8:36 RICK Rick’s Cabaret issues guidance (16.67 )
Co sees FY08 (Sep) revs of $52 mln (single analyst est is for $43.3 mln), with after tax net income of about $7 million on which it anticipates EPS of $0.95 per basic share (may not be comparable to single analyst estimate of $0.75). The co’s outlook for fiscal 2009 anticipates revenues of approximately $75 mln, net income of about $13 mln and earnings of about $1.70 per basic share.
08:36 EVVV EV3 reports Q3 (Sep) results, misses on revs; issues Q4, Y08 guidance (15.27 )
Reports Q3 (Sep) loss of $0.60 per share, includes charge relateed to the agreements in principle to settle certain litigation, may not be comparable to the Reuters Estimates consensus of ($0.15); revenues rose 25.4% year/year to $65.1 mln vs the $66.9 mln consensus. Co reaffirms guidance for Q4, sees Q4 revs of $108 or greater vs. $118.85 mln consensus. Co reaffirms guidance for FY08, sees EPS of $0.55 or greater may not compare to $0.50 consensus; sees FY08 revs of $570 or greater vs. $561.46 mln consensus.
08:35 RVSN RADVision: 3Q07 preview; key is 4Q7 guidance - Kaufman (13.02 )
Kaufman notes RVSN is scheduled to report 3Q07 results on Nov 2. Considering the co preannounced results that were significantly below guidance and firm’s expectations in early Oct, they do not expect any surprises regarding rev. Co did not give any indication on EPS for the quarter. Firm’s pro forma EPS est calls for $0.08. Firm believes the key topic for investors will be guidance for 4Q07, as this should provide important insight into whether the issues that impacted 3Q07 were temporary or indications of other competitive issues. Firm believes the core issue for RVSN is not as much product related as about improving the channel. Therefore, they think mgmt can address the problems fairly quickly.
08:35 NEM Newmont Mining beats by $0.47, beats on revs (46.44 )
Reports Q3 (Sep) earnings from continuing operations of $0.72 per share, $0.47 better than the Reuters Estimates consensus of $0.25; revenues rose 49.4% year/year to $1.65 bln vs the $1.41 bln consensus. Co is narrowing outlook for equity gold sales to between 5.2 and 5.4 million ounces at costs applicable to sales of between $400 and $430 per ounce for 2007.
08:33 S&P futures vs fair value: +5.7. Nasdaq futures vs fair value: +2.5.
Futures were choppy immediately following two economic releases, but are now trading slightly higher than pre data release levels. Third Quarter GDP rose to an annualized rate of 3.9%, while the Employment Cost Index came in at 0.8%. Separately, MasterCard (MA) topped its earnings estimates.
08:33 WY prelim $0.55, ex-items, vs $0.50 Reuters consensus; revs $4.15 bln vs $4.36 bln Reuters consensus
08:33 EVVV reaffirms FY08 $0.55 or higher may not compare to $0.50 Reuters consensus; sees revs $570.00 mln or greater vs $561.46 mln Reuters consensus
08:33 CTV Commscope downgraded to Neutral from Buy at Merrill (52.20 ) -Update-
08:32 VRML Vermillion protein biomarkers help detect early-stage ovarian cancer and predict survival (0.98 )
Co and its collaborators presented data demonstrating that several of VRML’s ovarian cancer protein biomarkers could be used to detect early-stage ovarian cancer and to predict survival. These poster presentations were made at the 15th International Meeting of the European Society of Gynecological Oncology. The ovarian cancer detection study showed that a panel of biomarkers in combination with CA125 could more accurately identify early stage ovarian cancer than could CA125 alone. For stage I disease, the combination correctly identified 80% of the cancers while CA125 predicted 68%. Similarly with stage II ovarian cancer, the Vermillion panel with CA125 identified 88% of the cancers compared to 71% for CA125. In the survival study, researchers determined that VRML’s seven biomarker panel could accurately and with statistical significance predict women with ovarian cancer who had good prognosis from those who did not. “These data further contribute to our robust ovarian cancer diagnostics pipeline, and validation studies are underway in a larger population of women with ovarian cancer with the goal of replicating these results,” said Eric Fung, M.D., Ph.D., Chief Scientific Officer, VRML.
