For the quarter the company reported revenue of $608 million, up 18% from a year ago, and well above the Street consensus at $553.7 million. Non-GAAP EPS of 31 cents a share beat the Street by a nickel.
For Q1, the company sees revenue of $580 million to $600 million, above the Street at $530.3 million.
For all of 2010, the virtualization software company sees revenue of $2.45 billion to $2.55 billion, up 21%-26% from the $2 billion reported for 2009, and ahead of the Street at $2.28 billion.
VMW in late trading is up $5.05, or 12%, to $47.05.
I just read a research report from Dick Bove of Rochdale Securities that made me actually laugh out loud. It has the most irony impaired title I have ever read — the bold, all caps, title Bove penned was:
WILL IGNORANCE, DECEIT, AND RAGE DESTROY THE FINANCIAL SYSTEM?
Someone should tell the boy its too late for “ignorance, deceit and rage,” as the financial sector has already destroyed financial system . . .
I just have to ask: WTF do these people get their ginormous cojones from? Do they have a tailor on call to let out their inseam to make room for their balls ? Talk about unmitigated gall — a research analyst from Wall Street is upset over anger destroying the financial system. It would be funny if it wasn’t so god-damned pathetic . . .
Dow 10,201.85 +28.87 (0.28%)
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Nasdaq 2,210.80 +5.51 (0.25%)
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Filed under: Stocks to BuyI'm reiterating my buy rating for alternative fuel systems company Fuel Systems Solutions Inc. (FSYS), first recommended on August 17, 2009 at a price of $30.42. Here's why:
Fuel Systems appears to be well-positioned to benefit from Congress' proposed extension of tax incentives and credits for natural gas vehicles and infrastructure. The proposed bill also mandates that 50% of the U.S. government's vehicle fleet convert to natural gas in the years ahead. The First Call FY2009/FY2010 EPS estimates for FSYS are $2.44 to $2.68. That FY2010 EPS will likely prove to be low.Permalink | Email this | Comments
Filed under: ManagementThe New York Times reports that "General Motors ended its search for a chief executive on Monday by naming Edward E. Whitacre Jr., its chairman and interim chief, to the job permanently, a person with knowledge of the decision said Monday."
And with that, GM's chairman will now be the company's permanent CEO. None of this is to cast stones at Whitacre's ethics or competence, or the work he's done at GM so far, but here's the truth: it is a pretty universally held principle of corporate governance that separating the chairmanship from the CEO is a good idea.Permalink | Email this | Comments
Terms of the deal call for each Ticketmaster share to be converted into a number of Live Nation shares such that Ticketmaster holders will get 50.01% of the combined company. The current expectation is that each TKTM shares will be converted to 1.474 LYV shares, with about 84.6 million shares issued in total.
Current LYV chief Michael Rapino will be president and CEO. Irving Azoff will be executive chaiman, while Barry Diller will serve as chairman.
In today’s trading:
- TKTM is up $2.48, or 18.7%, to $15.78.
- LYV is up $1.57, or 17.1%, to $10.73.
Where is the outrage?
Home owners have been chastised by the likes of former Treasury Secretary Henry Paulson for walking away from their responsibility to pay their mortgages. Yet today we saw the world’s biggest case of “jingle mail” –a borrower mailing the keys to a property to lenders.
Real-estate developer Tishman Speyer is handing control of the Manhattan apartment complex Stuyvesant Town and Peter Cooper Village to lenders that backed the $5.4 billion acquisition. With the massive property underwater and Tishman having put only $112 million of its own money into the deal, it makes more sense for the Speyers to walk away from the apartments.
Like residential home owners, Tishman Speyer Group calculated that it could take decades to regain the equity lost on its property.
Similarly, Tishman Speyer has calculated that complicated tenant laws in the New York could prevent the company from profiting on the development for many years. (The companys strategy depended on being able to evict lower paying tenants and replace them with young professionals.)
Yet while residential homeowners are being attacked for not making good on their mortgages, Tishman Speyer has so far avoided such criticism.
Home owners have been warned that voluntarily defaulting on their mortgages will mar their credit histories and shame them among family and friends.
But that isnt typically how it works for the big boys, like Tishman Speyer.
Consider New York developer Harry Macklowe, who gave back several buildings more than a decade ago and defaulted on short-term loans in 2008 that he had used to buy seven Manhattan skyscrapers for $7 billion.
Or developer Ian Bruce Eichner, who gave up multiple New York properties to lenders in the 1990s and in 2008 walked from a $1 billion loan from Deutsche Bank to build a casino-resort in Las Vegas. Donald Trump also has rebounded from failed real-estate projects over the years.
In commercial real estate, failure on an epic scale need not be a career killer, according to a Journal article in May 2008.
Home owners who are walking away from their mortgages may want to tell Paulson et al to spare them the lecture.
Now comes the next part of the strategy: an IPO. The filing came late last week.
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McKinsey has out a new report with some useful figures showing the rise of leverage worldwide, where it must fall, and the corresponding GDP consequences.