Trading for the Masses

08:34 BLC Belo misses by $0.02, reports revs in-line (18.53 )

Reports Q3 (Sep) earnings of $0.18 per share, $0.02 worse than the Reuters Estimates consensus of $0.20; revenues fell 2.9% year/year to $365.3 mln vs the $367.7 mln consensus. Regarding Belo’s outlook for the fourth quarter of 2007, Dennis A. Williamson, executive vice president/Chief Financial Officer, said, “While we expect spot revenue excluding political to be up in the mid-single digits, we expect total Television Group revenues to be down in the mid-single digits as we cycle against $31.6 million of political revenue in the fourth quarter of 2006.”
08:34 Synvista Therapeutics’ (SYI) Alagebrium Shows Potential for use in Treating Diabetes-Related Gastrointestinal Complications

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08:33 GMT sees FY07 EPS at the higher end of $2.90-3.10, excluding $0.17 tax benefit, vs $3.09 Reuters consensus
08:33 BLL prelim $1.09, ex items, vs $1.05 Reuters consensus; revs $1.91 bln vs $1.96 bln Reuters consensus
08:33 APA Apache beats by $0.21, beats on revs

Reports Q3 (Sep) earnings of $2.17 per share, excluding non-recurring items, $0.21 better than the Reuters Estimates consensus of $1.96. “We remain on track to achieve the top end of our targeted range of 9-12% production growth in 2007. We expect a strong finish to
the year in every financial and operational aspect…”
08:32 S&P futures vs fair value: +0.6. Nasdaq futures vs fair value: +10.3.

Futures dip following two economic reports. Just reported, durable orders for September dropped 1.7%. Initial jobless claims for the week ended 10/20 dropped to 331k. Durable orders were expected to rise by 1.5%. Initial claims where expected to come in at 320k.
08:32 DLX sees FY07 $2.75-2.80 vs $2.78 Reuters consensus; sees revs $1.61-1.62 bln vs $1.61 bln Reuters consensus
08:32 KSU KC Southern beats by $0.11, beats on revs (36.56 )

Reports Q3 (Sep) earnings of $0.48 per share, $0.11 better than the Reuters Estimates consensus of $0.37; revenues rose 6.8% year/year to $444.1 mln vs the $432 mln consensus.
08:32 ESV Ensco reports Q3 (Sep) results, revs in-line (54.38 )

Reports Q3 (Sep) earnings of $1.82 per share, includes tax benefit and charges due to conclusion of operations in Nigeria, may not be comparable to the Reuters Estimates consensus of $1.69; revenues rose 13.5% year/year to $551.9 mln vs the $549.6 mln consensus.
08:32 GMT reaffirms FY07 guidance of non-GAAP EPS of $2.90-3.10, excluding $0.17 gain vs $3.09 Reuters consensus
08:32 DLX prelim $0.62 vs $0.61 Reuters consensus; revs $388.6 mln vs $391.6 mln Reuters consensus
08:31 NPSP NPS Pharm Announces Approval of Cinacalcet HCl in Japan

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08:31 GMT prelim $1.05 vs $0.83 Reuters consensus; revs $346.2 mln vs $332.15 mln Reuters consensus
08:31 TDY sees Q4 $0.65-0.68 vs $0.68 Reuters consensus
08:31 SYNT sees FY07 $1.43-1.48 vs $1.39 Reuters consensus; sees revs $332-337 mln vs $329.53 mln Reuters consensus
08:31 APA prelim $2.17 vs $1.96 Reuters consensus; revs $2.5 bln vs $2.45 bln Reuters consensus
08:31 TDY prelim $0.75 vs $0.71 Reuters consensus; revs $408.9 mln vs $416.51 mln Reuters consensus
08:31 GMT prelim $1.04 excluding $0.17 gain vs $0.83 Reuters consensus; revs $346.2 mln vs $332.15 mln Reuters consensus
08:31 MIPI Molecular Insight Pharma Presents Preclinical Trofex(TM) Prostate Cancer Data; plans to begin exploratory clinical trials in the first half of 2008

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08:30 SYNT prelim $0.37 vs $0.34 Reuters consensus; revs $87.9 mln vs $84.61 mln Reuters consensus
08:30 BEAS BEA Systems Board sets $21.00/share value position (17.55 )

Co issued the following statement: “We continue to believe that Oracle’s unsolicited proposal to acquire BEA at $17.00 per share significantly undervalues BEA, and is therefore not in the best interests of BEA shareholders. Accordingly, we will continue to vigorously oppose a sale to Oracle at $17.00 per share. Over the last several weeks, Oracle has repeatedly asked us for the price at which we would be willing to begin negotiations, and the Board has concluded, after consultation with its financial advisor Goldman Sachs, that it is prepared to authorize negotiations with third parties including Oracle at a price of $21.00 per share. The Board has authorized its legal counsel, Wachtell Lipton Rosen & Katz, to deliver today to any such third parties a draft merger agreement that it is prepared to sign that will be in customary form and provide for an appropriately high degree of certainty of closing. The Board noted that BEA is a world leader in enterprise infrastructure software with industry-leading products in AquaLogic, WebLogic and Tuxedo, a deep and diverse customer base including 75% of the Fortune Global 500 companies, compelling international growth opportunities in China and elsewhere, and a leadership position in the ongoing SOA evolution, as well as an exceptionally strong balance sheet with over $1 billion in cash and no debt. Based on analyst estimates of synergies in prior acquisitions by Oracle and other software consolidators, the Board believes Oracle or other third parties could achieve earnings accretion in a BEA acquisition at levels well in excess of $21.00 per share.”
08:30 ESV prelim $1.82 vs $1.69 Reuters consensus, $1.70 First Call; revs $551.9 mln vs $549.55 mln Reuters consensus
08:30 AKAM Akamai Tech tgt cut to $50 at FBR (32.97 ) -Update-

Friedman Billings cuts their tgt on AKAM to $50 from $64 as they are less optimistic that AKAM will be accorded a premium multiple given the increasing competitive environment.
08:30 ECONX Initial Claims 331K vs 320K consensus, prior revised to 339K from 337K
08:30 KSU prelim $0.48 vs $0.37 Reuters consensus; revs $444.1 mln vs $432.03 mln Reuters consensus
08:30 GFSI Goldleaf Hits Significant Remote Deposit Milestone

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08:30 ECONX Durable ex-trans +0.3% vs +0.7% consensus, prior -1.8%
08:30 ECONX Durable Goods Orders -1.7% vs +1.5% consensus, prior revised to -5.3% from -4.9%
08:29 INSID Insider trading disclosed in filings after the close yesterday

Buyers: Contango Oil & Gas (MCF 41.13) Director bought 1K shares at $42.28… USG (USG 36.42) 10% Owner GEBR KNAUF bought 165,600 shares at $35.76… American Mortgage Acceptance (AMC 7.84) 10% Owner Centerline Holding bought 6,050 shares at $7.81… CPI (CPY 34.1 10% Owner Starboard Value & Opportunity Master Fund bought 5K shares at $36.81… DayStar Technologies (DSTI 5.05) 10% Owner Quercus Trust bought 104,196 shares at $5.41… Symphony Technology discloses 9.0% stake in Clayton Holdings (CLAY 7.14) on SC 13D… Sellers: Stryker (SYK 71.51) 10% Owner J. Stryker sold 150K shares at $71.02 - $71.63… Cypress Semi (CY 35.86) CEO sold 1,527,001 shares at $33.58… Innophos Holdings (IPHS 15.34) Officer sold 20K shares at $15.07… Bank of NY Mellon (BK 46.89) Officer/Director sold 91,305 shares at $45.68 - $45.87… Northern Trust (NTRS 72.60) Officer sold 10K shares at $68.65; Director sold 46,500 shares at $69.42… Constellation Energy Partners (CEP 36.40) 10% Owner Lehman Bros. sold 72,700 shares at $36.22… China Precision Steel (CPSL 9.49) 10% Owner sold 20K shares at $9.28… Landec (LNDC 14.47) Director sold 23,567 shares at $14.42… Packaging Corp. of America (PKG 30.70) Officer sold 110K shares at $30.19 - $30.58… Intraware (ITRA 5.89) 10% Owner Crosslink Capital sold 28,126 shares at $6.01… Amcol Int’l (ACO 39.80) President sold 20K shares at $39.03… BlackRock (BLK 189.23) Officer/Director sold 54,900 shares at $190.32 - $190.53.
08:28 CDI CDI Corp Earnings Color (23.77 ) -Update-

Reuters Estimates is telling us that an actual of $0.39 per share is comparable to Reuters estimates of $0.39. See earlier comment at 6:59.
08:28 HYTM Hythiam: UBS reiterates a Buy and $15 target (7.00 ) -Update-

Briefing Note: This is noteworthy because this analyst pulled his rating on the stock yesterday which accounted for the 18% drop in the stock on 10x avg volume.
08:27 HLYS Heelys: Preannounces further downside but picks up two big customers for 2008 - Brean Murray (8.43 )

Brean Murray notes HLYS preannounced 3Q07 rev of $49 mln and EPS of $0.22-0.23, below original guidance and firm’s ests. Firm notes HLYS is the cheapest footwear brand in their universe. In addition, the co has opened two new retail accounts — Famous Footwear and Shoe Carnival. Firm tends to think that the family footwear channel is a good option for Heelys and could lead to some incremental revenue in 4Q07 as well as in 2008. However, the situation continues to be bleak, and until management proves that it can reduce retail inventories while reinvigorating consumer demand, they believe investors are better off investing their money elsewhere.
08:27 AVX AVX Corp misses by $0.01, beats on revs (16.17 )

Reports Q2 (Sep) earnings of $0.23 per share, excluding non-recurring items, $0.01 worse than the Reuters Estimates consensus of $0.24; revenues rose 7.0% year/year to $400.7 mln vs the $390.2 mln consensus.
08:27 IMCL Imclone Earnings Color (43.71 ) -Update-

Reuters Estimates is telling us that, excluding Litigation settlement $50m & gain of $3.8 million from the proceeds of an insurance reimbursement, an actual of $0.30 per share is comparable to Reuters estimates of $0.28. See earlier comment at 7:15.
08:26 Corning and Riverbed Networks recommended in Barrons Online

Barrons Online reports consider Corning (GLW), which makes glass for LCD television sets, which Wednesday reported a very healthy 21% sales growth in September. It forecast profit growth of 23% for the fourth quarter, but because the sales outlook was light, the stock fell 6%. Or consider Riverbed Networks (RVBD), which Tuesday reported that its sales had jumped 157% in the third quarter. It forecast profit this quarter of 19 cents, versus 3 cents a year earlier, but its shares on Wednesday fell 38%.
08:25 WIRES On The Wires

Computer Sciences (CSC) announces that it has won a contract to provide range support services to the U.S. Naval Air Warfare Center, Aircraft Division. CSC estimates the value of the contract to be approx $430 mln if all options are exercised… Bank of America (BAC) Market President Executive Walter Elcock announces that New Hampshire President Michael Whitney will retire after a 30-year career in the state’s financial services industry. John Weeks will succeed Whitney as New Hampshire state president. Weeks will retain his current role as market executive for U.S. Trust, Bank of America Private Wealth Management in New Hampshire and Maine… Osiris Therapeutics (OSIR) announces the initiation of a Phase II clinical trial evaluating Prochymal, a stem cell therapy, as a treatment for type 1 diabetes… Activision (ATVI) announces an agreement with Audiokinetic to integrate the WaveWorks Interactive Sound Engine into select titles across the co’s global development studios… Fuwei Films (FFHL) announces the resignations of both Tongju Zhou and Mark E. Stulga as directors of the co effective October 18, 2007; co also announces it has opened a marketing office in Osaka, Japan, to focus on market expansion and customer service for BOPET film in Japan.
08:24 HUB.B Hubbell Inc beats by $0.16, misses on revs; guides FY07 EPS in-line, revs below consensus (51.75 )

Reports Q3 (Sep) earnings of $1.10 per share, $0.16 better than the Reuters Estimates consensus of $0.94; revenues rose 0.6% year/year to $652.7 mln vs the $669.5 mln consensus. Co issues in-line EPS guidance for FY07, sees EPS of $3.35-3.45 vs. $3.36 consensus; sees FY07 revs growth of 5-6%, which equates to $2.54-2.56 bln vs. $2.57 bln consensus.
08:24 RTIX Regeneration Tech reports EPS in-line, beats on revs (10.62 )

Reports Q3 (Sep) earnings of $0.01 per share, in-line with the Reuters Estimates consensus of $0.01; revenues rose 31.4% year/year to $23.8 mln vs the $23.2 mln consensus.
08:23 BONDX Bond Watch: Giving a Little Back

The market is suffering a renewed appetite for risk, albeit a modest one, as yesterday’s equity recovery has provided some reason for hope that the sky is not falling in stockland. Unfortunately, bond trade is a little scrambled now. That sentiment carried through the night with few questions asked as the mega drop in existing home sales was discarded in favor of guarded optimism that the Fed will come to the rescue & that the broader economy remains ok. The 2-10-yr yield spread flattened out a little to 58.9 as curve trade is lightening up its steepening bias into the day’s data Bond prices in the EuroZone were hit by the better stocks & inline business sentiment data out of Germany. In Japan, stocks fell but the overbought bonds have not been able to rally on that inverse relationship. Treasuries get some more mid-tier data early on, but mostly trade will be watching new home sale data & equity gyrations. Though after yesterday’s head fake, trade will be a little more suspicious of a melt down across the aisle. Treasury sells some 5-yr notes & that extra supply is expected to hang over the market. The outlook for bonds, in the meantime, is a little precarious as prices managed to break to fresh trend highs but follow-through was weak. Without some severely weak data today, trade is likely to see a reversion to the retracement/consolidation theme established earlier in the week. The dollar is weak as euro popped above 1.4300 & yen weakness has benefited most of the majors other than the buck. Spot gold is up at 767.64 (+3.6 while crude oil is well bid at 88.67 (+1.57). The calendar has durable goods orders & initial jobless claims (8:30) followed by new home sales (10). Treasury auctions $13B of 5-yr notes. The euro is at 1.4304 & the yen is at 114.3200 while the 10-yr is -01/32nds yielding 4.343%. For more bond & economic commentary click here.
08:23 QLTI QLT Inc earnings color (4.48 ) -Update-

Reuters Estimates is telling us that an EPS actual of $0.02, excluding charges and gain on sales, is comparable to their $0.05 consensus. See 07:47 comment for full earnings entry.
08:23 PFCB PF Chang’s: Fundamentals remain under pressure - Morgan Keegan (28.06 )

Morgan Keegan notes that though they are disappointed the soft operating fundamentals persist for PFCB, firm is not lowering their investment rating. The continued soft SSS and new unit performance combined with operating cost pressures are concerning. However, mgmt appears committed to improving longer-term shareholder value through a focus on margin improvement efforts and more conservative capital allocation. This plan could yield strong growth in 2008 free cash flow, which likely would be returned to shareholders in the form of share repurchases. Additionally, given the co’s strong sales-to-investment ratios and near industry high sales per square foot metrics, firm believes both brands continue to possess strong return potential and remain attractive longer-term investment vehicles.
08:22 Early pre-mkt gappers:

