Monday headlines include: a dismal quarter from IBM, Halliburton and Valeant beating estimates, Sears raising $625 million and Yahoo planning to announce cost cuts.
International Business Machines
Tech giant International Business Machines (IBM) said Monday that it earned $3.68 per share on an adjusted basis in the most-recent quarter on revenue of $22.4 billion. Analysts had expected the company to earn $4.32 per share on $23.39 billion in revenue. The company also announced that it will pay Globalfoundries to take its chipmaking business. IBM will pay $1.5 billion to Global foundries over the next three years, but also took a $4.7 billion charge in the third quarter in connection with the business. Globalfoundries will also become the exclusive provider for server processors to IBM over the next 10 years.
Oil field services firm Halliburton (HAL) said Monday that it earned $1.41 per share in the third quarter, or $1.19 per share on an adjusted basis. Revenue was $8.7 billion. Analysts had expected the company to earn $1.10 per share on $8.5 billion in revenue.
Struggling retailer Sears Holdings (SHLD) is raising $625 million through a rights offering of $625 million in senior unsecured notes. The offering will allow shareholders, including chairman Edward Lampert's ESL Holdings to buy both the debt and warrants to buy shares of common stock. The company also said it reached a leasing deal with European fashion retailer Primark.
Drugmaker Valeant Pharmaceuticals (VRX) said Monday that it earned $2.11 per share in the third quarter, compared to estimates for $1.99 per share. For the full year, the company said it now expects to earn $8.22 per share to $8.32 per share, compared to a previous forecast for $7.90 per share to $8.10 per share.
Internet portal Yahoo (YHOO) is expected to make announcements on Tuesday of cost cutting efforts as well as details on how it is evaluating potential acquisitions. The company is facing increasing scrutiny from activist investors as its revenue growth has been sluggish and the company is flush with cash from the Alibaba IPO.