Pfizer, Merck: Tuesday's Headlines

Pfizer and Merck earnings are in focus early Tuesday.
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) -- Here are the top stock market headlines for the morning of Tuesday, May 4, 2010.

Tuesday's Earnings Roundup

  • Pfizer (PFE) - Get Report posted a first-quarter profit of 60 cents a share, above the Thomson Reuters consensus of 53 cents a share. Revenue of $16.75 billion was also above Wall Street's target. Looking ahead, Pfizer offered in-line earnings and revenue guidance for 2010
  • Merck (MRK) - Get Report said it had first-quarter adjusted earnings of 83 cents a share on revenue of $11.42 billion, compared with analysts' estimates for a profit of 75 cents a share on revenue of $11.18 billion. Merck offered in-line earnings guidance for 2010.
  • Archer-Daniels Midland (ADM) - Get Report notched a third-quarter profit of 65 cents a share, although that was below the 71-cent-a-share analyst consensus. Revenue was up 2% from a year ago to $15.14 billion, below the $15.65 billion consensus.
  • UBS (UBS) - Get Report said first-quarter earnings were 2.2 billion Swiss francs ($2.02 billion), a swing from a year-earlier loss of 1.98 billion francs and above analysts' consensus view. UBS said net new money outflows in the quarter in its wealth management division were 8.2 billion francs compared with 32.9 billion francs in the fourth quarter of 2009.
  • CVS Caremark (CVS) - Get Report reported a first-quarter profit of 60 cents a share, 2 cents above the Thomson Reuters average consensus, while revenue of $23.76 billion was below the average analyst target of $24.12 billion. CVS offered in-line earnings guidance for 2010.
  • Mastercard (MA) - Get Report said it had first-quarter earnings of $3.46 a share on revenue of $1.31 billion, above the consensus target of $3.14 a share on revenue of $1.27 billion.
  • Sirius XM (SIRI) - Get Report said it had an adjusted profit of a penny a share, compared to the Thomson Reuters average estimate for a break-even quarter. Revenue was up from a year ago to $670.6 million, although that fell short of the $671.3 million consensus. Sirius XM reaffirmed its full-year guidance, saying it expects revenue of over $2.7 billion, more than 500,000 net subscriber additions and positive free cash flow.

Tuesday's Early Headlines

  • Senate to Begin Vote on Financial Reform Bill -- The U.S. Senate will begin voting Tuesday on the Financial Reform package, and Reuters reports that Democratic leaders had not yet determined as of late Monday whether more than 100 circulating amendments will need 50 or 60 votes to pass. A spokesman for Senate Democratic Leader Harry Reid told Reuters that votes would be handled on a case-by-case basis for the time being.
  • Interactive Data Agrees to $3.4 Billion Buyout -- Interactive Data (IDC) agreed to be acquired by private-equity groups Silver Lake and Warburg Pincus in a transaction valued at $3.4 billion. Under the agreement, Interactive Data's stockholders will receive $33.86 in cash for each share of Interactive Data common stock they own. This represents a premium of about 32.9% over the closing share price on Jan. 14, the last trading day before the company announced it was conducting a review of strategic alternatives, Interactive Data said.
  • Times Square Bomb Suspect Arrested -- Authorities said they have arrested Faisal Shahzad, a suspect in the failed car bombing in Times Square Saturday. Agents of the Federal Bureau of Investigation and detectives of the New York City Police Department took Shahzad, a 30-year-old resident of Connecticut, into custody while trying to get on a flight to Dubai late Monday.
  • Pending Home Sales, Factory Orders Data Due -- Separate reports on factory orders and pending home sales will be released at 10 a.m. ET. Economists expect the latest factory orders report to show a 0.2% decline in March after a 0.6% rise in February. Meanwhile, the National Association of Realtors will likely say that pending home sales rose 5% in March, according to a survey of analysts, which follows an 8.2% increase in February.

-- Written by Robert Holmes in Boston


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