Gapping up: BG +6.7%, LFT +5.9%, EMC +6.4%, SORL +5.4%, VMW +5.3%, AKAM +5.6%, DAI +4.4%, MOT +3.8%, FLIR +3.5% LDK +2.6%, PKX +2.2%, ABB +2.1%… Gapping down: ALGN -20.8%, VDSI -16.6%, SYMC -10.1%, CELG -8.4%, FREE -7.5%, PALM -2.3%, CMCSA -1.7%, SPWR -1.2%.
08:22 AAPL Apple in a fight for rights to TV shows - Washington Post (185.93 ) -Update-

Washington Post reports Apple’s Steve Jobs helped save a sinking music industry, with his iPod and iTunes digital music store. Struggling record labels swallowed hard and accepted his 99-cents-per-song pricing because they had little choice. When it comes to video content, however — hit television shows such as “Heroes” and “The Office,” and movies — Jobs’s bargaining position isn’t as strong. For the second time in a year, he is getting significant resistance from a content creator that would rather turn its back on the mighty iPod than capitulate to Jobs’s pricing demands. Compared with music cos four years ago when iTunes was launched, television networks and studios have more leverage. First, there is the revenue issue. Perhaps more important is the issue of distribution. Television cos don’t need Apple as much as music cos did. Networks such as NBC own dozens of stations and are affiliated with hundreds more. NBC’s big power play against Apple is due later this month, with a new Web site called Hulu. Also, movie studios fear damaging sales of their movies on DVD by undercutting their price on the online music store.
08:21 BHE Benchmark Elec earnings color (21.28 )

Reuters Estimates is telling us that an EPS actual of $0.26, excluding charges, tax benefit but including stock-based compensation, is comparable to their $0.23 consensus. See 07:31 comment for full earnings entry.
08:21 FSTR L.B. Foster Company beats by $0.15, beats on revs (39.68 )

Reports Q3 (Sep) earnings of $0.64 per share, excluding non-recurring items, $0.15 better than the Reuters Estimates consensus of $0.49; revenues rose 41.6% year/year to $135.8 mln vs the $126.8 mln consensus.
08:20 VTNC Vitran downgraded to Hold at Stifel (13.74 )

Stifel downgrades VTNC to Hold from Buy as the company reported 3Q07 EPS ~40% below their estimate. In addition, the firm says Vitran is in the middle of an I.T implementation systemwide which has gone fairly smoothly to-date but may cause near-term headaches.
08:20 IDSY I.D. Systems: 3Q07 preview and U.S. postal follow-on orders - Merriman (12.27 )

Merriman notes IDSY announced it it received follow-on purchase orders from U.S. Postal for five sites valued at $1.4 mln ($280,000 per site). Firm views this as a positive given that it is the first Postal announcement since April and should alleviate any concerns that Postal is continuing with the program with the co. Firm believes that the efforts of the new professional services team is paying off given their focus of helping existing and new clients with tools to better utilize the system and yield intended ROI. Firm notes IDSY is scheduled to release 3Q07 results after the market close on November 1 and they remain comfortable with their rev and EPS ests of $3.9 mln and ($0.12).
08:20 GHL Greenhill beats by $0.40, beats on revs (68.21 )

Reports Q3 (Sep) earnings of $1.25 per share, $0.40 better than the Reuters Estimates consensus of $0.85; revenues rose 107.3% year/year to $119.4 mln vs the $96.1 mln consensus. Robert F. Greenhill announced the appointment of Scott L. Bok and Simon A. Borrows, previously Co-Presidents of the Firm, as Co-Chief Executive Officers. Mr. Greenhill will remain as Chairman.
08:20 FFIV F5 Networks downgraded to Hold at Stifel (40.47 ) -Update-

Stifel downgrades FFIV to Hold from Buy following earnings. The firm says they will remain on the sidelines until they see an improvement in sales force productivity.
08:19 CLDN Celadon Group downgraded to Hold at Stifel (9.67 ) -Update-

Stifel downgrades CLDN to Hold from Buy following earnings saying revenues were reported below their forecast at $133.8 mln, up 5% relative to F1Q07. The firm says their 12-month fair value is $10, or 11x their revised CY09 EPS estimate of $0.88, provides insufficient upside potential, over the coming 12-months and relative to last night’s closing price, to justify maintaining their Buy rating.

08:19 BWA Borg Warner beats by $0.08, beats on revs; guides FY07 EPS in-line (95.49 )

Reports Q3 (Sep) earnings of $1.13 per share, excluding a $0.28 charge, $0.08 better than the Reuters Estimates consensus of $1.05; revenues rose 24.0% year/year to $1.31 bln vs the $1.2 bln consensus. Co issues in-line guidance for FY07, sees EPS of $4.73-4.83, previous company guidance was $4.63-4.83, vs. $4.79 consensus. Guidance excludes $0.28 charge, includes $0.17 charge co took in Q1.
08:19 FREE Freeseas announces pricing of common stock offering; prices 11 mln shares at $8.25/share (9.30 )

08:18 TXCC TranSwitch downgraded to Neutral at Dawson James- tgt cut to $1 from $2.50 (1.00 )

Dawson James downgrades TXC to Neutral from Speculative Buy and cuts their tgt to $1 from $2.50 ahough the sales miss in Q2 was corrected in Q3 (vendor shipment to their ASIC design center), TranSwitch had another unexpected shortfall in Q3 due to one of their largest Tier-One customers (and a few smaller accounts). The firm says they they currently lack confidence in the timing of TranSwitch’s return to growth and will need to see improved customer shipment visibility going into H1 2008.
08:18 LTM LIFE TIME Fitness beats by $0.02, reports revs in-line; updates FY07 EPS and rev guidance (62.65 )

Reports Q3 (Sep) earnings of $0.48 per share, $0.02 better than the Reuters Estimates consensus of $0.46; revenues rose 25.8% year/year to $169.5 mln vs the $169.7 mln consensus. Co revises guidance for FY07 upwards, sees EPS of $1.76-$1.78 (vs. $1.76 consensus), up from previous guidance of $1.74-$1.76; sees FY07 revs of $652-$657 (vs. $657.28 mln consensus), up from previous guidance of $645-$655.
08:18 SEIC SEI Investments beats by $0.03, beats on revs (28.69 )

Reports Q3 (Sep) earnings of $0.37 per share, $0.03 better than the Reuters Estimates consensus of $0.34; revenues rose 17.3% year/year to $349.6 mln vs the $345.7 mln consensus.
08:17 IKN IKON Office beats by $0.01, beats on revs; guides Q1 EPS in-line; guides FY08 revs above consensus (12.62 )

Reports Q4 (Sep) earnings of $0.23 per share, $0.01 better than the Reuters Estimates consensus of $0.22; revenues rose 0.6% year/year to $1.06 bln vs the $1.05 bln consensus. Co issues in-line guidance for Q1, sees EPS of $0.22-0.24 vs. $0.24 consensus. Co issues upside guidance for FY08, sees FY08 revs growth of 2%, which equates to ~$4.25 bln vs. $4.21 bln consensus. Co says, “In addition, after reviewing investment opportunities for growth for FY08, we decided to narrow our acquisition strategy to focus only on small “tuck-in” acquisitions rather than transformational opportunities.”
08:17 APA Apache’s Jade-2x Well Tests 26.7 MMcf, 1,325 Barrels Per Day in Egypt’s Western Desert

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08:17 FSS Federal Signal misses by $0.11, misses on revs (15.09 )

Reports Q3 (Sep) earnings of $0.10 per share, $0.11 worse than the Reuters Estimates consensus of $0.21; revenues rose 6.1% year/year to $307 mln vs the $312.7 mln consensus.
08:17 DVD Dover Motorsports beats by $0.01, reports revs in-line (6.30 )

Reports Q3 (Sep) earnings of $0.14 per share, $0.01 better than the Reuters Estimates consensus of $0.13; revenues fell 3.5% year/year to $41.0 mln vs the $41.3 mln consensus.
08:15 AVT Avnet beats by $0.01, reports revs in-line; guides Q2 EPS above consensus, revs in-line (39.59 )

Reports Q1 (Sep) earnings of $0.69 per share, $0.01 better than the Reuters Estimates consensus of $0.68; revenues rose 12.3% year/year to $4.1 bln vs the $4.12 bln consensus. Co issues guidance for Q2, sees EPS of $0.83-0.87 vs. $0.81 consensus; sees Q2 revs of $4.45-4.65 bln vs. $4.57 bln consensus.
08:14 WMAR West Marine beats by $0.05, reports revs in-line; guides FY07 EPS below consensus (11.70 )

Reports Q3 (Sep) earnings of $0.24 per share, $0.05 better than the Reuters Estimates consensus of $0.19; revenues fell 4.1% year/year to $187.5 mln vs the $186.7 mln consensus. WMAR sees Y07 direct channel sales of $681-684 mln vs $683-688 mln previous guidance. Co issues downside guidance for FY07, sees EPS of $0.14-$0.18 (vs. $0.32 consensus), down from previous guidance of $0.24-$0.34. For the year, comparable store sales guidance is narrowed to a decrease of between 1.5% and 2.0%. Previous guidance reflected a decrease of between 1.5% and 2.5%. Sales in the direct channel are anticipated to be lower than previously forecasted, yielding total company sales of approximately $681-$684 mln as compared to previous guidance of $683-$688 mln. In addition to lower sales, the guidance reduction also reflects a reduction in gross profit margins, and higher than anticipated expenses. “We continue to invest with gross margin in promotions, inventory freshness and pricing to maintain our strong and improving long term market position. Port Supply store sales remain strong and are at a lower margin than sales directly to boaters in the retail channel.”
08:14 PCH Potlatch reports Q3 (Sep) results, beats on revs (43.61 )

Reports Q3 (Sep) earnings of $1.04 per share, includes multiple gains, charges, may not be comparable to the Reuters Estimates consensus of $0.77; revenues rose 9.9% year/year to $436.1 mln vs the $423 mln consensus.
08:14 SKX Skechers USA reports strong 3Q07 results; raising FY07 and FY08 ests - Susquehanna (21.94 ) -Update-

08:13 DDE Dover Downs Gaming beats by $0.01, reports revs in-line (10.14 )

Reports Q3 (Sep) earnings of $0.23 per share, $0.01 better than the Reuters Estimates consensus of $0.22; revenues rose 4.7% year/year to $64.6 mln vs the $64.9 mln consensus.
08:12 EDO EDO proxy sparks 2nd-bidder hopes - TheDeal.com (57.44 )

TheDeal.com hopes for another bid for the co has been fueled by the preliminary proxy for its $1.5 bln merger with ITT. The document outlines a sparse bidding process and suggests at least one other bidder might have been willing to offer more, particularly given EDO’s recent revenue growth. The ITT deal, announced Sept. 16, offers $56 per share in cash for EDO, which makes defense electronics and communications equipment and armament systems. It is tempting to think that the other bidder is still weighing its options. Even if there is no growth in the third and fourth quarters — which appears very unlikely — the initial bidder’s proposal of 11 times 2007 Ebitda implies a price near $55 per share.
08:12 PMTI Palomar Medical beats by $0.03, reports revs in-line

Reports Q3 (Sep) earnings of $0.27 per share, excluding non-recurring items, $0.03 better than the Reuters Estimates consensus of $0.24; revenues rose 12.1% year/year to $31.4 mln vs the $31.6 mln consensus.
08:12 TGIC Triad Guaranty tgt cut to $7.50 at FBR (8.23 )

Friedman Billings cuts their tgt on TGIC to $7.50 from $23 following 3Q07 results worse than what they imagined following MTG’s dismal 3Q performance. Firm is more concerned with TGIC’s results than MTG’s as TGIC is a more levered co, making it more difficult for TGIC to grow its way out of trouble. Firm believes shares will continue to trade as a binary stock: the co either survives and is worth a discounted valuation to the group, or it is downgraded by the rating agencies and goes into runoff.
08:12 SLGN Silgan Holdings beats by $0.02, reports revs in-line; guides Q4 EPS below consensus (55.56 )

Reports Q3 (Sep) earnings of $1.26 per share, $0.02 better than the Reuters Estimates consensus of $1.24; revenues rose 54.2% year/year to $904 mln vs the $895.6 mln consensus. Co issues downside guidance for Q4, sees EPS of $0.43-0.53, excluding non-recurring items, vs. $0.57 consensus.
08:12 MDS Midas misses by $0.02, beats on revs; guides FY07 revs in-line (17.30 )

Reports Q0 earnings of $0.23 per share, excluding non-recurring items, $0.02 worse than the Reuters Estimates consensus of $0.25; revenues rose 1.8% year/year to $46.1 mln vs the $45.5 mln consensus. Co issues in-line guidance for FY07, sees FY07 revs of $178 mln, compared to previous guidance of $180 mln, vs. $177.67 mln consensus.
08:12 PNW Pinnacle West beats by $0.32, beats on revs (40.34 )

Reports Q3 (Sep) earnings of $1.89 per share, excluding $0.10 tax benefit, $0.32 better than the Reuters Estimates consensus of $1.57; revenues fell 4.7% year/year to $1.03 bln vs the $939 mln consensus.
08:11 CLDN Celadon Group downgraded to Market Perform from Outperform at Morgan Keegan (9.67 )

08:10 INFI Infinity Pharmaceutical and MedImmune present preliminary Phase 1 data demonstrating biological activity of IPI-504 in advanced non-small cell lung cancer (10.03 )

Infinity Pharmaceuticals (INFI) and MedImmune announce preliminary results of an ongoing Phase 1/2 clinical trial of IPI-504, the cos’ lead heat shock protein 90 (Hsp90) inhibitor, in patients with advanced non-small cell lung cancer. Seven of nine evaluable patients receiving IPI-504 achieved disease stabilization over at least one cycle of administration, and four of four evaluated patients who underwent positron emission tomography imaging exhibited a decrease in tumor metabolic activity in response to IPI-504 administration. “IPI-504 has been well-tolerated and has displayed promising signs of biological activity in this heavily-pretreated patient population,” said Lecia Sequist, M.D., M.P.H., division of hematology and oncology, Massachusetts General Hospital. “The Phase 2 portion of the trial will further explore this activity at a higher dose level in an effort to establish a new therapeutic option for patients who have this aggressive disease.” The Phase 2 portion of the trial is expected to begin by year-end with a goal of determining the potential anti-tumor activity of IPI-504 in patients with advanced NSCLC. T
08:10 XMSR XM Satellite misses by $0.02, reports revs in-line (15.59 )

Reports Q3 (Sep) loss of $0.47 per share, $0.02 worse than the Reuters Estimates consensus of ($0.45); revenues rose 19.8% year/year to $287.5 mln vs the $287.2 mln consensus. XM ended the 2007 third quarter with ~8.57 million subscribers compared to ~7.19 million subscribers in the prior year period. XM recorded gross subscriber additions of 952 thousand and net subscriber additions of 315 thousand compared to 868 thousand gross additions and 286 thousand net subscriber additions in the 2006 third quarter. In the 2007 third quarter, XM’s subscriber acquisition costs (SAC), a component of cost per gross addition (CPGA), were $70, including ~$10 related to increased factory installations by new automotive partners. This compared to $59 in the third quarter of 2006. CPGA in the 2007 third quarter was $116 compared to $94 in the third quarter of 2006.
08:09 LIFC LifeCell beats by $0.01, beats on revs; guides FY07 EPS in-line, revs in-line