08:32 EBIX Ebix reports Q3 EPS of $1.00 vs$0.53 in 3Q06; revs rose 61% YoY to $11.8 mln - no ests (51.99 )
08:32 NEM prelim $0.72 vs $0.25 Reuters consensus; revs $1.65 bln vs $1.41 bln Reuters consensus
08:32 TIVO TiVo and Windstream partner to offer TiVo DVR & Windstream high-speed internet bundle (6.93 )
Co and Windstream (WIN) announce an agreement to offer bundled internet and TiVo DVR services.
08:32 EVVV reaffirms Q4 revs of $108 mln or greater vs $118.85 mln Reuters consensus
08:31 BCO prelim $0.70, ex items vs $0.65 Reuters consensus; revs $817 mln vs $765.13 mln Reuters consensus
08:31 EVVV prelim ($0.60) may not compare to ($0.15) Reuters consensus; previously announced of revs $65.1 mln
08:31 RICKs sees FY08 sales of approx $52 mln with after tax net income of about $7 mln on which it anticipates earning 95 cents per basic share
08:30 ECONX GDP Price Index +0.8% vs +2.0% consensus, prior was 2.6%
08:30 DRC Dresser-Rand beats by $0.05, revs light (38.48 )
Last night, DRS reported Q3 EPS of $0.25 vs $0.20 Reuters Estimates consensus; revs $389.3 mln vs $424.4 mln.
08:30 ECONX Q3 Employment Cost Index 0.8% vs. 0.9% Consensus -Update-
No revision to prior 0.9%
08:30 ECONX Personal Consumption +3.0% vs +3.2% consensus, prior +1.4%
08:30 ECONX GDP- advanced +3.9% vs +3.1% consensus, prior Q2 was +3.8%
08:29 SFLY Shutterfly: Additional detail on SFLY earnings call yesterday (36.40 ) -Update-
The co said that it is very delighted with the initial response for its halloween promotion. Mgmt is very pleased with the trajectory of the business, the top line growth and the expanding EBITDA margin. The co has benefited a lot from word of mouth advertising. In a response to an analyst question regarding local competition, the co said that there is no meaningful local competition, the co concentrates on the premium mkt and not on the 4×6 prints the kiosks concentrate on.
08:29 DRYS Cantor comments on dry bulk sell-off, says spot volatility likely temporary as China positions for Iron Ore negotiations (108.00 )
Cantor notes that dry bulk shipping stocks were down sharply yesterday as spot rates moved slightly lower. They note that Capesize spot rates were down about 4%, while Panamax and Supramax spot rates were roughly unchanged. They believe that the movement in spot rates may be a result of Chinese importers/steel producers attempting to “spook” the market ahead of negotiations for iron ore prices in 2008. As a reminder, iron ore suppliers to China are attempting to receive dispensation for the rising shipping rates. As such, they think this may cause significant rate volatility over the near-term. The firm has also heard market reports that the downward movement is a result of a vessel fixture at $147,000 per vessel/day, below market rates, which caused some accounts to mark their contracts to market. Regardless of the cause of this movement, they remain bullish on the dry bulk sector for the next several years as strong commodity demand, particularly by developing countries, will keep freight rates elevated in the face of limited fleet growth. They see this correction as a buying opportunity. (EGLE, EXM, GNK, PRGN, QMAR)
08:28 EQIX Equinix upgraded to Buy at Kaufman — tgt $120 (99.62 ) -Update-
Kaufman upgrades EQIX to Buy from Hold and raises their tgt to $120 from $96 due to the strong 3Q07 results and meaningful increase in guidance for next year. The firm says while the multiple is rich and a significant premium to its peers, they believe valuation is a secondary focus of investors. Firm thinks as long as the co continues to exceed expectations, momentum should continue to drive the stock higher.
