Cisco Systems Inc. (NASDAQ: CSCO) reported earnings Wednesday after close, beating estimates, but warning that incoming orders declined dramatically -- 20% -- in January. For the quarter, Cisco reported earnings of 32 cents per share excluding items, beating the average analyst estimate by 2 cents. CSCO shares declined 3.4% in premarket trading.Swiss Reinsurance Co. will get a capital injection of $2.6 billion from Warren Buffett's Berkshire Hathaway (NYSE: BRK.A) after warning investors it expects to lose $869 million for the full year. The investment will pay a 12% coupon and could convert into a stake of more than 20% in the company.
Visa Inc. (NYSE: V) reported fiscal first-quarter Wednesday night, posting a 35% profit increase to $574 million, or 74 cents per share, beating estimates of 66 cents per share according to Thomson Reuters. Visa shares gained 9.7% in premarket trading.
Ford Motor Co. (NYSE: F) is still aiming to sell assets rather than ask for bailout funds. It is in talks to sell its Volvo Car unit to China's Geely Automobile Holdings Ltd., according to Bloomberg sources. Ford probably will get less than the $6.4 billion it paid for Sweden-based Volvo in 1999, the sources say.
Toyota Motor Corp. (NYSE: TM) shut all but one of its Japanese assembly lines! According to the carmaker, it plans 10 more days like this, spread out over the next two months in an attempt to save what jobs the automaker can.
Lenovo Group (OTC: LNVGY)'s CEO William Amelio stepped down from the Chinese computer maker, as the group reported a $96.7 million quarterly loss.
Companies reporting earnings today include:
- Kellogg (NYSE: K) posted higher quarterly profit, but trimmed its 2009 sales forecast. Shares advanced in premarket.
- Burger King (NYSE: BKC) posted a lower quarterly profit and cut its forecast for the year. Shares advanced in premarket.
- MasterCard (NYSE: MA)'s profit fell 21% from year-ago results, but it beat estimates. Shares advanced nearly 5% in premarket trade.
- Wal-Mart Stores Inc. (NYSE: WMT)'s January same-store sales, with fuel, rose 1.5%, excluding fuel, 2.1%. This was better than the 1.1% estimates. January total world sales for the company rose 1.8%. WMT shares advanced 2.3% in premarket trade.
- Limited Brands Inc. (NYSE: LTD)'s January same-store sales fell 9%. Analysts had expected a fall of 15.9%, according to Thomson Reuters. LTD shares gained 1.5% in premarket trade.
- Dell Inc. (NASDAQ: DELL) was downgraded at JP Morgan from Neutral to Underweight. DELL shares declined 5.4% in premarket trade.
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