Bank of America Corp. (BAC) did not just manage to avoid a loss in the first quarter, it crushed analysts' expectations, recording earnings of $4.2 billion, or 44 cents per share -- 40 cents higher than the 4 cents a share analysts surveyed by Thomson Reuters expected. But the bank also took a hefty $13.4 billion provision for loan losses. BAC shares declined over 8 percent in pre-market trade.
Oracle (ORCL) said it would acquire Sun Microsystems (JAVA) for $7.4 billion, or $9.50 a share, 42 percent above JAVA's Friday closing price. Up until very recently, International Business Machines (IBM) courted Sun. ORCL shares declined nearly 7 percent in pre-market trading, JAVA's soared over 36 percent.
PepsiCo (PEP) offered about $6 billion on Monday to buy the shares it does not already own in its two largest bottlers, Pepsi Bottling Group (PBG) and PepsiAmericas (PAS). PepsiCo said it sees pretax synergies of more than $200 million annually, and expects the deal add to its earnings by at least 15 cents a share. It also reported better-than-expected quarterly earnings. PEP shares declined 1.7 percent, PGB's and PAS's gained over 17 percent each before the bell.
GlaxoSmithKline (GSK) agreed to pay up to $3.6 billion for independent American dermatology company Stiefel Laboratories Inc. Stiefel is partly owned by private equity firm Blackstone Group (BX). GSK shares declined 1.3 percent, BX's over 2.5 percent in premarket trading.
Eli Lilly & Co. (LLY) said its first-quarter profit rose 24 percent to $1.31 billion, or $1.20 per share, on a boost in sales of the antidepressant Cymbalta and the insulin Humalog as costs stayed flat. Higher prices for several drugs helped revenue, as revenue rose 5 percent to $5.05 billion. Results of bottom line considerably beat estimates for profit of 99 cents per share on revenue of $5.05 billion. LLY shares traded higher before the bell.
Hasbro (HAS) said first-quarter profit fell 47 percent to $19.7 million, or 14 cents per share, due to the stronger dollar and retailers cutting back on their inventory levels. But results met analyst expectations.
Halliburton (HAL) said first-quarter profit fell 35 percent to $378 million, or 42 cents a share after a collapse in crude prices reduced exploration and production spending by customers. Excluding items, Halliburton's profit was 2 cents higher than estimates, according to Bloomberg. HAL shares declined over 4 percent in premarket trading.
International Business Machines and Texas Instruments are (TXN) are set to report earnings after the close.
UBS (UBS) said it will sell its Brazilian unit UBS Pactual for $2.5 billion to BTG Investment. While that's about the same price that UBS paid to buy the company three years ago the deal will help strengthen the group's core capital.
Citigroup (C) -- Goldman Sachs analyst halved his estimate for Citigroup's 2009 loss to 25 cents per share and kept a 12-month price target for the stock of $1.50. Citi shares declined over 7 percent in premarket trade.