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Stock Market & Financial Investment News

News Breaks
June 23, 2014
13:49 EDTETN, MTOREaton climbs after settlement seen as less expensive than expected
Shares of industrial products maker Eaton (ETN) are advancing after the company reached a settlement of the antitrust lawsuit filed against it by ZF Meritor, a joint venture between Meritor (MTOR) and Germany's ZF Friedrichshafen. A number of analysts said that the settlement was more favorable to Eaton than they had expected and Meritor's stock is falling in the wake of the news. WHAT'S NEW: Eaton agreed to pay ZF Meritor $500M to settle the latter company's lawsuit, which alleged that Eaton had sought to stifle competition in the truck transmission market by giving rebates to truckers who bought its transmissions. ANALYST REACTION: In a note to investors earlier today, Wells Fargo analyst Andrew Casey wrote that the $500M amount was lower than most had expected, since Eaton may have had to pay $1.4B-$2.4B if the size of the payment had been decided through a trial. Additionally, the settlement removes uncertainty regarding Eaton, Casey stated. He kept an Outperform rating on the shares. Meanwhile, Morgan Stanley analyst Ravi Shanker responded to the news by raising his price target on Meritor to $17 from $15. The company will receive net proceeds of $209M from the settlement and it will use the proceeds to fund mandatory pension contributions for the next three years, Shanker stated. Additionally, the funds will boost Meritor's EPS and enable it to lower its debt, he added. By the second half of 2015, Meritor will use the remaining funds to help defray the cost of a share buyback program, according to the analyst. Although investors may be disappointed by the size of the settlement and the company's decision to initially channel it towards pension contributions, Shanker said he was not surprised by these developments, given the difficulty of predicting the outcome of the case and Meritor's focus on reducing its debt. He continues to like the company's fundamentals and kept an Overweight rating on the shares. PRICE ACTION: In mid-afternoon trading, Eaton climbed 2.2% to $79.28 and Meritor tumbled 12.3% to $12.80.
News For ETN;MTOR From The Last 14 Days
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October 29, 2014
09:19 EDTETNOn The Fly: Pre-market Movers
UP AFTER EARNINGS: Goodyear Tire (GT), up 10%... Electronic Arts (EA), up 3.7%... ZELTIQ (ZLTQ), up 9%... Eaton (ETN), up 2.3%... Anadarko (APC), up 2%... U.S. Steel (X), up 7.7%... IAC (IACI), up 3.6%. ALSO HIGHER: Fiat Chrysler (FCAU), up 12% after reporting quarterly results, announcing plan to spin off Ferrari... Cara Therapeutics (CARA), up 17.8% after HAL trial of IV formulation of CR845 met primary endpoint... Jamba (JMBA), up 4% after upgraded at Wedbush. DOWN AFTER EARNINGS: Facebook (FB), down 5.7%... Gilead (GILD), down 3.2%... Ralph Lauren (RL), down 2.3%... SodaStream (SODA), down 3%... Garmin (GRMN), down 5%... Applied Micro Circuits (AMCC), down 9.9%... STMicroelectronics (STM), down 10%... Ballard Power (BLDP), down 8.7%... Hershey (HSY), down 3.3%... Deutsche Bank (DB), down 2.3%... McKesson (MCK), down 2%. ALSO LOWER: Sanofi (SNY), down 5.7% after downgraded at various firms including Barclays and BofA/Merrill after the company's board removed Christopher Viehbacher as CEO... InvenSense (INVN), down 22%, downgraded at Pacific Crest, Northland and Piper Jaffray following the company's Q2 earnings results... CareTrust REIT (CTRE), down 3.6% after acquiring Cross Healthcare Seniors housing portfolio... Orbital (ORB), down 16% after Orb-3 launch mishap... American Realty (ARCP), down 22% after announcing resignations of CFO, CAO.
06:36 EDTETNEaton reports Q3 Electrical Products sales up 3% to $1.9B
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06:35 EDTETNEaton sees FY14 EPS $4.55-$4.65, consensus $4.54
Strong productivity growth and tight expense control are offsetting the impact of negative foreign exchange and lower market growth.
06:34 EDTETNEaton sees Q4 EPS $1.15-$1.25, consensus $1.18
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06:34 EDTETNEaton expects markets in 2014 likely to grow 2%, down from prior estimate of 3%
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06:33 EDTETNEaton reports Q3 EPS excl. items $1.29, consensus $1.23
Reports Q3 revenue $5.73B, consensus $5.80B
October 28, 2014
15:44 EDTETNNotable companies reporting before tomorrow's open
Notable companies reporting before tomorrow's market open, with earnings consensus, include Southern Company (SO), consensus $1.07; Phillips 66 (PSX), consensus $1.75; Automatic Data Processing (ADP), consensus 60c; Praxair (PX), consensus $1.63; WellPoint (WLP), consensus $2.27; Exelon (EXC), consensus 73c; Eaton (ETN), consensus $1.23; Hess (HES), consensus $1.08; TE Connectivity (TEL), consensus $1.00; McGraw Hill Financial (MHFI), consensus 94c; Waste Management (WM), consensus 68c; Hershey (HSY), consensus $1.08; Ralph Lauren (RL), consensus $2.06; Wisconsin Energy (WEC), consensus 53c; Garmin (GRMN), consensus 71c; Sealed Air (SEE), consensus 46c; DENTSPLY (XRAY), consensus 60c; Goodyear Tire (GT), consensus 70c; Revlon (REV), one estimate 45c; Booz Allen (BAH), consensus 41c; Carlyle Group (CG), consensus 54c.
October 23, 2014
18:34 EDTETNEaton contracted to provide MGM Resorts with power management solutions
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October 20, 2014
07:22 EDTETNSolar Energy Trade Shows to hold a conference
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