Goldman Sachs: Tuesday's Headlines

Earnings from Goldman Sachs, IBM, Johnson & Johnson, and Coca-Cola, among others, were in focus Tuesday.
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NEW YORK (

TheStreet

) -- Here are the top stock market headlines for the morning of Tuesday, April 20, 2010.

Tuesday's Earnings Roundup

  • Goldman Sachs (GS) - Get Report reported a first-quarter profit of $5.59 a share, which blew past the Thomson Reuters average estimate of $4.01 a share. Revenue was up 35.5% from a year ago to $12.78 billion, also better than forecasts. Investment banking revenue climbed 44% from a year ago to $1.18 billion, although that was down 28% sequentially. Revenue from equity and debt underwriting was "significantly higher," the bank said.
  • Johnson & Johnson (JNJ) - Get Report posted a first-quarter adjusted profit of $1.29 a share, which was better than the average analyst estimate of $1.27 a share. Sales were up 4% from a year ago to $15.63 billion, in line with forecasts. However, J&J lowered guidance for the 2010 citing foreign currency and exchange rate changes. The company now expects earnings in a range of $4.80 to $4.90 a share, down from the previous range of $4.85 to $4.95 a share. Analysts are looking for a full-year profit of $4.90 a share, according to Thomson Reuters.
  • America's Most Popular Companies (Forbes)
  • Coca-Cola (KO) - Get Report said it had a first-quarter adjusted profit of 80 cents a share, which was a nickel better than the Thomson Reuters average estimate. However, revenue of $7.53 billion was below the consensus target of $7.72 billion, which sent shares lower in premarket trading.
  • Delta Air Lines (DAL) - Get Report notched a first-quarter loss of 23 cents a share, matching the Thomson Reuters average estimate. Revenue rose 2.5% from a year ago to $6.9 billion, which was slightly below the $7 billion consensus target.
  • UnitedHealth Group (UNH) - Get Report said it had first-quarter earnings of $1.03 a share, well above the Thomson Reuters average estimate of 69 cents a share, while revenue of $23.2 billion was above the $22.7 billion consensus. Looking ahead, UnitedHealth said it expects a full-year profit of $3.15 to $3.35 a share on revenue of $92 billion, which is above the Thomson Reuters average estimate for earnings of $3.08 a share on revenue of $90.8 billion.
  • Regions Financial (RF) - Get Report said it swung to a loss of 21 cents a share in the first quarter, although that was narrower than the 27-cent-a-share loss Wall Street expected. Regions said non-performing assets, excluding loans held for sale, increased 5.4%, marking the third consecutive quarter of moderation in the overall growth rate.
  • Eaton (ETN) - Get Report swung to a first-quarter adjusted profit of $1.05 a share on revenue of $3.1 billion, compared with the Thomson Reuters average estimate of 83 cents a share on revenue of $3.1 billion. Eaton also offered upside earnings guidance for the second quarter and the company raised its full-year earnings guidance above the Thomson Reuters average estimate.
  • IBM (IBM) - Get Report reported a first-quarter profit of $1.97 a share, which was better than the Thomson Reuters average estimate of $1.93 a share. Revenue rose 5.3% to $22.86 billion, also better than estimates. IBM raised its full-year earnings guidance to $11.20 a share from $11 previously. Analysts are expecting a full-year profit of $11.12 a share.

Tuesday's Early Headlines

  • Goldman Being Probed By U.K. Regulator -- Goldman Sachs' London subsidiary will be investigated by the Financial Services Authority, Britain's financial regulator, after the U.S. filed a civil complaint against the Wall Street firm. The FSA said Tuesday it would be working closely with the Securities and Exchange Commission in the U.S. The FSA is likely to focus on the Royal Bank of Scotland (RBS) - Get Report, which paid $841 million to Goldman Sachs in 2007 to unwind its position in a fund acquired in the takeover of Dutch Bank ABN Amro, The Associated Press reports.
  • AIG Mulls Claim Against Goldman: Report -- American International Group (AIG) - Get Report is considering potential claims against Goldman Sachs and other Wall Street firms over losses incurred on $6 billion of insurance deals on mortgage-backed securities, The Wall Street Journal reported late Monday, citing a person familiar with the matter.
  • Google Hacked Through Computer Code -- Google's (GOOG) - Get Report systems were hacked by attackers last year through a computer code for the software that authenticates users of Google email, calendar and other online programs, The Wall Street Journal reports, citing a person familiar with the matter. Attackers gained access to Google's computer code by compromising a workstation used by a Google engineer, the person said. However, the nature of attacks and the perpetrators behind it remain unclear.
  • Greece May Need 80 Billion Euros: ECB Official -- European Central Bank Governing Council member Axel Weber told German politicians that Greece may require assistance of up to 80 billion euros ($111.8 billion) in the coming years, Reuters reports. Weber made the comments to members of Germany's Free Democrats party on Monday, people at the event told Reuters. German newspaper Bild said Weber warned that the total amount of aid Greece requires may not be known until later, the report said.

-- Written by Robert Holmes in Boston

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