Earnings - 16th July 2009

4:11PM IBM beats by $0.30; guides FY09 EPS above consensus (IBM) 110.64 +3.42 : Reports Q2 (Jun) earnings of $2.32 per share, $0.30 better than the First Call consensus of $2.02; revenues fell 13.3% year/year to $23.25 bln vs the $23.59 bln consensus. Gross profit margin was 45.5% in Q2 compared with 43.2% in 2Q08, led by improving margins in services and software. Co issues upside guidance for FY09, sees EPS of "at least $9.70" vs. $9.15 consensus and vs prior guidance of $9.20"... We are optimistic about how IBM is positioned to make the most of current growth opportunities as well as those that emerge as the economy recovers. We are well ahead of pace for our 2010 roadmap of $10 to $11 per share."

4:06PM Cubist Pharma beats by $0.12, reports revs in-line, reaffirms FY09 US Cubicin revs (CBST) 17.31 +0.26 : Reports Q2 (Jun) earnings of $0.40 per share, $0.12 better than the First Call consensus of $0.28; revenues rose 28.5% year/year to $130.8 mln vs the $131.9 mln consensus. Cubicin sales of $126.1 mln vs. $122.0 mln First Call Consensus. Cubist Pharma reaffirms 2009 CUBICIN net U.S. revenue to be $520-540 mln vs $532.1 mln consensus. Ecallantide: Cubist is continuing enrollment in the CONSERV(TM)-1 dose-ranging trial in the US and remains confident that the trial will fully enroll patients by the end of the year. The key objective is to generate data to support the selection of the optimum ecallantide dose for Phase 3. Co says, "In a time of continued economic uncertainty, Cubist has again delivered a quarter of strong performance, and made further progress against our strategic goals," said Michael Bonney, President and CEO of Cubist. "CUBICIN has now been used in the treatment of more than an estimated 750,000 patients with serious and sometimes life-threatening infections. Our continued success with CUBICIN also is enabling us to progress four clinical candidates addressing unmet medical need for seriously ill patients."

4:06PM Google beats by $0.27, reports revs in-line (GOOG) 442.60 +4.43 : Reports Q2 (Jun) earnings of $5.36 per share, ex items, $0.27 better than the First Call consensus of $5.09; revenues (after deducting traffic acquisition costs ) rose 4.5% year/year to $4.07 bln vs the $4.06 bln consensus. International Revenues - Revenues from outside of the United States totaled $2.91 bln, representing 53% of total revenues in the second quarter of 2009, compared to 52% in the first quarter of 2009 and second quarter of 2008. Paid Clicks - Aggregate paid clicks, which include clicks related to ads served on Google sites and the sites of our AdSense partners, increased approximately 15% over the second quarter of 2008 and decreased approximately 2% over the first quarter of 2009. Operating Income - GAAP operating income in the second quarter of 2009 was $1.87 bln, or 34% of revenues. This compares to GAAP operating income of $1.58 bln, or 29% of revenues, in the second quarter of 2008. Non-GAAP operating income in the second quarter of 2009 was $2.17 bln, or 39% of revenues. This compares to non-GAAP operating income of $1.85 bln, or 34% of revenues, in the second quarter of 2008.

7:36AM Fairchild Semi beats by $0.08, beats on revs; guides Q3 revs above consensus (FCS) 8.69 : Reports Q2 (Jun) loss of $0.03 per share, excluding non-recurring items, $0.08 better than the First Call consensus of ($0.11); revenues fell 33.6% year/year to $277.9 mln vs the $264.8 mln consensus. Co issues upside guidance for Q3, sees Q3 revs of $300-325 mln vs. $288.89 mln consensus. "We delivered strong sequential sales and margin growth even as we further improved our inventory position in the second quarter. Distribution sell-through was better than expected which helped us to again reduce channel inventory while still posting sales higher than our original expectations entering the quarter. Order rates improved throughout the quarter across a broad range of end markets enabling us to significantly increase our backlog position from a quarter ago. Overall product pricing was down about three percent sequentially which is slightly weaker than prior quarters, but we believe the trend is now moderating as order rates improve. We maintained lead times within a stable range of five to six weeks during the quarter. Our scheduled backlog for third quarter shipments is currently about $300 million which is roughly $50 million higher than this point a quarter ago. Included in this amount is approximately $25 million of backlog that we booked in the first two and a half weeks of this quarter. Assuming we continue to record positive backlog fill consistent with the current order patterns, we believe sales in the range of $300 to $325 million are possible for the third quarter. For this range of revenue, we anticipate adjusted gross margin to be between 25-27%. Adjusted gross margin for Q2 was 24.8%, up nearly 10 percentage points sequentially and 4 percentage points lower than in the second quarter of 2008."