Reports Q3 (Sep) earnings of $0.21 per share, $0.01 better than the Reuters Estimates consensus of $0.20; revenues rose 35.6% year/year to $47.6 mln vs the $46.4 mln consensus. Co issues in-line guidance for FY07, sees EPS of $0.80-0.82 (consensus $0.81), vs prior guidance of $0.78-$0.82.; sees FY07 revs of $185-189 mln vs. $187.21 mln consensus.
08:09 MDS Midas reports Q3 results; lowers FY07 rev guidance (17.30 )

Co reports Q3 EPS of $0.23 vs $0.25 Reuters consensus; revs rose 2% YoY to $46.1 mln vs $45.50 mln Reuters consensus. Sees FY07 revs $178 mln vs $177.67 mln Reuters consensus, down from previous guidance of $180 mln. Operating income will likely be in a range of $28.5 to $29.5 mln, excluding the effects of continuing shop upgrade payments and the AutoZone contract amendment payment. The co previously had projected operating income in a range of $29.5-30.5 mln.
08:09 UST UST Inc beats by $0.06, beats on revs; guides FY07 EPS above consensus (51.74 )

Reports Q3 (Sep) earnings of $0.87 per share, excluding non-recurring items, $0.06 better than the Reuters Estimates consensus of $0.81; revenues rose 4.6% year/year to $479.6 mln vs the $473.6 mln consensus. Co issues upside guidance for FY07, sees EPS of $3.40-3.44, excluding non-recurring items, vs. $3.39 consensus.
08:09 LCC US Airways beats by $0.25, reports revs in-line (28.74 )

Reports Q3 (Sep) earnings of $1.96 per share, excluding non-recurring items, $0.25 better than the Reuters Estimates consensus of $1.71; revenues rose 2.3% year/year to $3.04 bln vs the $3.04 bln consensus.
08:09 HHS Harte-Hanks beats by $0.04, ex-items, misses on revs (17.36 )

Reports Q3 (Sep) earnings of $0.36 per share, excluding non-recurring items, $0.04 better than the Reuters Estimates consensus of $0.32; revenues fell 2.7% year/year to $286.7 mln vs the $291.4 mln consensus. Co says “Q3 results reflect a continuation of the trends we have seen since the beginning of this year, primarily the continued deterioration in Shoppers revenue…This has been a difficult year for us….we will obviously deliver lower earnings per share in 2007 than we had in 2006. As we continue to review all facets of the organization, it is unlikely that we will make up any of this shortfall before the year is over. These results are disappointing for everyone. But we believe in and are excited about the businesses we are in despite this difficult year.”
08:09 UA Under Armour: 3Q07 preview - Nollenberger (55.61 )

Nollenberger notes UA has established itself as a viable competitor in the athletic apparel space by building and preserving its brand image while diversifying from its football roots to multiple sports. By taking market share from competitors such as Nike, adidas, Reebok, Puma, Champion, and Russell Athletic, UA should be able to achieve or beat its stated growth targets of 20-25%. Forn notes co is to report 3Q07 operating results on Tuesday October 30. Firm’s 3Q07 EPS est of $0.34 is in line with the Street est and higher than year-ago EPS of $0.32. Firm anticipates third quarter revs of $170.4 mln.
08:09 HUB.B sees FY07 $3.35-3.45 vs $3.36 Reuters consensus

08:09 BONDX Economic Calendar

Durable goods orders & initial jobless claims at 8:30 followed by new home sales at 10.
08:08 IKN sees FY08 revs growth of 2%, which equates to ~$4.25 bln vs $4.21 bln Reuters consensus

08:08 HUB.B prelim $1.10 vs $0.94 Reuters consensus; revs $652.7 mln vs $669.47 mln Reuters consensus

08:08 Air Force decision may spur cos to challenge contracts - WSJ

WSJ reports the Air Force has asked for new bids for a hotly contested search-and-rescue helicopter contract worth more than $10 bln after LMT and UTX successfully protested the original decision to award the contract to BA. The decision is likely to give fuel to cos that might consider protesting future awards with the govt, particularly as they try to land leading roles on a shrinking number of major defense programs. One expected candidate is the multibln dollar aerial-refueling-tanker contract that is expected to be decided early next year between BA and NOC, which is offering a tanker based on the Airbus A330 jetliner.
08:07 IIG Imergent reaches agreement with the Utah Division of Consumer Protection (22.15 )

Co announced it was notified on October 22, 2007 by the Utah Division of Consumer Protection that the division has dismissed its petition requesting iMergent to register as a business opportunity. As part of the agreement, the company agreed to disclosures intended to clarify the company’s business model.
08:07 IKN sees Q1 $0.22-0.24 vs $0.24 Reuters consensus

08:07 SPWR Sunpower: Downgrade details (113.00 )

As mentioned at 6:37 BofA downgraded SPWR to Neutral from Buy with a $105 tgt based on valuation. The firm says despite SPWR’s positive attributes, their DCF-derived price target of $105 also reflects several important risks, including FY08 polysilicon supply (1/2 from new entrants), polysilicon prices, and long-term pricing pressure. The firm believes that any negative news could have a significant impact on SPWR’s share price.
08:07 SWKS Skyworks Expands Manufacturing Capacity; Partnering with Taiwanese Companies (8.71 )

Co announced that given heightened demand for its products from tier-one handset OEMs and a diverse set of analog customers, it is expanding its manufacturing capacity. The Company is also complementing its internal manufacturing capabilities by expanding partnerships with several leading Taiwanese foundries. This hybrid expansion model requires no additional ‘bricks and mortar,’ will cost substantially less than building a new stand-alone facility, and allows Skyworks to meet surge demand with a high degree of flexibility.
08:07 LYO Lyondell Chem reports Q3 (Sep) results, beats on revs (47.20 )

Reports Q3 (Sep) earnings of $0.78 per share, may include gains and charges, may not be comparable to the Reuters Estimates consensus of $1.03; revenues rose 27.0% year/year to $7.38 bln vs the $6.85 bln consensus. Quarter to date, co’s refining spreads are slightly less than the Q3 average as our heavy crude advantage has partially offset declines in base refining margins. In the ethylene, co- products and derivatives segment, record high raw material costs are offsetting the benefit of recent price increases, necessitating further pricing initiatives. In our propylene oxide and related products segment, oxygenated fuel (MTBE/ETBE) margins have declined following typical seasonal patterns.
08:06 PLD ProLogis beats by $0.21; guides FY07 EPS in-line; guides FY08 EPS above consensus (70.44 )

Reports Q3 (Sep) funds from operations of $1.41 per share, $0.21 better than the Reuters Estimates consensus of $1.20. Co issues in-line guidance for FY07, sees FFO of $4.40-4.50 vs. $4.45 consensus. Co issues upside guidance for FY08, sees FFO of $4.65-4.85 vs. $4.58 consensus. Chief Investment Officer comments, “We continue to achieve strong lease up in our pipeline of recently completed projects and properties under development. As a result of strong customer demand and leasing, we have increased our guidance for expected 2007 development starts to between $3.8 and $4.0 billion, up from our guidance of $3.4 to $3.6 billion just last quarter.”
08:06 IKN prelim $0.23 vs $0.22 Reuters consensus; revs $1.1 bln vs $1.05 bln Reuters consensus

08:06 GNTA Genta Completes Appeal of FDA Decision for Genasense in CLL: Submission Seeks Approval of Genasense in Relapsed/Refractory Patients (1.10 )

Company has completed the filing of the Company’s formal appeal to Dr. Janet Woodcock, Acting Director of the Center for Drug Evaluation Research (CDER), at the FDA. The appeal asks that CDER approve the use of Genasense Injection plus chemotherapy for patients with relapsed/refractory chronic lymphocytic leukemia (CLL)… Responses to CDER appeals are typically made within 30 to 60 days.
08:06 GOOG Google: Nollenberger notes analyst day light on news; highlights significant opportunity ahead (675.82 ) -Update-

Nollenberger notes they attended GOOG’s analyst day and came away impressed with the co’s growth strategy. Firm believes there remains further upside for both the fundamentals and the share price. Nothing dramatically new was revealed at the event, however (no Gphone). Firm notes GOOG hammered home its message of executing on its three pillars of growth: search, ads, and apps. While GOOG briefly discussed its mobile opportunity, there was clearly no announcement of a Google-branded phone, or Gphone. Firm continues to believe that GOOG is largely testing the waters in this area and will enter the mobile market through partnerships with other handset manufacturers and carriers.
08:06 SLGN sees FY07 $3.20-3.30 vs $3.31 Reuters consensus

08:06 JNS Janus Capital beats by $0.02, misses on revs (32.40 )

Reports Q3 (Sep) earnings of $0.29 per share, $0.02 better than the Reuters Estimates consensus of $0.27; revenues rose 4.2% year/year to $284.6 mln vs the $296.4 mln consensus.
08:06 TIE Titanium Metals and Carpenter Technology Enter Into Long-Term Joint Supply and Processing Agreements (33.25 )

Carpenter and Titanium Metals (TIE) announce joint agreements under which Carpenter will provide specialized titanium conversion processing to TIMET and TIMET will supply Carpenter with titanium and scrap melting services.
08:06 SUPG SuperGen: Data Show SuperGen’s Multi-Targeted Tyrosine Kinase Inhibitor Demonstrates Synergy with DNA Damaging Agents (4.09 )

These pre-clinical studies with MP470 support our clinical development plan of MP470 in combination with well established chemotherapy regimens. DNA repair plays an important role in chemotherapy drug resistance, and MP470 has the potential to enhance the activity of these regimens. Based on this data, as well as its favorable pre-clinical toxicology profile, we are excited to advance MP470 into combination trials later this year.
08:05 EGN Energen announces that McManus is elected Chairman (58.74 )

Co announces that James McManus II, has been elected the next Chairman of the Board and its two operating subsidiaries, Energen Resources Corporation and Alabama Gas Corporation. McManus, a member of the Board since 2006, will begin his tenure as Chairman on January 1, 2008. He will continue to serve as Chief Executive Officer of Energen and its subsidiaries as well as President of Energen and Energen Resources. McManus succeeds Wm. Michael Warren Jr., 60, who will retire as Chairman at the end of 2007; Warren, Energen’s former CEO and President, will remain on the Board.
08:05 SLGN prelim $1.26 vs $1.24 Reuters consensus, $1.23 First Call; revs $904 mln vs $895.59 mln Reuters consensus

08:05 LCC prelim $1.96 vs $1.71 Reuters consensus; revs $3.04 bln vs $3.04 bln Reuters consensus

08:05 ALK Alaska Air beats by $0.10, reports revs in-line (25.57 )

Reports Q3 (Sep) earnings of $2.03 per share, excluding non-recurring items, $0.10 better than the Reuters Estimates consensus of $1.93; revenues rose 6.3% year/year to $995.1 mln vs the $986.3 mln consensus.
08:04 HAR Harman: Initiation details (84.06 )

As mentioned at 7:06 BofA reinstated coverage of HAR with a Neutral from Buy and cuts their tgt to $88 from $115 saying they don’t expect a quick margin recovery on the automotive business as a significant portion of the revenue growth in the 08-09 timeframe comes from lower margin mid-level infotainment systems. The firm expects operating margins to increase only to 9.6% in FY09E from 9.3% in FY08E as a 100bps decline in operating expense as a percentage of sales is offset by a 70 bps decline in gross margins.
08:04 BWA sees FY07 $4.73-4.83 includes items vs $4.79 Reuters consensus

08:04 ALK prelim $2.03 vs $1.93 Reuters consensus, $1.92 First Call; revs $995.1 mln vs $986.26 mln Reuters consensus

08:04 FSS prelim $0.10 vs $0.21 Reuters consensus; revs $307 mln vs $312.66 mln Reuters consensus

08:04 DDE prelim $0.23 vs $0.22 Reuters consensus; revs $64.6 mln vs $64.94 mln Reuters consensus

08:03 CRIS Curis announces data that supports a potential mechanism of action for CUDC-101 (1.09 )

08:03 ROSE Rosetta Resources announces court denied the motion to dismiss (17.88 )

Co announces that the Bankruptcy Court for the Southern District of New York issued its ruling on ROSE’s motion to dismiss Calpine’s fraudulent conveyance Complaint. While the Court did not opine on ROSE’s legal arguments, the Court denied the motion to dismiss on the ground that it is uncertain at this time as to whether Calpine’s creditors will receive a full recovery on their claims. The Court also ruled that ROSE’s other arguments are premature at this time, since the Court is required by law to accept as true all allegations in the Complaint for purposes of addressing Rosetta’s motion. ROSE intends to continue to vigorously defend against Calpine’s claims, and will continue to highlight for the Court the deficiencies in Calpine’s claims against ROSE.
08:03 BWA prelim $1.13 vs $1.05 Reuters consensus, $1.05 First Call; revs $1.31 bln vs $1.20 bln Reuters consensus

08:03 DVD prelim $0.14 vs $0.13 Reuters consensus; revs $41.0 mln vs $41.30 mln Reuters consensus

08:03 XMSR XM Satellite comment on SIRI merger

“We remain optimistic that our deal to merge with Sirius will close by the end of this year. In the meantime, we continue to work with the Federal Communications Commission and the Department of Justice to further demonstrate that this merger is in the public interest and should be approved.”
08:03 WMAR sees Y07 direct channel sales of $681-684 mln vs $683-688 mln previous guidance

08:03 LYO prelim $0.78 may not be comparable to $1.03 Reuters consensus; revs $7.39 bln vs $6.85 bln Reuters consensus

08:03 FORM FormFactor tgt cut to $40 at CIBC (43.24 )

CIBC cuts their tgt on FORM to $40 from $50 and is lowering their ‘07/’08 ests to $1.40/$1.50 on abysmal earnings. What a difference a qtr makes: Q2 results/Q3 guidance validated firm’s bull thesis; Q3 results/Q4 guidance affirm the bear thesis. Stock now broken, but firm believes it is fixable longer term.
08:03 GHL prelim $1.25 vs $0.85 Reuters consensus; revs $119.4 mln vs $96.08 mln Reuters consensus, $92.57 mln First Call

08:02 LYO prelim $0.78 vs $1.03 Reuters consensus; revs $7.39 bln vs $6.85 bln Reuters consensus

08:02 XMSR prelim ($0.47) vs ($0.45) Reuters consensus; revs $287.45 mln vs $287.23 mln Reuters consensus

08:02 WMAR sees FY07 $0.14-0.18 vs $0.32 Reuters consensus

08:02 SXE Stanley awarded $8 mln task order under FIRST contract to support U.S. Army Reserve command (27.68 )

