Juniper, BofA, Ford Motor, Solutia Trade Highly Active Shares Jan 27th
Juniper Networks, Inc. (NYSE:JNPR): Juniper (NYSE:JNPR), which develops network infrastructure products, reported Q4 EPS of 28c, versus analysts’ consensus estimate of 28c. However, Juniper’s Q4 revenue came in slightly lower than expected, and the company provided Q1 adjusted EPS guidance of 11c-14c, versus the consensus estimate of 26c. The EPS guidance excludes several items, including share-based compensation expenses, acquisition related charges, restructuring charges, and impairment charges. Juniper also provided lower than expected Q1 revenue guidance. “The December quarter was an atypical and unexpectedly weak finish to the year, with reduced spending by some of our largest customers,” said Juniper CFO Robyn Denholm. “While long-term industry fundamentals remain strong, we expect the near-term environment to remain challenging,” Denhiolm added. The company added that its Q1 guidance reflects the potential effects of near-term macro economic uncertainty on customer demand. In mid-morning trading, Juniper slumped $2.00, or 8.94%, to $20.27. Meanwhile, Cisco (NASDAQ:CSCO), which competes with Juniper, declined 1.97% to $19.44.
Bank of America Corp (NYSE:BAC): The European Commission will tell Treasury Secretary Timothy Geithner that the so-called “Volcker rule,” which would restrict U.S. banks from making bets with their own capital, could increase funding costs for the region’s governments and worsen its crisis, according to an interview with Michel Barnier, the European commissioner for the internal market, reported The Wall Street Journal.
Ford Motor Company (NYSE:F): Sees 675K units production in North America, 100K in South America, 410K in Europe, and 215K in Asia Pacific/Africa. Guidance from slides for Q4 earnings conference call.
Solutia Inc. (NYSE:SOA): Eastman expects the transaction to be immediately accretive to earnings, excluding acquisition-related costs and charges. Eastman has identified annual cost synergies of approximately $100M that are expected to be achieved by year-end 2013. Further, Eastman expects to realize significant tax benefits from Solutia’s historical net operating losses and other tax attributes that are expected to contribute to free cash flow of approximately $1B through 2013. The transaction, which was approved by the Boards of Directors of both companies, remains subject to approval by Solutia’s shareholders and receipt of required regulatory approvals as well as other customary closing conditions. The transaction is expected to close in mid-2012.
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