Lehman (LEH) : why release earnings early? Good news?

Lehman (NYSE:LEH) has moved up its quarterly earnings release by a week. Results will be out tomorrow at 7.30 AM.

The brokerage probably did not have much choice. According to CNN Money, Lehman faces a downgrade by S&P at the same time that it stock traded down to a 10-year low.

Lehman shareholders did panic today and pushed the stock as low as $7.64, down almost 90% from its 52-week high.

The firm had two choices at the close of trading. One was to say that it would stick with its original earnings release date. The market might have viewed that as a sign that Lehman believed it would still be around in a week. Good news in a perverse sort of way.

The other option was to put out earnings right away. Since it is almost certain that the numbers will be poor, Lehman has to have another shoe to drop. It is almost a lock that the company did not dodge a sharp devaluation in the net worth of its commercial real estate portfolio and mortgage-backed paper.

It is a good bet that sometime during today's trading Lehman found some cash. Whether that come from overseas or from US private equity, someone got to put up money at a valuation of below $8. Or, Neuberger Berman was sold below its market value because Lehman needed the capital.

Wall St. may not like what Lehman had to do to come up with cake, but it is better than the alternative.

Douglas A. McIntyre is an editor at 247wallst.com.