Co announces the award of an $8 mln, four-year Field and Installation Readiness Support Team contract, to continue its support of the U.S. Army Reserve Command Fleet Management System.
08:02 PNW prelim $1.97 vs $1.57 Reuters consensus; revs $1.03 bln vs $939.00 mln Reuters consensus

08:02 AVRX Avalon Pharma announces beta-catenin pathway inhibitors demonstrate significant tumor growth inhibition (5.04 )

Co announced that compounds from its Beta-catenin pathway inhibitor program demonstrated significant tumor growth inhibition in multiple animal models. The results will be presented today at the AACR-NCI-EORTC International Conference on Molecular Targets and Cancer Therapeutics. “The Beta-catenin pathway is well validated and clinically important but historically has been very elusive… Using AvalonRx, our proprietary drug discovery and development platform, we identified structurally distinct orally available compounds that inhibit the Beta-catenin pathway, and have optimized one of the identified compound families to have significant activity in preclinical colon cancer models. We anticipate nominating a lead compound in 2008 which we will advance into IND enabling studies.”
08:02 LIFC sees FY07 $0.80-0.82 vs $0.81 Reuters consensus; sees revs $185-189 mln vs $187.21 mln Reuters consensus

08:01 LTM sees FY07 $1.76-1.78 vs $1.76 Reuters consensus; sees revs $652-657 mln vs $657.28 mln Reuters consensus

08:01 AVT sees Q2 $0.83-0.87 vs $0.81 Reuters consensus; sees revs $4.45-4.65 bln vs $4.57 bln Reuters consensus

08:01 SEIC prelim $0.37 vs $0.34 Reuters consensus; revs $349.63 mln vs $345.70 mln Reuters consensus

08:01 WMAR prelim $0.24 vs $0.19 Reuters consensus; revs $187.5 mln vs $186.68 mln Reuters consensus

08:01 GD General Dynamics tgt raised to $98 at CIBC (90.00 )

CIBC raises their tgt on GD to $98 from $90. Firm notes GD’s 3Q07 easily topped ests with EPS of $1.34 vs. their consensus-matching $1.25, with $0.05 of upside from core operations and the balance from lower taxes/interest. Sales (+13% y/y) were a near match for their est, but margins tracked more than 40bps ahead of ests.
08:01 TEVA Teva Pharm announeces that study showed patients using COPAXONE had significantly lower risk of relapse and lower medical costs compared to using rebif in relapsing-remitting multiple sclerosis (44.20 )

A retrospective study comparing outcomes of relapsing-remitting multiple sclerosis patients treated either with COPAXONE or high-dose interferon beta-1a demonstrated that patients continuously treated with COPAXONE had a significantly lower risk of relapse and experienced significantly lower two-year total medical costs than those continuously treated with interferon beta-1a.
08:01 LFL Lan Airlines S.A. downgraded to Equal Weight from Overweight at Morgan Stanley (16.20 )

08:01 HHS prelim $0.30 vs $0.32 Reuters consensus; revs $286.7 mln vs $291.4 mln Reuters consensus

08:01 PMTI prelim $0.27, ex items vs $0.24 Reuters consensus; revs $31.4 mln vs $31.58 mln Reuters consensus

08:01 LIFC prelim $0.21 vs $0.20 Reuters consensus; revs $47.6 mln vs $46.36 mln Reuters consensus

08:01 AVT prelim $0.69 vs $0.68 Reuters consensus; revs $4.1 bln vs $4.12 bln Reuters consensus

08:01 LTM prelim $0.48 vs $0.46 Reuters consensus; revs $169.5 mln vs $169.70 mln Reuters consensus

08:01 STP Suntech Power announces $1.5 bln 7-year Polysilicon purchase contract with Asia Silicon (46.15 )

Co announces that it has entered into a definitive contract with Asia Silicon to purchase high purity polysilicon from Asia Silicon with a total value of up to $1.5 bln over a seven-year period. The polysilicon supplied by this agreement during the seven-year period is subject to the acceptance of product deliveries and other conditions. The contract provides for the delivery of a volume range of polysilicon each year at fixed prices, using a take-or-pay approach, with delivery beginning in the second half of 2008. A predetermined annual price reduction curve will provide Suntech with high purity polysilicon at prices lower than any of Suntech’s other contracts.
08:01 India to allow issue of P-notes only to regulated entities - Bloomberg

India says measures ‘not last set of rules’ for overseas funds.
08:00 RTIX prelim $0.01 vs $0.01 Reuters consensus; revs $23.8 mln vs $23.19 mln Reuters consensus

08:00 S&P futures vs fair value: +4.0. Nasdaq futures vs fair value: +11.6.

The stock market is expected to start the session on a high note. Motorola (MOT) and Aetna (AET) topped their earnings expectations. Symantec (SYMC) beat its earnings estimates, but issued downside guidance. Dow Chemicals (DOW) fell short of its earnings estimates. The durable goods and initial jobless claims economic reports will be released at 8:30 ET
08:00 UST sees FY07 $3.42 vs $3.39 Reuters consensus

07:59 VAR Varian Medical tgt raised to $53 at CIBC; clean Q4 shows VAR still the ace in this mkt (43.20 )

CIBC notes Q4 was clean all around, with sales and EPS beating handily, worldwide orders up 17% (Oncology up 11%), and the security business taking off ($80 mln in LTM orders). With two new products at ASTRO next week, and two upcoming quarters of easy WW order comps (2%), VAR looks like a very good buy. Firm raises their tgt to $53 from $51.
07:59 UST prelim $0.90, ex items vs $0.81 Reuters consensus; revs $479.6 mln vs $473.59 mln Reuters consensus

07:58 CPB Campbell’s Godiva auction in second round; getting interest from retailers, banker says - FT Mergermarket (35.66 )

FT Mergermarket reports Second-round bids on Campbell Soup’s Godiva chocolate business came in two weeks ago, a number of bankers claiming knowledge of the situation told mergermarket. A number of retailers are in the process, one of the bankers said. It’s unclear which retailers have bid for Godiva, but Starbucks (SBUX) is rumoured to be in the process, two of the three bankers said, adding that they had no direct knowledge of Starbucks’ interest in Godiva. Lindt & Sprungli and Nestle are still in the process as well, and are working with investment banks, according to the three bankers.
07:57 FBR Friedman Billings reports Q3 EPS of ($1.2 vs ($0.39) in 3Q06; revs declined 24% YoY to $62.3 mln - no ests (4.26 )

“Economic exposure to our securitized, non-recourse mortgage loan portfolio has been eliminated, and our remaining exposure to FNLC is $12 million… With nearly $500 million in cash and highly liquid securities in addition to our 52% ownership of FBR Capital Markets, our risk profile is significantly reduced. Going forward, we are pleased to have the financial flexibility to execute our core agency mortgage backed security strategy through which we believe we will be able to achieve very acceptable returns.”
07:57 AMGN Amgen: Color on quarter (58.13 )

Rodman & Renshaw notes AMGN reported 3Q07 non-GAAP EPS of $1.08, solidly beating firm’s and the Street consensus of $0.97 and $1.02, respectively. Total product revs of $3.524 bln were in line with their est of $3.526 bln, but exceeded the Street’s expectation of $3.488 bln. Total expenses of $2.088 bln were lower than their and the Street ests of $2.131 bln and $2.262 bln, respectively. COGS and R&D were $24mm and $77mm less than we expected, while SG&A expense came in $34mm above our estimates for the quarter. 3Q07 GAAP EPS reflects charges amounting to a $1bil write-off of in-process R&D from the Alantos and Ilypsa acquisitions… Friedman Billings notes AMGN reported an in-line 3Q last night, with EPS of $1.08 vs expectations of $1.03; the beat was due to lower expenses as revs of $3. bln were in line. U.S. Aranesp sales declined 20% QoQ in 3Q despite the recent NCD not having yet taken full effect; worldwide sales of $818 mln were in line with the Street. For Aranesp, firm continues to project a significant decline in U.S. sales as the full effect of the NCD is realized. For 4Q, they are at $360 mln (26% decline over 3Q), roughly $30 mln below the Street. Firm would remind investors that additional risk remains as private payors (which make up 60% of Aranesp’s oncology business) — in addition to Aetna — may follow the CMS’s lead and begin tightening their guidelines; this could happen following the upcoming FDA label decision for Aranesp.
07:55 SO Southern Co beats by $0.01, beats on revs; guides FY07 EPS in-line (35.72 )

Reports Q3 (Sep) earnings of $1.00 per share (including synfuel), $0.01 better than the Reuters Estimates consensus of $0.99; revenues rose 6.2% year/year to $4.83 bln vs the $4.73 bln consensus. Co issues in-line guidance for FY07, sees EPS of $2.18-2.25 (including synfuel) vs. $2.19 consensus.
07:55 SYPR Sypris Solutions misses by $0.06, misses on revs; guides Q4 EPS above consensus, revs in-line (8.61 )

Reports Q3 (Sep) loss of $0.15 per share, excluding non-recurring items, $0.06 worse than the Reuters Estimates consensus of ($0.09); revenues fell 17.0% year/year to $104.5 mln vs the $110 mln consensus. Co issues guidance for Q4, sees EPS of $0.00-($0.05) vs. ($0.07) consensus; sees Q4 revs of $107-112 mln vs. $112.25 mln consensus.
07:55 GRMN Garmin estimates raised at CIBC ahead of earnings (121.81 )

CIBC is raising their 3Q07 rev and EPS estimates to $714 mln and $0.90 (consensus $681 mln and $0.81) respectively, and believe that the stock will continue to enjoy solid momentum through next Wednesday’s earnings report. They believe 3Q seasonality will likely be less pronounced this year than last. Though the U.S. PND market went through its typical summer softening, they believe Europe, where GRMN gained share in July and August, saw a solid double-digit increase in both volume and revenue.
07:54 SKX Skechers USA upgraded to Buy at Brean Murray- tgt $26 (21.94 )

Brean Murray upgrades SKX to Buy from Hold with a $26 tgt despite a relatively weak retail environment, the firm is excited to see that Skechers is firing on all cylinders. The firm attributes this to solid product offerings, impressive international growth, as well as a strong presence at family footwear chains such as Famous Footwear, which appear to be outperforming many other footwear retailers.
07:54 PGIC Progressive Gaming initiated with a Buy at Brean Murray- tgt $8.50 (4.77 )

Brean Murray initiates PGIC with a Buy and an $8.50 tgt as its emerging slot bonusing and table game systems provide technology that is poised to gain widespread adoption throughout the gaming industry. The firm believes it is only a matter of time until Table I.D with RFID becomes the dominant system for the tracking and rewarding of play on the 50,000 table games worldwide and a significant percentage of the 900,000 slots in North America link to PGI’s bonusing system.
07:54 GOOG Google: Jefferies comments on analyst day, MSFT/Facebook announcement (675.82 )

Jefferies notes that GOOG held an upbeat Analyst Day yesterday. While no numbers were discussed, they say a deep bench of product line heads presented a robust pipeline of new products and monetization improvement opportunities, suggesting that Google continues to have ample headroom for growth. While Google lost Facebook to Microsoft (MSFT), they don’t view this as a major disappointment given the price tag which, according to media reports, values Facebook at $15 bln (with MSFT taking a 1.6% share). Reits Buy and $725 tgt.
07:54 HBI Hanesbrands beats by $0.01, beats on revs (25.77 )

Reports Q3 (Sep) earnings of $0.48 per share, excluding non-recurring items, $0.01 better than the Reuters Estimates consensus of $0.47; revenues rose 3.1% year/year to $1.15 bln vs the $1.13 bln consensus.
07:53 RNOW Rightnow Tech: Solid 3Q07; seemd worst of transition is behind - FBR (16.85 ) -Update-

Friedman Billings notes RNOW reported solid 3Q07 results with upside to revs, EPS, and free cash flow. It appears the co has passed the worst of its transition to an all-subscription-based model as sales productivity improved, particularly in N.America. As such, they believe the co can take better advantage of its RightNow 8 product cycle. Firm’s recent customer discussions have been very positive, suggesting to them that the RightNow 8 product cycle is off to a good start. Firm continues to believe RightNow 8 expands the co’s addressable market by attracting new business, particularly from large enterprises, as well as presenting up-sell opportunities to its installed base.
07:53 SOHU Sohu.com EPS estimates raised at Susquehanna (46.20 ) -Update-

07:51 WCG WellCare Group: Wachovia comments on yesterday’s search warrant; says AGP confirmed that they have not received any requests from government agencies (115.17 ) -Update-

Wachovia notes that yesterday Federal and state officials executed a search warrant on WCG’s Tampa, Florida headquarters. The FBI, Florida Attorney General’s Medicaid fraud unit, and the Department of Health and Human Services were involved with the search. Firm notes the co told them they have not received enough information from authorities to discern what the investigation or search relates to. Firm was told that no one has been arrested and that employees have been allowed access to the H.Q. The firm suspects the issue is company specific. They note that Amerigroup (AGP) is the only other company they cover that operates in the Florida Medicaid program, and they confirmed that they have not received any requests from government agencies. They say it is impossible to analyze the potential impact of the search warrant and any related investigations, and would stay on the sidelines.
07:50 RTN Raytheon beats by $0.05, reports revs in-line; reaffirms FY07 guidance; guides FY08 EPS and revs below consensus (65.33 )

Reports Q3 (Sep) earnings of $0.86 per share, excluding $0.16 non-recurring charge, $0.05 better than the Reuters Estimates consensus of $0.81; revenues rose 8.5% year/year to $5.36 bln vs the $5.36 bln consensus. Co reaffirms guidance for FY07, sees EPS of $3.05-3.20 vs. $3.24 consensus; reaffirms FY07 revs of $20.8-21.3 bln vs. $21.81 bln consensus. Co issues downside guidance for FY08, sees EPS of $3.45-3.65 vs. $3.77 consensus; sees FY08 revs of $22.1-22.6 vs. $23.34 bln consensus.
07:50 MDCO The Medicines Co: Better than expected HORIZONS results increase confidence in the long term sales potential for Angiomax - RBC (17.80 )

RBC says better than expected HORIZONS results increase their confidence in the long term sales potential for Angiomax for MDCO. Starting in mid-2008, firm believes Angiomax sales could benefit from an expanded label in ACS, a market presence in Europe, and potential addition to the treatment guideline for AMI. However, ongoing weakness in the cath lab market continues to drag down Angiomax sales, and their 2007 forecast remains below guidance. Firm believes MDCO shares are somewhat attractive given current low expectations for Angiomax, a reasonable valuation, and the option value of the ongoing legislative process to extent Angiomax patent life.
07:50 HBI prelim $0.48, ex items vs $0.47 Reuters consensus; revs $1.15 bln vs $1.13 bln Reuters consensus

07:49 SPAR Spartan Motors misses by $0.15, misses on revs; declares special dividend of $0.03 (17.12 )

