Movers: Goldman Sachs, Citigroup, AIG, Sunpower, Medicis

Goldman Sachs Group (GS) reaches agreement to sell $5 billion of perpetual preferred stock to Berkshire Hathaway (BRKA) in a private offering. Preferred stock has a dividend of 10% and is callable at any time at a 10% premium. Berkshire will also receive warrants to purchase $5 billion of common stock with strike price of $115 per share, exercisable at any time for a 5-year term. GS also says it is selling at least $2.5 billion in common equity in a public offering. Wachovia reiterates outperform.

Citigroup (C) falls 0.84 to 19.15. Bloomberg reports that C is in talks to sell its Primerica unit to J.C. Flowers & Co. and Protective Life (PL), citing people with a knowledge of the talks. According to the report, Flowers may invest in PL, which would then buy Primerica.

American International Group (AIG) signs a definitive agreement with Federal Reserve Bank of New York for 2-year, $85 billion revolving credit facility. Interest will accrue at a rate based on 3-month LIBOR plus 8.50%.

Bank of New York Mellon (BK) says as a result of recent market events, it will provide support to clients invested in money market mutual funds, cash sweep funds, and similar collective funds impacted by the Lehman Brothers bankruptcy filing. Expects to incur after-tax charge of about $425 million in the third quarter, which includes additional costs associated with previously disclosed capital support agreements that were outstanding at the end of the second quarter.

Capital One Financial (COF) affirms previously issued 2008 financial expectations, but notes that if margins remain at or near second quarter levels, COF expects to be toward lower end of its mid-single digit revenue growth projection. Says it expects continuing weakness in U.S. economy. Also expects to build its allowance for loan losses by about $200 million in the third quarter. This would result in allowance for loan losses as of Sept. 30, 2008 that would have capacity to absorb equivalent of about $7.2 billion in managed losses over next 12 months. Proposes public offering of 14 million shares.

Sunpower (SPWR) and other solar stocks are seen higher following U.S. Senate’s passage of a bill that would extend $18 billion in tax credits for renewable energy for 8 years.

Medicis Pharmaceutical (MRX) falls 2.16 to 15.76 after the company says its Audit Committee concluded that the company’s financial statements for the annual, transition and quarterly periods from 2003 through 2007 and first quarter and second quarter of 2008, will likely need to be restated and should no longer be relied upon as well as Ernst & Young LLP’s reports on the financial statements and effectiveness of internal control over financial reporting for the related periods. Suspends previously reported financial guidance for remaining periods of 2008. S&P downgrades to sell from hold.

Energy Conversion Devices (ENER) rise 9.13 to 65.59 after ENER says that its business remains strong, there has been no change to its fundamentals, and the announced changes in customer Solar Integrated Technologies’ business do not affect ENER’s positive growth outlook. Credit Suisse reiterates outperform.

General Growth Properties (GGP) falls 1.38 to 15.62. S&P notes GGP shares continue to be volatile, which it attributes to concern about GGP’s ability to refinance its debt burden, significantly larger than many peers. S&P lowers target, maintains sell.

MEMC Electronic Materials (WFR) says some of its regional suppliers had startup difficulties as a result of the Hurricane, which resulted in its Pasadena facility running at very low utility. However, it now believes it at tail end of these raw material issues, which should allow it to achieve normal production rates within the next few days.

Wells Fargo & Co. (WFC) says its Board of Directors increased the company’s common stock repurchase authority by an additional 25 million shares to meet team member benefit plan requirements.

Yahoo (YHOO) – FT reports that Yahoo’s new board cleared the way for a fresh round of discussions with Time Warner (TWX) over the future of its AOL unit, potentially reigniting negotiations for a combination of the two internet businesses that stalled earlier this year. According to one person familiar with the company’s thinking, the YHOO board approved a new round of talks with AOL, though active deal negotiations are not underway at this stage.

CONSOL Energy (CNX) expects third quarter coal production to be approximately 15 million tons, vs. previous guidance of 16.4-18.4 million tons. At 15 million tons of production, expects unit costs for the quarter to be approximately 8%-10% higher than the second quarter in which reported unit costs were $41.60 per ton produced. Cites, among other things, several roof falls along mainline belts, where roof conditions were affected by changing humidity levels. Reiterates fourth quarter coal production guidance of 17.8-19.8 million tons.

Kirby (KEX) sees third quarter EPS of $0.73-$0.76, vs. $0.64 in third quarter 2007. Estimates Hurricanes Gustav and Ike will negatively affect third quarter EPS by $0.08-$0.09, timing of reduction in diesel fuel prices will positively affect third quarter EPS by $0.03-$0.04.

National Financial Partners (NFP) says for the first two months of the third quarter, total revenue declined about 7%, same-store revenue fell about 10%, vs. year-ago. Says revenue hurt by severe disruptions in credit markets, continued restrictive underwriting, diligence in high net work, older age life insurance and life settlements markets. Given current market conditions, says it’s unclear whether September results will conform to historical pattern, typically largest portion of quarterly revenue and earnings have been generated in third month of Q.

Sonic (SONC) says while franchise drive-in same-store sales were positive for the fourth quarter, same-store sales for partner drive-ins [drive-ins in which the company owns a majority interest] continued to be significantly negative, resulting in slightly negative system-wide same-store sales. Sees just slightly positive EPS growth for fiscal year 2008. Sees 12%-14% fiscal year 2009 EPS growth.

Intuit (INTU) reaffirms guidance for the first quarter non-GAAP loss of $0.11-$0.14 on 8%-11% higher revenue, fiscal year 2009 non-GAAP EPS of $1.86-$1.90 on revenue rise of 9%-12%

H.B. Fuller (FUL) posts $0.44 [including $0.09 tax benefit], vs. $0.44 a year ago, third quarter EPS from continuing operations as rapidly rising raw material costs and a lag in realized selling price increases offset 2.8% revenue rise. Sees $0.40-$0.45 fourth quarter EPS from continuing operations on revenue of $380-$390 million.

Natus Medical (BABY) – Needham downgrades BABY to hold from buy.

Worthington Industries (WOR) posts $0.86, vs. $0.24, first quarter EPS on 20% sales rise. Notes rising price environment, reduced costs, maximized asset utilization. But company says the first quarter’s record quarterly sales and net earnings are not sustainable given current market conditions, particularly in Steel Processing and Metal Framing business segments.

Lowe’s Companies (LOW) reiterates fiscal year 2009 guidance of $1.48-$1.56 EPS on 6%-7% lower same-store sales, 1% higher total sales, also sees approximately 120 new store openings. For fiscal year 2010, sees $1.40-$1.65 EPS on negative 3% to positive 1% same-store sales, 2.5%-6.5% higher total sales, 75-85 new store openings.

CSX Corp. (CSX) expects recent storms in Gulf Coast and Midwest to reduce third quarter EPS by $0.06-$0.08. Says impact is primarily related to asset write downs, business interruption and reroute expenses. CSX did not change its 2008 or long-term financial guidance.