.62, edging out analysts’ estimates for $3.61 per share. Revenues missed estimates at $24.7, missing estimates by about $700 million. The revenue miss lead a number of analysts to cut their ratings and price targets on the stock.
Intel (INTC) reported adjusted EPS of 60 cents, topping estimates for 50 cents per share. Revenues came in at $13.5 billion, topping estimates for $13.22 billion. The company’s fourth quarter guidance disappointed though. The chipmaker now expects to revenue of $13.6 billion, below estimates for $13.7 billion. Margins are expected to contract to 57%, compared to an average of 64% over the last three years. Weak revenues and lower margins almost certainly point to lower earnings in the fourth quarter.
ASML Holding (ASML) made a $2.6 billion offer for Cymer (CYMI). AMSL said the acquisition will help it win the race to develop new technology.
Bank of America
Bank of America (BAC) reported flat earnings for the quarter on revenue of $22.53 billion. Analysts had expected a loss of 7 cents per share on revenue of $21.73 billion. Earnings were hit by a $2.4 billion settlement relating to claims the bank hid information from shareholders as part of its acquisition of Merrill Lynch. The current quarter’s earnings were also impacted by a tax charge in the U.K. and an accounting charge related to the value of its debt.
Nike (NKE) announced this morning that it was ending its contract with tarnished former cycling star Lance Armstrong. Nike cited evidence that the Armstrong participated in doping and mislead the company for more than a decade. Nike said it will continue to support the Livestrong anti-cancer foundation that Armstrong founded. Armstrong announce this morning that he will step down as the chairman of the charity.
Nike also said this morning that it has signed a deal with the International Olympic Committee to provide uniforms and products to IOC members and staff. The agreement begins in January and ends in 2016.
Homebuilders like Toll Brothers (TOL), Lennar (LEN) and Pulte Group (PHM) are likely to get a boost today after data released this morning showed housing starts in September were 872,000, compared to forecasts for 768,000 and a newly revised figure of 758,000 a month earlier. Building permits came in at 894,000 for the month, topping estimates for 815,000.