Reports Q3 (Sep) earnings of $0.08 per share, $0.15 worse than the Reuters Estimates consensus of $0.23; revenues rose 36.7% year/year to $148.9 mln vs the $178.8 mln consensus. Co announced its board of directors declared a special dividend of $0.03 per share. “As we look forward, the third quarter should be an anomaly in our 2007 results, and we are anticipating the fourth quarter will be more in line with our results in the first two quarters of the year. We made significant progress and remain bullish about our potential based on our current momentum and the build up we anticipate through the end of 2007 and into 2008. We are resolving the production challenges, are in a good position to execute using our expanded production capacity, and see higher run rates to absorb our increased overhead and orders.”
07:49 AAPL Apple: Mossberg reviews Leopard in WSJ (185.93 )

WSJ reports the Mac is on a roll. Apple’s perennially praised but slow-selling Macintosh computers have surged in popularity in the past few years, with sales growing much faster than the overall PC mkt, especially in the U.S. By some measures, Mac laptops are now approaching a 20% share of U.S. noncorporate sales, up from the low single digits where they once seemed stuck. In my view, Leopard is better and faster than Vista, with a set of new features that make Macs even easier to use. For me, the marquee features in Leopard are a new function called Time Machine that automatically backs up your entire computer in the background; two new methods, called Cover Flow and Quick Look, for rapidly viewing the contents of files without opening any programs; and new techniques that allow you to access the files in, and to remotely control, other computers on your network or connected over the Internet with a few clicks and no technical expertise. I did notice a few drawbacks, but they were minor. While Apple claims the new system includes more than 300 new features, there is nothing on the list that could be considered startling or a major breakthrough. Leopard isn’t a must-have for current Mac owners, but it adds a lot of value. For new Mac buyers, it makes switching even more attractive.
07:48 VIGN Vignette beats by $0.04, beats on revs; guides Q4 EPS in-line, revs in-line (16.70 )

Reports Q3 (Sep) earnings of $0.21 per share, excluding non-recurring items, $0.04 better than the Reuters Estimates consensus of $0.17; revenues fell 11.7% year/year to $43.5 mln vs the $42.7 mln consensus. Co issues in-line guidance for Q4, sees EPS of $0.19-0.26, excluding non-recurring items, vs. $0.23 consensus; sees Q4 revs of $45-50 mln vs. $47.6 mln consensus. Co says “After four consecutive quarters of strong results, we had a challenging Q3 as we experienced a significant shortfall in license revenue…We continue to take action around sales enablement, pipeline and alliances. The good news is we delivered significant positive cash flow and our 12th straight quarter of profitability.” During the quarter, Vignette purchased an additional 763,000 shares of stock on the open market at an average price of $19.30.
07:48 LLL L-3 Comms beats by $0.08, beats on revs; guides FY07 EPS in-line, revs in-line (106.03 )

Reports Q3 (Sep) earnings of $1.56 per share, $0.08 better than the Reuters Estimates consensus of $1.48; revenues rose 11.0% year/year to $3.45 bln vs the $3.38 bln consensus. Co issues in-line guidance for FY07, sees EPS of $5.86-$5.90 vs. $5.88 consensus; sees FY07 revs of $13.7 bln vs. $13.7 bln consensus.
07:48 PWAV Powerwave initiated with a Buy at Morgan Joseph- tgt $8 (5.83 )

Morgan Joseph initiates PWAV with a Buy and sets an $8 tgt, based on its position as the largest stand-alone, independent wireless-focused subsystem vendor and believe certain Powerwave customers are on the verge of escalating spending efforts, which should boost near- and medium term PWAV sales and earnings.
07:48 FFIV F5 Networks: Color on quarter (40.47 )

JP Morgan notes FFIV reported a relatively in-line Q407, as revenue of $145.6M — $1.3M above our est — just hit the high-end of guidance ex-Acopia, but EPS beat our est by $0.04 as opex/sales fell to the lowest level since Dec ‘05, which we do not believe is sustainable as F5 digests Acopia and builds out its sales force. We also continue to believe F5 is heading into a transition period where growth in its core Big IP business slows and Acopia is not EPS accretive until 2010 at the earliest… RBC cuts thier tgt on FFIV to $38 from $45 following quarterly results. Firm notes base revs seem to be slowing and although Sept quarter results were strong, the midpoint of FFIV’s Dec quarter guidance of $154-$156 mln is below consensus of $156 mln. Stripping out the acquisition (est. Acopia $7 mln/quarter), FFIV may now grow just 3% sequentially having just completed 9% growth. The GAAP EPS guidance didn’t add any comfort either at $0.20-$0.21 vs. consensus of $0.23… ThinkEquity notes FFIV beat consensus ests on EPS and rev despite weakness in the important financial services vertical and confirmed its leadership in the traffic management space. They continue to be impressed by the co’s product market vision and believe that next week’s analyst day could provide a catalyst for the stock. Influenced by uncertainty in the macro environment, firm believes management issued cautious guidance. Firm believes the after-market price action has brought the stock to a compelling valution. Firm cuts tgt to $50 from $53.
07:47 QLTI QLT Inc reports Q3 (Sep) results, misses on revs; issues drug sales guidance (4.48 )

Reports Q3 (Sep) net of breakeven, includes charges, may not be comparable to the Reuters Estimates consensus of $0.05; revenues fell 24.9% year/year to $28.7 mln vs the $32.4 mln consensus. Based on recent events and current trends in Visudyne sales, QLT is projecting that Visudyne sales will range from $210 million to $216 million in 2007. Given the continued strong Eligard sales performance, the Company is now projecting that 2007 Eligard sales will be in the range of $175 million to $185 million, an increase over previously announced guidance of $160 million to $180 million.
07:47 SPAR prelim $0.08 vs $0.23 Reuters consensus, $0.23 First Call; revs $148.9 mln vs $178.78 mln Reuters consensus

07:47 TOC Thomson beats by $0.06, beats on revs (43.25 )

Reports Q3 (Sep) earnings of $0.48 per share, $0.06 better than the Reuters Estimates consensus of $0.42; revenues rose 11.0% year/year to $1.8 bln vs the $1.76 bln consensus. “We also continue to make progress related to our proposed acquisition of Reuters and believe it will enable Thomson to best capitalize on long-term trends in the marketplace,” said Harrington. “Combined, Thomson-Reuters will be able to effectively address business and financial customers’ growing demand for broader, faster and more integrated information and solutions. Our respective businesses are extremely complementary, with little overlap in either geographic presence or product offering. Together, we will have a global footprint with strong brands in North America, Europe and Asia…”
07:46 LLL sees FY07 $5.86-5.90 vs $5.88 Reuters consensus; sees revs $13.70 bln vs $13.70 bln Reuters consensus

07:46 BKHM Bookham Tech beats by $0.01, beats on revs; guides Q2 revs in-line (3.27 )

Reports Q1 (Sep) loss of $0.10 per share, $0.01 better than the Reuters Estimates consensus of ($0.11); revenues rose 20.4% year/year to $54.3 mln vs the $51.2 mln consensus. Co issues in-line guidance for Q2, sees Q2 revs of $55-58 mln vs. $55.00 mln consensus. CEO comments, “We believe our prospects are strong for further financial improvement in the December quarter. In addition to our forecasted revenue growth, we expect to see continued margin improvement with our new products and stable margins with our existing products. From the cost side, we should hit our reduction objectives by the end of December.”
07:45 LLL prelim $1.56 vs $1.48 Reuters consensus; revs $3.45 bln vs $3.38 bln Reuters consensus

07:44 HOG Harley-Davidson: Upgrade details (49.22 )

As mentioned at 6:37, Lehman upgraded HOG to Equal-weight from Underweight and raised their tgt to $52 from $46 following earnings last Friday. They believe that the steps HOG is taking to balance supply/demand and better manage dealer inventory will pay dividends beginning in 1Q08; they do not believe that the co will lose this source of financing. They say current valuation levels indicate the market is already factoring in the most negative outlook.
07:44 RHD R.H. Donnelley misses by $0.06, reports revs in-line; reaffirms FY07 revs guidance (60.83 )

Reports Q3 (Sep) earnings of $0.25 per share, $0.06 worse than the Reuters Estimates consensus of $0.31; revenues rose 27.8% year/year to $670 mln vs the $671 mln consensus. Co reaffirms guidance for FY07, sees FY07 revs of $2.68 bln vs. $2.68 bln consensus.
07:44 CMI Cummins misses by $0.09, beats on revs; reaffirms FY07 EPS guidance (133.73 )

Reports Q3 (Sep) earnings of $1.84 per share, $0.09 worse than the Reuters Estimates consensus of $1.93; revenues rose 20.0% year/year to $3.37 bln vs the $3.22 bln consensus. Co reaffirms guidance for FY07, sees EPS of $7.15-$7.65 vs. $7.70 consensus.
07:44 GR Goodrich beats by $0.08, misses on revs; cuts FY07 rev guidance; guides FY08 EPS in-line, revs in-line (69.54 )

Reports Q3 (Sep) earnings of $0.99 per share, excluding loss from discontinued ops of $0.11 as well as a gain from settlement of $0.11, $0.08 better than the Reuters Estimates consensus of $0.91; revenues rose 14.8% year/year to $1.6 bln vs the $1.62 bln consensus. Co issues guidance for FY07, sees EPS of $3.65-3.70, may include gain from settlement of $0.11 and not compare to $3.63 consensus; sees FY07 revs of $6.4-6.5 bln, down from previous company guidance of $6.5-6.6 vs. $6.54 bln consensus. Co issues in-line guidance for FY08, sees EPS of $4.15-4.30 vs. $4.17 consensus; sees FY08 revs of $7.1-7.2 bln vs. $7.1 bln consensus.
07:43 AEIS Advanced Energy: Color on quarter (15.83 )

BofA notes AEIS reported Dec sales slightly above firm’s ests (midpoint down 3% QoQ). But given the seasonal up-tick in semi OEM orders, they expect AEIS 1HCY08 sales to grow. Firm has slightly increased their FY08 ests from $0.77 to $0.80. Firm likes AEIS strategy of diversifying into the solar business with both their legacy power products and their inverter business. As the solar market grows over the next few years, they expect solar to grow to over 20% of their business with potential to offset semi cycle weakness… Citi notes that while another cut to ests likely keeps pressure on the stock near-term, AEIS continues to build a case as a longer-term solar story that they think should begin to become more transparent as they get further into C2008. Firm notes F2007 EPS is essentially unchanged, but trimming F2008 from $1.25 to $0.94 on weaker semi capex trends. Firm maintains Hold, target unchanged at $23 on better solar revs in C2008 and higher sum-of-parts solar multiple… JP Morgan notes AEIS reported C3Q07 rev/EPS of $90.5 mln/$0.14, in line with its negative 3Q07 pre-announcement. Firm expected C4Q07 rev to be “flattish” with C3Q07 and guidance is $86-$90.0 mln, down modestly on somewhat weaker-than-expected C3Q07 orders from semiconductor equipment OEMs. However, two of AEIS’s major customers, Lam Research and Novellus both called a new cycle with expectations for up orders in C4Q07 and up shipments in C1Q08. As such, firm expects C1Q08 to be the first up rev quarter for AEIS for the next cycle.
07:43 DAI Daimler: Chrysler UAW contract wins crucial backing - Reuters (106.31 ) -Update-

Reuters reports three Chrysler LLC plants in the Detroit area on Wednesday voted to approve a proposed four-year contract for workers represented by the United Auto Workers union, boosting the chance that the contested labor pact will be ratified this week. More than 9,000 Chrysler workers at four major Detroit-area plants voted on Wednesday on the proposed contract, which had run into unexpectedly fierce opposition from union dissidents. Based on the reported plant-by-plant voting results, the contract appeared closer to ratification by late Wednesday after a tough-fought contest that had been in danger of slipping away from UAW leadership a day earlier.
07:43 CINF Cincinnati Fincl downgraded to Hold from Buy at Keybanc- following earnings and based on greater than expected deterioration in the fundamentals of CINF’s markets (39.88 )

07:43 BMY Bristol-Myers beats by $0.02, reports revs in-line; guides FY07 EPS in-line; guides FY08 EPS in-line (28.42 )

Reports Q3 (Sep) earnings of $0.38 per share, excluding non-recurring items, $0.02 better than the Reuters Estimates consensus of $0.36; revenues rose 21.6% year/year to $5.05 bln vs the $5.02 bln consensus. Co issues in-line guidance for FY07, sees EPS of $1.42-1.47, excluding non-recurring items, vs. $1.44 consensus. Co issues in-line guidance for FY08, sees EPS of $1.60-1.70 vs. $1.69 consensus.
07:42 NAVZ Navistar releases unaudited restated 2003-2005 financial data; reaffirms 2009 revenue growth and margin targets (68.85 )

NAVZ.PK released summary preliminary and unaudited results for fiscal years ended October 31, 2003, 2004 and 2005, marking progress toward becoming a current filer with the Securities and Exchange Commission. Navistar’s senior management also provided the company’s third quarter 2007 operating metrics and reaffirmed its commitment to 2009 growth and pro forma segment margin targets. “This is a significant milestone toward becoming current in our SEC filings and toward the relisting of our stock on a major exchange. We are committed to thorough and accurate financial reporting for our shareholders and investment community and to guide our business decisions.” Navistar also announced that it is in discussions with GM about a plan for Navistar to acquire GM’s medium-duty truck business, including the rights to manufacture GMC and Chevrolet brand trucks.
07:42 LLY Eli Lilly downgraded to Underweight from Equal Weight at Morgan Stanley (56.15 ) -Update-

07:41 EME EMCOR Group beats by $0.08, beats on revs; guides FY07 EPS above consensus, revs above consensus (31.12 )

Reports Q3 (Sep) earnings of $0.55 per share, $0.08 better than the Reuters Estimates consensus of $0.47; revenues rose 21.1% year/year to $1.5 bln vs the $1.44 bln consensus. Co issues upside guidance for FY07, sees EPS of $1.75-1.80, compared to previous guidance of $1.48-1.60, vs. $1.58 consensus; sees FY07 revs of $5.8 bln, compared to previous guidance of $5.5-5.7 bln, vs. $5.71 bln consensus.
07:40 CELG Celgene beats by $0.01, misses on revs; guides FY07 EPS in-line, revs in-line (70.18 )

Reports Q3 (Sep) earnings of $0.29 per share, $0.01 better than the Reuters Estimates consensus of $0.28; revenues rose 43.0% year/year to $350 mln vs the $369.3 mln consensus. Co issues in-line guidance for FY07, sees EPS of $1.05 vs. $1.06 consensus; sees FY07 revs of $1.375 bln vs. $1.42 bln consensus. Co reports Revlimid sales of $199 mln vs. $175 mln Street Expectation. Co reports Thalomid sales of $111 mln vs. $102 mln Street expectation.
07:40 RNOW Rightnow Tech upgraded to Buy at Roth Capital- tgt raised to $20 from $17 (16.85 ) -Update-

Roth Capital upgrades RNOW to Buy from Hold and raises their tgt to $20 from $17, following Q3 revenue and EPS that was above firm estimates and raised Q4 guidance.
07:40 MATR Matria Healthcare reports EPS in-line, revs in-line; guides Q4 EPS in-line, revs in-line

