Cisco (NASDAQ:CSCO): Cisco has agreed to acquire SourceFire (NASDAQ:FIRE) for $2.7 billion, or $76 per share, a 29 percent premium to the stock’s closing price on Monday. Cisco will likely use its purchase to increase its exposure to the intrusion prevention system industry, and to develop end-to-end security platforms that combine traditional firewall tools with more software-centric offerings providing application and service-level security and a deeper understanding of user activity.
Travelers Companies Inc. (NYSE:TRV): Despite beats on both the earnings per share front and revenues, Travelers shares are sliding nearly 3 percent. Net income of $925 million represents a remarkable 85 percent year-over-year swell, largely due to lower catastrophe losses and continued improvement in underwriting margins. The company has an adjusted book value per share of $62.12, up from $59.09 a year ago.
RadioShack (NYSE:RSH): Earnings per share of -53 cents fell 29 cents below projections, although revenue of $845 million beat by $30.44. Nonetheless, shares are down over 4 percent as the net loss widens to $53.1 million from $21 million as a result of the company’s use of discounts to shed ”unproductive” inventory. RadioShack will be partnering with AlixPartners and investment bank Peter J. Solomon to mount a turnaround attempt, the effects of which won’t be seen for some time.
Lockheed Martin (NYSE:LMT): Lockheed’s earnings per share of $2.64 beat projections by 44 cents, while revenues of $11.4 billion also surpassed expectations. Net profit rose 10 percent to $859 million despite revenues falling 4 percent overall. The company raised its full-year guidance $9.20 to $9.50 from a previous $8.80 to $9.10, compared to the consensus of $9.01. Chief Financial Officer Bruce Tanner says that the sequester has not impacted the company as much as previously anticipated, and the firm is in talks to close deals for two runs of the F-35 joint strike fighter.