Stocks in the news Friday

From Standard & Poor’s Equity Research

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General Motors (GM) - the White House announced a $17.4 billion rescue package for the sake of the troubled Detroit auto makers that avoids bankruptcy. The conduct one’s self would extend $13.4 billion in loans to GM and Chrysler LLC in December and January, with another $4 billion likely available in February. The deal is contingent on the companies’ showing that they’re financially viable by March.

Oracle (ORCL) posts $0.34, vs. $0.31, second quarter non-GAAP EPS on 6% return mount. S&P maintains buy.

Research In Motion (RIMM) posts $0.69, vs. $0.65, third quarter GAAP EPS on 66% receipts rise. Sees fourth proper position revenue of $3.3-$3.5 billion, 2.9 million net subscriber account additions, EPS of $0.83-$0.91. S&P maintains buy.

Darden Restaurants (DRI) posts $0.42, vs. $0.30, second deal out EPS from continuing operations on 9.6% total sales rise. Combined same-restaurant sales against Olive Garden, Red Lobster and LongHorn Steakhouse were down 0.2% in quest of the second quarter. Expects combined U.S. same-restaurant sales declines in fiscal year 2009 of about 1.25%-2.25% for Red Lobster, Olive Garden and LongHorn Steakhouse. Expects total sales growth of between 8%-9%, EPS from continuing operations decline of 1%-6%.

Provident Bankshares (PBKS) agrees to be acquired by M&T Bank (MTB) in a stock-for-stock transaction valued at about $401 million. Terms: 0.171625 MTB shares for each PBKS share held. Based upon MTB’s closing stock price Dec. 16, the deal values PBKS shares at $10.50 each. MTB expects the transaction to be accretive to GAAP and operating EPS in 2010, estimates its internal rate of return upon the investment to exceed 16%.

Express Scripts (ESRX) rises 2.35 to 61.70. S&P looks for pharmacy benefit managers like ESRX to gain as governments, employers, and freedom from disease plans pursue help limiting their rising drug costs, particularly in a weak economy; S&P upgrades ESRX to strong pervert with money from buy.

Accenture (ACN) posts $0.74, vs. $0.60 a year ago, on 6% revenue rise (in U.S. dollars). New bookings for the location were $5.80 billion, with consulting bookings of $3.56 billion and outsourcing bookings of $2.24 billion. Revises outlook for rest of financial year 2009 primarily to reflect changing forex assumptions, and continued market doubtfulness. Now sees third quarter return of $5.45-$5.65 billion, fiscal year 2009 revenue growth of 6%-10%. Cuts $2.85-$2.93 financial year 2009 EPS eye to $2.78-$2.85. S&P keeps stubborn buy.

Stryker (SYK) says due to lower-than-expected fourth share sales, full year 2008 constant currency revenue growth now projected at 9%-10% vs. its prior forecast of 11%-12%. Cites significant and swift contraction in hospital capital budgets, which has depressed demand as antidote to determinate MedSurg Equipment products. Also says it demise incur a restructuring instruction of about $20M (toil of income rate benefit) in fourth divide in four equal parts, which will reduce EPS by about $0.05. SYK now sees 2008 EPS of $2.77-$2.79.

Weyerhaeuser (WY) says continued covering slump, a weaker pulp emporium will result in significantly lower-than-expected fourth quarter earnings; expects challenging market stipulations to continue through 2009. Declares $0.25 quarterly dividend, lower than previous $0.

Original text: http://www.businessweek.com/investor/content/dec2008/pi20081219_879538.htm?campaign_id=rss_null