Reports Q3 (Sep) earnings of $0.27 per share, in-line with the Reuters Estimates consensus of $0.27; revenues rose 6.4% year/year to $89.6 mln vs the $90.2 mln consensus. Co issues in-line guidance for Q4, sees EPS of $0.30-0.34 vs. $0.32 consensus; sees Q4 revs of $91.5-93.0 mln vs. $92.96 mln consensus. “As we mentioned in our last quarter earnings call and press release, achieving the high end of our Q4 range was dependent upon receiving a large health plan award early enough to impact Q4. While our health plan opportunities are still very viable and we are adding to them, we will not be implementing any of these opportunities early enough to put us in the high end of the range previously given.”
07:40 OBAS Optibase Ltd. postpones third quarter 2007 results (3.45 )

Co announces that it is postponing the release of its Q3 financial results and the corresponding conference call. The postponement comes as a result of Amir Philips, OBAS’s CFO, being involved in an accident. While Phillips’ injuries are not considered serious, they did result in a brief hospitalization. The co expects to announce a new date for its Q3 results and conference call shortly.
07:40 EL Estee Lauder beats by $0.09, reports revs in-line; guides Q2 EPS above consensus; reaffirms FY08 EPS guidance (43.32 )

Reports Q1 (Sep) earnings of $0.20 per share, $0.09 better than the Reuters Estimates consensus of $0.11; revenues rose 7.3% year/year to $1.71 bln vs the $1.7 bln consensus. Co issues upside guidance for Q2, sees EPS of $1.10-1.17 vs. $1.05 consensus; co sees net sales to grow 10-12% in constant currency. Co reaffirms guidance for FY08, sees EPS of $2.28-2.40 vs. $2.35 consensus; co sees net sales to grow 7-9% in constant currency.
07:39 SSP EW Scripps beats by $0.09, beats on revs; guides Q4 EPS in-line (42.41 )

Reports Q3 (Sep) earnings of $0.50 per share, excluding non-recurring items, $0.09 better than the Reuters Estimates consensus of $0.41; revenues rose 2.2% year/year to $596 mln vs the $583.6 mln consensus. Co issues in-line guidance for Q4, sees EPS of $0.68-0.72 vs. $0.68 consensus.
07:39 ICE IntercontinentalExchange beats by $0.04, beats on revs (175.48 )

Reports Q3 (Sep) earnings of $0.93 per share, $0.04 better than the Reuters Estimates consensus of $0.89; revenues rose 60.2% year/year to $151.7 mln vs the $149.7 mln consensus. The increase in transaction revenue was driven primarily by the addition of ICE Futures U.S. and implementation of around-the-clock electronic trading in its markets, strong trading volume in the futures and global OTC business segments, and the entry of new participants in ICE’s markets.
07:39 TKR Timken misses by $0.12, reports revs in-line; guides FY07 EPS below consensus (36.99 )

Reports Q3 (Sep) earnings of $0.51 per share, excluding non-recurring items, $0.12 worse than the Reuters Estimates consensus of $0.63; revenues rose 6.3% year/year to $1.26 bln vs the $1.25 bln consensus. Co issues downside guidance for FY07, sees EPS of $2.40-2.50, excluding non-recurring items, vs. $2.67 consensus.
07:39 RHD affirms its full year 2007 guidance last updated on Sept 27, 2007

07:39 MAS Masco downgraded to Underweight from Equal Weight at Morgan Stanley (23.29 )

07:39 DAI Daimler posts 3Q loss of $2.18 bln - Houston Chronicle (106.31 )

Houston Chronicle reports the co posted a loss of $2.18 bln for the 3Q, largely because of write-offs related to the Chrysler deal. Analysts had expected a loss, given the Chrysler sale. The 1.53 bln euro figure compared to a profit of 868 mln euros a year earlier. Excluding the one-time charges, the co said it would have posted profits of 1.1 bln euros ($1.57 bln). Daimler said in a statement that the entire transaction has so far cost 2.6 bln euros ($3.7 bln) in the third quarter, which is below the 3 bln euros ($4.27 bln) it had anticipated. The entire loss including effects in future quarters, is expected to reach 2.5 bln euros ($3.56 bln), the co said.
07:38 AATI Advanced Analogic Tech initiated with a Buy at ThinkEquity- tgt $15 (11.72 )

ThinkEquity initiates AATI with a Buy and a $15 tgt saying the co appears positioned to gain share with more tier-one customers in a range of applications as the co ramps products across a range of performance and cost specs.
07:37 RHD prelim $0.25 vs $0.31 Reuters consensus; revs $670 mln vs $670.99 mln Reuters consensus

07:37 GR sees FY08 $4.15-4.30 vs $4.17 Reuters consensus; sees revs $7.1-7.2 bln vs $7.10 bln Reuters consensus

07:37 CNX CONSOL Energy reports Q3 (Sep) results, beats on revs (50.04 )

Reports Q3 (Sep) loss of $0.03 per share, includes gains and charges, may not be comparable to the Reuters Estimates consensus of $0.23; revenues rose 3.0% year/year to $868.4 mln vs the $792.1 mln consensus. Co sees Y07 coal production of 64.8-66.8 mln tons, with an average realized price per ton of $40.68.
07:37 GR sees FY07 $3.65-3.70 may include gain, may not compare to $3.63 Reuters consensus; sees revs $6.4-6.5 bln vs $6.54 bln Reuters consensus

07:36 ESI ITT Educational beats by $0.06, reports revs in-line; raises FY07 EPS above consensus (122.50 )

Reports Q3 (Sep) earnings of $0.98 per share, $0.06 better than the Reuters Estimates consensus of $0.92; revenues rose 14.9% year/year to $217.9 mln vs the $219.7 mln consensus. Co issues raises guidance for FY07, to EPS of $3.65-3.68 from $3.45-3.55 vs. $3.57 consensus.
07:35 CNX prelim ($0.03) may not be comparable to $0.23 Reuters consensus; revs $868.4 mln vs $792.07 mln Reuters consensus

07:35 GR prelim $0.99 excluding charge, gain vs $0.91 Reuters consensus; revs $1.6 bln vs $1.62 bln Reuters consensus

07:35 DCO Ducommun announces $25 mln contract award for Dassault Falcon 2000 family of aircraft winglets (36.27 )

Co announces that its Ducommun AeroStructures, subsidiary has been awarded a $25 mln contract to furnish winglets for the Falcon 2000 family of jets. The initial contract will run through 2010. The program was won in cooperation with Aviation Partners and with Dassault-Aviation.
07:35 VIGN sees Q4 $0.19-0.26 vs $0.23 Reuters consensus; sees revs $45-50 mln vs $47.63 mln Reuters consensus

07:35 RTRSY Reuters Group 3Q sales increase on higher prices - Bloomberg (79.59 )

Bloomberg reports the co said 3Q sales rose 2.3%, buoyed by price increases. Revenue climbed to 646 mln pounds ($1.32 bln) from 631 mln pounds a year earlier, London-based Reuters said today in a statement. Excluding currency swings and acquisitions, revenue increased 7.6%. “Our performance has not been impacted by the turbulence in the credit markets, nor any distraction from the Thomson deal,” Reuters CEO Tom Glocer said in the statement. The co will remain “vigilant for signs of continuing market instability,” he said.
07:34 MDP Meredith upgraded to Overweight from Neutral at J.P Morgan (57.98 )

07:34 VIGN prelim $0.21 vs $0.17 Reuters consensus; revs $43.50 mln vs $42.74 mln Reuters consensus

07:34 FLIR FLIR Systems beats by $0.06, beats on revs; guides FY07 EPS above consensus, revs above consensus (58.92 )

Reports Q3 (Sep) earnings of $0.45 per share, $0.06 better than the Reuters Estimates consensus of $0.39; revenues rose 43.5% year/year to $191.1 mln vs the $180.8 mln consensus. Co issues upside guidance for FY07, sees EPS of $1.73-1.78 vs. $1.69 consensus; sees FY07 revs of $755-770 mln vs. $749.31 mln consensus.
07:34 TKR sees FY07 $2.40-2.50 vs $2.67 Reuters consensus

07:34 THRD TF Financial Corp reports EPS of $0.44, interest income rose 1.1% to $9.7 mln, no estimates (26.66 )

Co also announces that it has approved a new stock repurchase plan covering up to 200,000 shares, or 7% of shares outstanding.
07:34 QLTI prelim $0.02 vs $0.05 Reuters consensus, $0.04 First Call; revs $28.7 mln vs $32.39 mln Reuters consensus

07:34 SO sees FY07 $2.13-2.18 ex-synfuels vs $2.19 Reuters consensus

07:33 EME sees FY07 $1.75-1.80 vs $1.58 Reuters consensus; sees revs $5.80 bln vs $5.71 bln Reuters consensus

07:33 FIS Fidelity National Information Services announces pursuit of a plan to spin-off the lender processing services division (46.65 )

Co announces that its Board of Directors has approved pursuing a plan to spin-off its Lender Processing Services division into a separate publicly traded co. As currently contemplated, the co will contribute the assets of LPS into a newly formed subsidiary in exchange for 100% of Newco common stock and approx $1.6 bln of Newco debt securities. Following receipt of necessary SEC approvals and a tax-free ruling from the IRS, FIS will distribute 100% of Newco common stock to FIS shareholders in a tax-free spin off. Immediately following the spin-off, FIS will exchange the Newco debt securities it owns for a like amount of existing FIS debt through a debt-for-debt exchange that is tax-free to FIS. FIS would then retire the FIS debt that is exchanged for the Newco debt securities. Completion of the possible spin-off is expected to occur in mid-2008.
07:33 BKHM sees Q2 revs $55-58 mln vs $55.00 mln Reuters consensus

07:33 VMW VMware: Color on quarter (103.52 )

JP Morgan notes VMW reported very strong Q3 of $358 mln and $0.23 vs. consensus of $332 mln and $0.17 respectively, although $0.04 came from a lower tax rate and interest income added $0.01 vs. their expectation. Operating margin was 25.4% vs. the consensus target of 24.9% which also drove outperfomance. Cashflow was also very strong in the quarter, coming in at $160 mln, well ahead of their $91 mln even after EMC adjustments… BMO Capital Markets notes VMW’s Sept 2007 results were very close to their ests for the quarter ($358 million actual vs. $352 million for BMO), though much higher than Street ests ($333 million). EPS of $0.23 pro forma was higher than firm’s est of $0.19, and the Street of $0.17, driven almost entirely by a favorable tax rate of $0.025 per share. Firm does not see anything slowing VMW in the server virtualization market and they believe that the desktop market will emerge to support rev growth in 2H08, or perhaps earlier, though in modest amounts… Cowen notes VMW beat their top/bottom line ests and numbers go higher. But, license deferred revs were down a lot ($84 mln to $46 mln), implying a slowing in license billings. EPS goes up primarily due to lowered tax rates (23% to 16%). Virtualization represents the biggest technology trend in enterprise IT and VMWare’s valuation continues to give full credit to this opportunity. Q4 trends should be strong; however Sept results show that if seasonality is already impacting at this stage, outside of a seasonally very strong Q4, deceleration (as they model) may set in during 2008.
07:33 TKR prelim $0.51 may not be comparable to $0.63 Reuters consensus; revs $1.26 bln vs $1.25 bln Reuters consensus

07:33 EME prelim $0.55 vs $0.47 Reuters consensus; revs $1.5 bln vs $1.44 bln Reuters consensus

07:33 SSP sees Q4 $0.68-0.72 vs $0.68 Reuters consensus

07:33 SNTA Synta Pharma presents new data on Elesclomol; confirmed that the primary mechanism of action of elesclomol is through the induction of reactive oxygen species (8.19 )

Data presented at the conference confirmed that the primary mechanism of action of elesclomol is through the induction of reactive oxygen species and provided details of the sequence of events by which programmed cell death is induced. The results presented at the conference also provided evidence that elesclomol enhances the efficacy of several leading first-line cancer agents including Rituxan, Gemzar, and Taxotere, with minimal additional toxicity. Finally, the results showed that elesclomol has single agent anti-tumor activity.
07:33 BKHM prelim ($0.10) ex items vs ($0.11) Reuters consensus; revs $54.3 mln vs $51.22 mln Reuters consensus

07:33 SO prelim $0.99 vs $0.99 Reuters consensus, $4839.54 First Call; revs $4.83 bln vs $4.73 bln Reuters consensus

07:32 EL sees Q2 $1.10-1.17 vs $1.05 Reuters consensus

07:32 SSP prelim $0.50 vs $0.41 Reuters consensus, $0.42 First Call; revs $596 mln vs $583.64 mln Reuters consensus

07:32 EL sees FY08 $2.28-2.40 vs $2.35 Reuters consensus

07:32 BMY sees FY08 $1.60-1.70 vs $1.69 Reuters consensus

07:31 BMY sees FY07 $1.42-1.47 vs $1.44 Reuters consensus

07:31 EL prelim $0.20 vs $0.11 Reuters consensus; revs $1.71 bln vs $1.70 bln Reuters consensus

07:31 CFSG China Fire & Sec Grp announces $2.9 mln contract with Anshan Iron & Steel Group (13.30 )

07:31 LLY Eli Lilly downgraded to Neutral at Oppenheimer (56.15 )

Oppenheimer downgrades LLY to Neutral from Buy based on the co’s decision to suspend early stage trials with Prasugrel (antiplatelet) raises the risk profile for that key pipeline drug. The firm says this adds to a list of pipeline uncertainties at the company.
07:31 BMY prelim $0.38, ex items vs $0.36 Reuters consensus, $0.37 First Call; revs $5.1 bln vs $5.02 bln Reuters consensus

07:31 MATR sees Q4 $0.30-0.34 vs $0.32 Reuters consensus; sees revs $91.5-93 mln vs $92.96 mln Reuters consensus

07:31 TASR TASER receives follow-on orders from 3 law enforcement agencies (17.18 )

Co announces that it received significant orders from three law enforcement agencies. The first order received was from the Louisiana State Police headquartered in Baton Rouge, LA, for 700 TASER X26 Electronic Control Devices and related accessories. The second order received was from Knox County Sheriff’s Office in Knoxville, TN, for 185 TASER X26 ECDs and related accessories. The third order received was from the City of San Jose, CA, Police Department for 100 TASER X26 ECDs and related accessories. These orders were received and will ship in the Fourth Quarter of 2007.
07:31 CELG prelim $0.29 vs $0.28 Reuters consensus; revs $350 mln vs $369.25 mln Reuters consensus

07:31 STD Banco Santander Central 9-month net jumps 33%, ahead of forecast - Reuters (20.03 )

Reuters reports Santander beat forecasts with a 32.8% jump in nine-month net profit, thanks to strong growth both in Europe and Latin America, where Spain’s largest bank is buying two more lenders. Santander’s net profit came in at 6.57 bln euros ($9.35 bln), including a 566 mlon-euro capital gain from selling its remaining stake in Intesa Sanpaolo to help fund its part of a three-way takeover of ABN AMRO . Santander, which is buying two banks in Italy and Brazil in the ABN break-up, said group net interest income totalled 11.38 bln euros for the nine month period, up 23.4%. Operating profit rose 31.3% to 11.10 bln. A Reuters poll of 10 analysts had forecast Santander would make net profit of 6.44 bln euros. Net interest income was seen at 11.31 bln euros and operating profit was expected to come in at 10.81 bln.
07:31 BHE Benchmark Elec misses by $0.04; guides Q4 EPS in-line, revs in-line (21.28 )