7:17AM Biogen Idec beats by $0.07, beats on revs; guides FY09 EPS above consensus (BIIB) 46.67 : Reports Q2 (Jun) earnings of $0.75 per share, excluding non-recurring items, $0.07 better than the First Call consensus of $0.68; revenues rose 10.0% year/year to $1.09 bln vs the $1.07 bln consensus. Co issues upside guidance for FY09 (Dec), sees EPS above $3.85 vs. $3.82 First Call consensus; sees rev growth "in the high single-digits" year over year. Capital Expenditures are expected to be in the range of $180-$200 million. BIIB Q2 Drug Sales: Avonex $591 mln vs. $570.2 mln First Call Consensus; Rituxan $276 mln vs. $289.1 mln First Call Consensus; Tysabri $188 mln vs. $188 mln First Call Consensus.

7:05AM Baxter beats by $0.02, reports revs in-line; guides Q3 EPS in-line; slightly increases FY09 EPS guidance, reaffirms FY09 revs guidance (BAX) 53.09 : Reports Q2 (Jun) earnings of $0.96 per share, $0.02 better than the First Call consensus of $0.94; revenues fell 2.1% year/year to $3.12 bln vs the $3.12 bln consensus. Co issues in-line guidance for Q3, sees EPS of $0.95-0.97 vs. $0.96 consensus, sees Q3 sales of ~7-8%. Coraises guidance for FY09 EPS, sees EPS of $3.76-3.80, up from $3.72-3.78, vs. $3.77 consensus; continues to expect sales growth, excluding the impact of foreign currency, to be ~7 to 8% (which calc to ~$13.2-13.3 bln vs. $12.45 bln consensus.

7:03AM Meridian Bioscience beats by $0.02, beats on revs; reaffirms FY09 EPS guidance, revs guidance (VIVO) 22.90 : Reports Q3 (Jun) earnings of $0.21 per share,$0.02 better than the First Call consensus of $0.19; revenues rose 15.4% year/year to $38.2 mln vs the $35 mln consensus. Co reaffirms guidance for FY09, sees EPS of $0.77-0.81 vs. $0.78 consensus; sees FY09 revs of $140-144 mln vs. $141.43 mln consensus. Co says, "Meridian's third quarter performance improved in many areas highlighted by heightened non-seasonal demand for rapid flu tests due primarily to the swine flu pandemic. As a result, USDx sales increased by 28% with approximately two-thirds of the 28% growth rate coming from our Upper Respiratory product lines. The balance of FY 2009 is expected to be strong, even without considering unforeseen upsides from a more robust influenza pre-season. Our guidance for FY 2010 will be issued in September."

6:39AM JP Morgan Chase beats by $0.24, beats on revs (JPM) 36.26 : Reports Q2 (Jun) earnings of $0.28 per share, includes TARP charge of $0.27, $0.24 better than the First Call consensus of $0.04; revenues rose 2.9% year/year to $27.71 bln vs the $25.89 bln consensus... Average mortgage loans were $145.2 billion, up by $90.4 billion, due to the Washington Mutual transaction. Mortgage loan originations were $41.1 billion, down 27% from the prior year and up 9% from the prior quarter. "Of particular note, the Investment Bank reported record overall revenue for the first half of the year, which included record fees and Fixed Income Markets revenue for this quarter. In addition, Commercial Banking, Asset Management, Treasury & Securities Services and Retail Banking each delivered another quarter of solid performance. These results were negatively affected by the continued high levels of credit costs in Consumer Lending and Card Services, which we expect will remain elevated for the foreseeable future. Even after further strengthening our credit reserves by $2 bln to $30 bln and repaying the $25 bln of TARP capital, the firm ended the quarter with a very strong Tier 1 Capital ratio of 9.7% and a Tier 1 Common ratio of 7.7%. With these additions to reserves, we now have an extremely high loan loss coverage ratio of 5%. We continued to lend, extending approximately $150 billion in new credit to consumer and corporate customers. We approved 138,000 trial mortgage modifications, bringing total foreclosures prevented since 2007 to 565,000 - a number we expect to continue to grow. While we do not know if the economy will deteriorate further, we feel confident that, with our strong capital and reserve levels and significant earnings power, we can continue to reinvest in our businesses and do well for our clients, communities and shareholders over the long term."