Reports Q3 (Sep) earnings of $0.24 per share, excluding non-recurring items, $0.04 worse than the Reuters Estimates consensus of $0.28; revenues fell 12.5% year/year to $673 mln vs the $676 mln consensus. Co issues in-line guidance for Q4, sees EPS of $0.32-0.38 vs. $0.36 consensus; sees Q4 revs of $700-740 mln vs. $732.01 mln consensus.
07:31 ICE prelim $0.93 vs $0.89 Reuters consensus, $0.89 First Call; revs $151.7 mln vs $149.66 mln Reuters consensus

07:30 MATR prelim $0.27 vs $0.27 Reuters consensus; revs $89.6 mln vs $90.23 mln Reuters consensus

07:30 KVA KV Pharm announces FDA approval for Morphine ER 100 mg and 200 mg Tablets (30.07 )

Co announces that it has received approval from the FDA on its application for the 100 mg and 200 mg strengths of Morphine ER Tablets (MS Contin marketed by Purdue Pharma L.P.). This approval now allows ETHEX Corp, KVA’s wholly-owned generic/non-branded subsidiary, to offer a full line of all strengths of this product. The entire market for all strengths represents an approx $178 mln annual opportunity.
07:30 CMI prelim $1.84 vs $1.93 Reuters consensus; revs $3.37 bln vs $3.22 bln Reuters consensus

07:30 MWV MeadWestvaco beats by $0.04, misses on revs (30.94 )

Reports Q3 (Sep) earnings of $0.46 per share, $0.04 better than the Reuters Estimates consensus of $0.42; revenues rose 2.6% year/year to $1.8 bln vs the $1.85 bln consensus. For Q4, co expects total profit from the primary business segments to improve modestly compared to the prior year. Co expects solid year-over-year segment profit improvement in its Packaging Resources segment. Backlogs remain seasonally firm for the company’s key paperboard products. Costs for wood, oil-based materials and freight are expected to remain elevated in the fourth quarter. The company, however, expects to continue to overcome the impact of input cost inflation with price realizations, mix improvements and productivity gains.
07:29 MOT Motorola upgraded to Buy at Oppenheimer- tgt $23 (18.55 ) -Update-

Oppenheimer upgrades MOT to Buy from Neutral with a $23 tgt saying they view Motorola as being attractive on a free cash flow yield and Enterprise Value/Sales basis. The firm is becoming more positive regarding the co’s outlook for FY08 and beyond, due to anticipated improvements in the company’s Mobile Device portfolio, including the likely introduction of several high-end touchscreen models, designed to compete with the iPhone.
07:29 RAI Reynolds American reports EPS in-line, revs in-line; guides FY07 EPS above consensus (61.94 )

Reports Q3 (Sep) earnings of $1.21 per share, in-line with the Reuters Estimates consensus of $1.21; revenues rose 4.9% year/year to $2.3 bln vs the $2.29 bln consensus. Co issues upside guidance for FY07, sees EPS of $4.55-$4.65 vs. $4.54 consensus. “Higher pricing this year and heavy promotional spending in the fourth quarter of 2006 will contribute to an especially strong fourth-quarter comparison. In addition, we remain on track to achieve full-year productivity gains of about $85 mln against a total goal of $500 million through 2011.”
07:29 MWV prelim $0.46 vs $0.42 Reuters consensus; revs $1.8 bln vs $1.85 bln Reuters consensus

07:28 ESRX Express Scripts: Strong 3Q7 review; EPS beat by $0.03; raising ests and tgt - Broadpoint Capital (57.37 )

Broadpoint Capital notes ESRX’s 3Q7 results reflect the continuation of strong secular growth drivers, most notably on the generic drug front. Excluding nonrecurring charges, ESRX reported 3Q07 EPS of $0.60, a penny above firm’s est and $0.03 above the consensus, and up 45% Y/Y. A normalized tax rate would have added another $0.01 of upside. Firm is raising their 2007 and 2008 EPS ests to $2.31 and $2.75 from $2.28 and $2.66, respectively. Firm’s ests imply EPS growth of 19% in 2008. Guidance is due in Dec. Firm raises their tgt to $63.
07:28 PSUN Pacific Sunwear: Friedman believes 3Q07 guidance on track; exploring strategic (15.42 ) -Update-

Friedman Billings notes PSUN announced that it would be closing its One Thousand Stheywe further believe that whatever happens with the demo stores, that the company will now be better focused on continuing the turn in business at the PacSun stores. Firm believes that the strategic review of the demo stores will not be completed until sometime in the early part of FY08, at which time the company will announce the fate of the remaining 152 demo stores. Furthermore, it is their belief that the co may only be able to sell a minority of the demo locations and may have to shutter the remaining demo locations. It is also their belief that the co’s decision to not comment on current quarter guidance of $0.10 to $0.13 for 3Q07, implies that the guidance is still on track.
07:28 SYMC Symantec: Strong Sept results; conservative guidance will be front and center - FBR (21.02 )

Friedman Billings notes SYMC reported a strong Sept quarter across the board, beating firm’s and Street rev, EPS, deferred rev, and cash flow expectations. While the quarter was rosy and builds on positive business trends seen over the past few quarters, guidance for the December quarter was less than stellar. While SYMC is ahead of plan on its core business segments and appears to have a strong pipeline heading into 2H FY08, the co has decided to take a “conservative outlook” given the general economic uncertainty in the marketplace. This series of mixed data points will cause some heartburn/confusion for investors this morning, as many on the Street (including firm) believed that SYMC was seeing light at the end of the tunnel and was well on its way to becoming a more consistent performer.
07:27 NCC National City tgt cut to $23 at FBR (23.02 )

Friedman Billings cuts their tgt on NCC to $23 from $27 following 3Q07 results. Excluding severance expenses, firm calculates that operating EPS was $0.21, $0.13 below FBR’s $0.34 est and $0.14 below consensus. We attribute the result to weak credit and mortgage banking operations, and margin compression. We reduce our estimates to $0.46 (from $0.47) in 4Q07, $1.79 (from $1.92) in 2007, and $1.83 (from $2.20) in 2008. Shares trade at 12.9x and 12.6x our revised 2007-2008 operating EPS estimates of $1.79 and $1.83 and 1.83x 3Q07 estimated tangible book value of $12.58.
07:27 ABB ABB profit soars 86% on Power Grid spending in Asia - Bloomberg (28.00 )

Bloomberg reports the co said 3Q profit climbed 86%, more than analysts estimated, on increased orders from China and India. Net income was $738 mln, or 32 cents a share, compared with $397 mln, or 18 cents, a year earlier, the Zurich-based co said today. Analysts in a Bloomberg survey predicted profit of $657 mln, according to the median of 10 estimates. Sales gained 26% to $7.19 bln. ABB forecast “positive” mkts this year and in 2008 as China invests more than $250 bln in power plants and electricity transmission. The company is targeting 20% growth in annual earnings through 2010. CEO Fred Kindle said last month he may spend blns of dollars on acquisitions to tap demand.
07:27 WSTL Westell Tech: Timing of new AT&T contract clips guidance - Baird (2.15 )

Barid notes WSTL reported FQ2 results were slightly better than both rev and EPS expectations and outsourcing appears on track. Firm notes WSTL announced a new contract with AT&T starting in FQ4. FQ3 rev guidance of $43-$45 mln was steeply lower than firm’s ests due to timing of new AT&T contract expansion. While this is positive news going forward, FQ3 is severely negatively impacted as the current former BLS contract ends in Oct and the new contract is expected to start FQ4.
07:26 ARRY Array Biopharma: Dual inhibitor ARRY-543 demonstrates stable disease at sub-MTD doses - Rodman & Renshaw (11.10 )

Rodman & Renshaw notes ARRY’s dual EGFR/Erb-2 inhibitor demonstrated stable disease at doses of 200mg bid and above. The results showed the drug was well tolerated at doses up to 300mg bid and the MTD was not reached in bid dosing, but was reached at 400mg once-daily. In the completed cohorts, sixty percent of patients receiving doses of 200mg bid or higher had prolonged stable disease. Further, all patients dosed above 50mg had some evidence of stable disease. Co reported that the systemic concentrations of the drug were sufficient to provide continuous and prolonged stable disease. Co plans to move forward with a Phase II trial based on these results. Currently, the only dual inhibitor on the market is GlaxoSmithKline’s (GSK) Tykerb, which was approved in March 2007.
07:26 RAI sees FY07 $4.55-4.65 vs $4.54 Reuters consensus

07:26 RIMM Research In Motion: Canaccord believes the RIMM’s Facebook announcement is the first of what they believe will be many content partnerships (123.90 )

Canaccord believes the RIMM’s Facebook announcement is the first of what they believe will be many content partnership announcements from RIMM. Users now have access and have the ability to update Facebook through a native application that can be installed as a free download. They believe this and other content partnerships will continue to drive consumer adoption of the BlackBerry. The strategic partnership with Alcatel-Lucent should allow RIM to leverage Alcatel-Lucent’s existing channels to market the BlackBerry in China. The Chinese market is massive and we expect more device and partnership announcements in the future.
07:25 RAI prelim $1.21 vs $1.21 Reuters consensus; revs $2.3 bln vs $2.29 bln Reuters consensus

07:25 NIHD NII Holdings beats by $0.07, reports revs in-line (69.44 )

Reports Q3 (Sep) earnings of $0.61 per share, excluding non-recurring items, $0.07 better than the Reuters Estimates consensus of $0.54; revenues rose 38.5% year/year to $852.9 mln vs the $853.3 mln consensus. Net subscriber adds of 327,000, a 23% increase over Q3 2006, resulting in a 38% increase in the ending subscriber base over Q3 2006.
07:25 RNOW Rightnow Tech tgt upped to $23 at Jefferies (16.85 )

Jefferies raises their RNOW tgt to $23 from $18 following upside on Q3 revenue, EPS and guidance, as well as solid customer quality metrics.
07:25 RIG Transocean: Exercises options on two drillships - Calyon (114.34 )

Calyon notes RIG has exercised the purchase option for two drillships with Pacific Drilling. Under the agreement, RIG will have the exclusive marketing rights and a 50% stake in a joint venture co with Pacific Drilling that will own the two drillships. The cost of the 50% stake in the joint venture and a promissory note issued by the joint venture was approximately $238 mln, which is half the cost incurred for the two joint venture drillships through the date of the option exercise.
07:25 BDK Black & Decker beats by $0.15, beats on revs; guides Q4 EPS in-line (83.00 )

Reports Q3 (Sep) earnings of $1.59 per share, $0.15 better than the Reuters Estimates consensus of $1.44; revenues rose 1.5% year/year to $1.63 bln vs the $1.59 bln consensus. Co issues in-line guidance for Q4, sees EPS of $1.55-1.65 vs. $1.60 consensus.
07:25 WCG Follow-up: WellCare Group CEO comments on yesterday’s search warrant; anticipates trading of securities will resume (115.17 ) -Update-

As mentioned at 7:11, co noted that on Wednesday morning they were presented a search warrant for certain documents and files. CEO says they are committed to full compliance. They are cooperating with officials and intend to continue to do so. All essential services have remained operational and uninterrupted. Some staff did go home yesterday to facilitate the officials access to the premises, however the majority of assoc remained on site and continued working. Members continue to have access to same benefits, services, and network of providers. Says this investigation is having no impact on the delivery of any healthcare services. Continuing to pay provider claims, answer calls, and continue provide access to cover healthcare services. Anticipate trading of securities will resume, and previously scheduled conf call On Nov 5 will proceed. Not in a position to share add details in the investigation. (Stock is halted)
07:24 LULU Lululemon Athletica: Growth story, but valuation says stock well ahead of fundamentals - UBS (56.00 )

UBS believes LULU is a great growth story but valuation says stock is well ahead of fundamentals 1) P/E multiple: most early stage growth stocks (SBUX in the early 90s, UA & GOOG today) trade at 35 to 45x forward EPS. LULU trades at 109x forward EPS, and needs the stock being flat through at least yr end ‘09 to grow into a 40x forward PE. 2) DCF: our analysis suggests growth potential well beyond 500 stores is needed to support the current price, aggressive considering the size of the sports apparel market and LULU’s high-end target. 3) Market cap: at $4B, LULU’s cap is 50% higher than UA which has double the sales and equal or better growth oppty.
07:24 CACH Cache: In-line 3Q07; very slight raise to 4Q7 EPS guidance - Broadpoint Capital (16.09 )

Broadpoint Capital notes CACH reported 3Q07 EPS of $0.01, in line with their est and the Street consensus of $0.01, and at the high end of recently raised guidance of $0.00-$0.01. While the co has planned its 4Q07 markdowns as a percentage of sales to be equal to last year’s, firm believes that improvements in merchandising will likely result in reduced markdowns vs 4Q06. They believe there is likely upside potential to their ests.
07:24 SEO Stora Enso’s 3Q net profit gains - AP (16.90 )

AP reports Finnish paper maker Stora Enso Oyj said Thursday that third-quarter profit rose to almost 179 mln euros on slightly growing revenue, but warned of layoffs and production cuts caused by higher costs and a weakening dollar. Net profit in the three-months through Sept. 30 was 178.6 mln euros, up from 163 mln euros a year earlier, the Finnish-Swedish co said. Stora Enso said it swung into a net loss of 264 mln euro if nonrecurring items are included — down from a net profit of 180 mln euros a year earlier. Net sales in the period were 3.23 bln euros, up from 3.21 bln euros.
07:23 MPS MPS Group beats by $0.01, beats on revs; guides Q4 EPS in-line, revs in-line (10.89 )

Reports Q3 (Sep) earnings of $0.23 per share, $0.01 better than the Reuters Estimates consensus of $0.22; revenues rose 15.2% year/year to $556.6 mln vs the $550.8 mln consensus. Co issues in-line guidance for Q4, sees EPS of $0.22-0.23 vs. $0.23 consensus; sees Q4 revs of $545-560 mln vs. $550.77 mln consensus.
07:23 LH Laboratory Corp misses by $0.02, misses on revs; guides FY07 EPS below consensus, revs in-line (75.89 )

Reports Q3 (Sep) earnings of $1.07 per share, ex items, $0.02 worse than the Reuters Estimates consensus of $1.09; revenues rose 12.2% year/year to $1.02 bln vs the $1.03 bln consensus. Co guides for FY07, sees EPS of $4.11-4.18 vs. $4.21 consensus; sees FY07 revenue growth of 12.7-13.2% which equates to roughly $4.05-4.065 bln vs. $4.08 bln consensus. The Company also issued guidance for 2008. Excluding the impact of any share repurchase activity after September 30, 2007, the company expects revenue growth of 6.5% to 8.5% and diluted EPS growth of 11% to 14%.
07:23 PSUN Pacific Sunwear: Upgrade details (15.42 )

As mentioned at 6:37, Citigroup upgraded PSUN to Buy from Hold and raised their tgt to $19 from $15. They believe divestiture of its underperforming demo division along with improving product execution in the core PacSun stores could drive accelerating earnings growth on substantial margin recovery over the next 2 years. They see the co tracking substantially ahead of 3Q07 comp expectations of flat to +LSD.
07:22 SORL SORL Auto Parts announces strategic partnership with Baotou North-Benz Heavy Duty Truck (8.52 )

Co announced that it has entered into a technology development agreement with Baotou North- Benz Heavy Duty Truck Co. With this new agreement, SORL becomes a major long-term supplier of air brake products for North-Benz. SORL and North-Benz started their collaboration in the first half of 2007. The estimated value of the contract is approximately US$2 mln in 2008.
07:22 WIRES On The Wires

Accenture (ACN) has agreed to acquire Gestalt, a privately held defense consulting firm that provides mission-support services to the U.S. DoD. Terms were not disclosed… Radyne (RADN) announces it received orders totaling $1.6 mln for modems in support of the Ground Multi-band Terminal program and for another military communications program… Arrowhead Research (ARWR) announces that it has provided $2.4 mln in additional capital to wholly-owned subsidiary, Tego Biosciences… M.T.I MicroFuel Cell, a subsidiary of Mechanical Technology (MKTY), announces a continuing collaboration with its Korean partner and M.T.I. Micro’s plans to commercialize and market Mobion MFC technology for mobile phone and mobile phone accessories.
07:21 PX Praxair downgraded to Neutral from Buy at Merrill (86.77 )

07:21 CBH Commerce Bancorp reports Q3 (Sep) results, misses on revs (38.58 )

Reports Q3 (Sep) loss of $0.24 per share, may include gains, charges, may not be comparable to the Reuters Estimates consensus of $0.41; revenues fell 25.8% year/year to $350.8 mln may not be comparable to $538.6 mln consensus.
07:21 TNH Terra Nitrogen reports Q3 EPS of $2.42 vs $0.73 in 3Q06; revs rose 44% YoY to $133.2 mln - no ests (124.92 )

07:20 MER Merrill Lynch: Hearing downgraded to neutral from buy at tier 1 (63.22 )

07:20 BLK BlackRock: Hearing upgraded to buy from neutral at tier 1 firm (189.23 )

07:20 PENN Penn Natl Gaming beats by $0.01, misses on revs; guides Q4 EPS below consensus, revs below consensus (61.45 )

Reports Q3 (Sep) earnings of $0.54 per share, excluding non-recurring items, $0.01 better than the Reuters Estimates consensus of $0.53; revenues rose 7.4% year/year to $629.5 mln vs the $641.9 mln consensus. Co issues downside guidance for Q4, sees EPS of $0.41 vs. $0.44 consensus; sees Q4 revs of $595.4 vs. $614.90 mln consensus.
07:19 ERIC LM Ericsson: Ericsson sees profit fall 36% - AP (29.80 )

AP reports the co posted a 36% drop in 3Q net profit, with weaker sales of mobile network upgrades as well as expansions mainly weighing on its results. Net profit for the July to September period fell more than a third, to 3.97 bln kronor ($614.74 mln), down sharply from 6.23 bln kronor in the same quarter last year. Sales in the quarter reached 43.54 bln kronor ($6.73 bln), up slightly from 41.27 bln kronor in the 3Q in 2006. Ericsson’s president and CEO Carl-Henric Svanberg on Thursday again acknowledged that the change in business mix within its networks unit had hurt Ericsson’s margins, but said all its other business units had “performed as expected.” Svanberg said the networks business continues to develop the fastest among its units, but added that this is also the area “where … pricing pressure is most intense.” For 2008, the co said it believes “the current market conditions will prevail.”
07:19 AKAM Akamai Tech: Color on quarter (32.97 )

Merriman expects AKAM’s gross margin to continue to decline through 2007 and beyond as a result of both increased competition and volume discounting. At the same time, top-line and EBITDA growth appear to be reverting to that of its peer group, which consequently reduces its premium valuation. Firm still believes the acquisition of Nine Systems and Netli will prove to be very strong acquisitions and that Akamai is now in a better position strategically to maintain its dominant market share, however we believe this is reflected in its current share price… ThinkEquity says with a more-efficient operating structure and reduced CapEx, despite gross margin pressure, AKAM delivered 56% y/y free cash flow growth in 3Q. Firm believes an overarching migration of high definition media delivery to the living room should drive long-term growth for AKAM’s delivery services, albeit at lower gross margins. With modestly better guidance, visibility into 2008, and several catalysts in the coming weeks, and shares priced attractively firm would be buyers of AKAM… Citi views the combination of 3Q results and guidance as supporting their bullish outlook for AKAM and would be buyers of the stock at current levels. They believe initial ‘08 guidance of 25-30% top and bottom line growth will be the catalyst that reverses the negative sentiment that has plagued the shares over the past 6 months. They view the guidance range as evidence that AKAM’s operating model and CDN leadership position remain firmly in place.
07:19 CMCSA Comcast reports EPS in-line, revs in-line (23.85 )

Reports Q3 (Sep) earnings of $0.18 per share, in-line with the Reuters Estimates consensus of $0.18; revenues rose 21.0% year/year to $7.78 bln vs the $7.75 bln consensus. Co added 489,000 new digital cable subscribers during the third quarter of 2007 — reached 14.7 million digital customers or 61% of basic cable subscribers compared to 50% one year ago, 5.8 million or 40% of digital cable subscribers take advanced services such as digital video recorders and high-definition television compared to 4.0 million one year ago. During the third quarter of 2007, basic cable subscribers decreased by 65,000 as compared to an 11,000 subscriber increase during the same period of the prior year. Added 450,000 high-speed Internet subscribers during the third quarter — penetration reaches 27%. Co added 662,000 Comcast Digital Voice customers during the quarter — penetration now exceeds 9%. For 2007, Comcast previously issued the following guidance: Cable revenue growth of at least 12%2; Cable Operating Cash Flow growth of at least 14%2; Cable RGU net additions of approximately 6.5 million, 30% above 2006 RGU net additions2 of 5 million; RGU outlook includes an expected decrease of 500,000 circuit-switched phone RGUs; Cable capital expenditures of approximately $5.7 billion, including commercial services capital expenditures of approximately $250 million; Corporate and other capital expenditures of approximately $250 million primarily due to the relocation of Comcast’s headquarters; Consolidated revenue growth of at least 11%; Consolidated Operating Cash Flow growth of at least 13%4; Consolidated Free Cash Flow approximately the same as 2006. Co said, “While we remain focused on achieving our guidance, the more competitive environment and less-robust economy may have a slight impact on our full year operating results. Current forecasts indicate that consolidated Free Cash Flow will be at least 90% of 2006.”
07:19 MKSI MKS Instruments beats by $0.06, misses on revs; guides Q4 EPS below consensus, revs below consensus (19.99 )

Reports Q3 (Sep) earnings of $0.38 per share, excluding non-recurring items, $0.06 better than the Reuters Estimates consensus of $0.32; revenues fell 11.9% year/year to $181 mln vs the $183 mln consensus. Co issues downside guidance for Q4, sees EPS of $0.23-0.28 vs. $0.31 consensus; sees Q4 revs of $165-173 mln vs. $178.31 mln consensus.
07:19 PEI Pennsylvania R.E.I.T. initiated with a Neutral at Merrill (38.05 )

07:18 SVR Syniverse Holdings announces secondary offering of 20 mln shares of common stock (17.05 ) -Update-

07:18 LH sees FY07 $4.11-4.18 vs $4.21 Reuters consensus; sees revs $4.05-4.065 bln vs $4.08 bln Reuters consensus

07:18 ODFL Old Dominion misses by $0.01, reports revs in-line; guides Q4 EPS below consensus (22.72 )

Reports Q3 (Sep) earnings of $0.54 per share, $0.01 worse than the Reuters Estimates consensus of $0.55; revenues rose 7.6% year/year to $363.3 mln vs the $364.8 mln consensus. Co issues downside guidance for Q4, sees EPS of $0.41-0.44 vs. $0.51 consensus.
07:16 SVR Syniverse Holdings beats by $0.05, beats on revs; guides FY07 revs above consensus (17.05 )

Reports Q3 (Sep) earnings of $0.33 per share, $0.05 better than the Reuters Estimates consensus of $0.28; revenues rose 7.8% year/year to $99.2 mln vs the $93.1 mln consensus. Co issues upside guidance for FY07, sees FY07 revs of $361-364 mln vs. $350.28 mln consensus.
07:15 CNMD CONMED reports EPS in-line, revs in-line; guides Q4 EPS in-line, revs above consensus; guides FY07 EPS in-line; guides FY08 EPS in-line (28.43 )

Reports Q3 (Sep) earnings of $0.29 per share, in-line with the Reuters Estimates consensus of $0.29; revenues rose 6.1% year/year to $164.4 mln vs the $165.4 mln consensus. Co issues mixed guidance for Q4, sees EPS of $0.36-0.40 vs. $0.37 consensus; sees Q4 revs of $177-181 mln vs. $176.74 mln consensus. Co issues raising guidance for FY07, sees EPS of $1.30-1.34, compared to previous guidance of $1.27-1.32, vs. $1.30 consensus. Co issues in-line guidance for FY08, sees EPS of $1.47-1.52 vs. $1.47 consensus.
07:15 SDIX Strategic Diagnostics announces progress in advancing clinical biomarker discovery (5.64 )

Co announces progress in collaborating with the Kleberg Center for Molecular Markers at The University of Texas M. D. Anderson Cancer Center. The center is currently testing SDIX’s Genomic Antibody Technology (G.A.T.) platform in oncology biomarker discovery research. SDIX’s sequence-based G.A.T. platform triggers the immune system of the host to produce an antibody against a native protein. Through internal and third party analysis, these antibodies have demonstrated superior performance in the recognition and targeting of native protein targets in experimental models and clinical samples as compared to reagents made with traditional methods. Participating in a collaborative study, independent researchers at M. D. Anderson have now used SDIX’s growing library of G.A.T. antibodies to screen hundreds of clinical cancer biopsy samples in a high throughput system to analyze the differential presence of proteins in the tissue samples. The individual protein signature of these samples created with SDI’s reagents allows further research into the clinical significance of the findings.
07:15 LH prelim $1.07 vs $1.09 Reuters consensus; revs $1.02 bln vs $1.03 bln Reuters consensus

07:15 STP Suntech Power profiled in New America section of IBD (46.94 )

IBD reports the co opened its US headquarters in San Francisco on Tuesday, Suntech’s U.S. sales still are tiny though. The U.S. now is many megawatts shy of the lead spot. California leads the U.S., with an 11-year, $3.4 bln initiative to subsidize solar panels on up to a mln roofs. Other states have weaker incentives. Analysts say it will take a large national incentive program to drive more U.S. demand. But even without stronger U.S. demand, Suntech is boosting sales. Suntech has ramped up production, too, outstripping the deals its signed to supply silicon, the raw material of solar cells. That’s forced the co to buy silicon on the much more expensive spot mkt. That’s pinched margins and spooked many investors. It says it is on track to reach 480 megawatts by the end of this year. A megawatt is about what it takes to power about 1,000 U.S homes. The main push now is to make standard ground- and roof-mounted solar panels more efficient. Suntech says next year it will deliver panels with 20% efficiency — meaning they convert 20% of the available sunlight that hits them into electricity. Analysts surveyed by Thomson Financial expect $1.03 this year, and $1.62 next.
07:15 IMCL Imclone reports Q3 (Sep) results, misses on revs (43.71 )

Reports Q3 (Sep) loss of $0.01 per share, includes $50 charge, may not be comparable to the Reuters Estimates consensus of $0.28; revenues fell 2.1% year/year to $147.5 mln vs the $150.1 mln consensus. See 7:04 comment for IMCL’s drug sales results.
07:13 CBZ CBIZ Inc beats by $0.01, beats on revs; guides FY07 EPS in-line (8.58 )

Reports Q3 (Sep) earnings of $0.06 per share, $0.01 better than the Reuters Estimates consensus of $0.05; revenues rose 10.6% year/year to $151.7 mln vs the $148.6 mln consensus. Co issues in-line guidance for FY07, sees EPS growth of 20-25%, equates to EPS of $0.42-0.44 vs. $0.42 consensus.
07:12 ELNK EarthLink reports Q3 (Sep) results, beats on revs; reaffirms FY07 revs guidance (7.74 )

Reports Q3 (Sep) loss of $0.65 per share, includes charges, may not be comparable to the Reuters Estimates consensus of ($0.59); revenues fell 9.8% year/year to $298.8 mln vs the $293.7 mln consensus. Co reaffirms guidance for FY07, sees FY07 revs of $1.19-1.21 bln vs. $1.21 bln consensus.
07:11 XEL Xcel Energy reports EPS in-line, misses on revs; guides FY07 EPS in-line; guides FY08 EPS in-line (21.04 )

Reports Q3 (Sep) earnings of $0.57 per share, in-line with the Reuters Estimates consensus of $0.57; revenues fell 0.5% year/year to $2.4 bln vs the $2.47 bln consensus. Co issues raising guidance for FY07, sees EPS of $1.38-1.42, compared to previous guidance of $1.30-1.40, vs. $1.40 consensus. Co issues in-line guidance for FY08, sees EPS of $1.45-1.55 vs. $1.49 consensus.
07:11 WCG WellCare Group releases CEO commentary, on website, regarding yesterday’s search warrant execution (115.17 )

(Stock is halted)
07:10 IMN Imation beats by $0.06, reports revs in-line; guides Q4 EPS above consensus, revs in-line (22.54 )

Reports Q3 (Sep) earnings of $0.23 per share, excluding non-recurring items, $0.06 better than the single estimate of $0.17; revenues rose 23.7% year/year to $525.5 mln vs the $525 mln estimate. Co issues mixed guidance for Q4, sees EPS of $0.37-0.46, excluding non-recurring items, vs. $0.34 estimate; sees Q4 revs of $640-690 mln vs. $658.00 mln estimate.
07:09 TRA Terra Industries beats by $0.02, reports revs in-line (34.55 )

Reports Q3 (Sep) earnings of $0.51 per share, $0.02 better than the Reuters Estimates consensus of $0.49; revenues rose 27.7% year/year to $594 mln vs the $598 mln consensus. Co says projected grain inventories should encourage another year of strong planted acres of corn and wheat, which should lead to continued robust nitrogen demand. Co says nitrogen prices should exhibit normal seasonal increases through the 2008 planting season.
07:09 EQT Equitable Res misses by $0.03, misses on revs (53.78 )

Reports Q3 (Sep) earnings of $0.27 per share, $0.03 worse than the Reuters Estimates consensus of $0.30; revenues fell 2.6% year/year to $226.8 mln vs the $255 mln consensus.
07:09 COT Cott reports Q3 (Sep) results, revs slightly light (7.26 )

Reports Q3 (Sep) loss of $0.08 per share, includes $15.1 mln in pre-tax restructuring charges, does not appear comparable to the Reuters Estimates consensus of $0.07; revenues fell 2.3% year/year to $464.6 mln vs the $468.1 mln consensus. COT CEO states “We are disappointed by our performance in