08:28 AMED AMEDISYS downgraded to Hold from Buy at Stifel- based on valuation and limited upside at current levels (43.40 )
08:28 TYG Tortoise Energy Infrastructure resumed with a Buy at Stifel- tgt $41 (35.03 )
Stifel resumes coverage of TYG with a Buy and a $41 tgt saying they believe the benefits of the closed-end investment company structure, such as professional management, asset diversification, reduced tax filing burden and access to private direct investments, are compelling aspects for investors to consider when seeking yield bearing asse
08:27 SPWR Sunpower: Upgrade details (119.06 )
As mentioned at 7:11, RBC upgraded SPWR to Outperform from Sector Perform and raised their tgt to $145 from $51. The firm believes the co is destined to emerge as a leader in the next phase of the industry, with superior growth rates, margins and advantages of scale. They note that SPWR’s solar panels are not only the most efficient on the mkt and have an aesthetic advantage translating into premium pricing power and lower installation costs, but the fundamental design is superior to traditional silicon based PV.
08:26 HUBG Hub Group upgraded to Buy at Stifel- tgt $31 (24.21 )
Stifel upgrades HUBG to Buy from Hold based on valuation. The firm says the co’s shares traded down significantly following its 3Q07 earnings release as the market reacted negatively to weaker-than-expected intermodal volume, 4Q07 guidance range that was below some analysts’ expectations, and the termination of the co’s announced DNJ acquisition.
08:25 DENN Denny’s: Potential SSS leverage to be the key in Q3 - Morgan Joseph (4.78 )
Morgan Joseph remains upbeat about the DENN turnaround progress, given that the co’s FGI continues to run smoothly and provide DENN’s with: 1) additional cash for debt repayments; 2) improving AUVs (as underperforming markets are eliminated); and 3) a source of capital for new unit growth and remodel initiatives. However, 3Q results could be tempered on lighter-than-expected SSS and the near-term revenue impact of less units in the system (DENN sold 22 units under FGI during the quarter). As such, firm expects operating EPS of $0.03 (excludes refranchising gains) vs. $0.03 last year.
08:24 NCR NCR Corp beats by $0.13, beats on revs; guides FY07 EPS above consensus (25.53 )
Reports Q3 (Sep) earnings of $0.39 per share, excluding non-recurring items, $0.13 better than the Reuters Estimates consensus of $0.26; revenues rose 11.9% year/year to $1.28 bln vs the $1.18 bln consensus. Co issues upside guidance for FY07, sees EPS of $1.20-1.25, excluding non-recurring items, compared to previous guidance of $1.15-1.20, vs. $1.18 consensus; co sees total revs up 5-6% yr/yr.
08:23 BONDX Bond Watch: Spooked Overnight
The market is offered as globally stocks outperformed on diminished risk aversion despite not-so favorable EuroZone data. The flight to quality has backed off gradually this week as the market has corrected modestly on better stocks. The feeling that the Fed is getting out ahead of the economic weakness has given a cautionary orange light to get back into risky assets, & the advance in bonds is slowing accordingly. The 2-10-yr yield spread is batting around 57.7 still as curve trade has found a comfort zone heading into the FOMC. Bond prices in the EuroZone were severely dented on a pop in prices which outweighed whatever bid was given through a jump in unemployment & other weaker data. In Japan, bond prices benefited from a dovish BOJ meeting & weak housing starts. Treasuries will have a lot to ponder today with a first look at Q3 GDP & all the details. Of course, most will be watching the Fed later today. The consensus still expects a 25 basis point cut with a balanced statement between risks to economy & inflation. The bonds should get a little juice through the day from the data but are likely saving a bigger move for later, & possibly beyond to Fri’s payrolls as the Fed tries to shift from financial instability (will probably try to suggest the market has recovered from Aug’s credit pinch) back to data dependency. In all, the bonds are still at lofty levels & will require some outright bad data & suggestion that the Fed is on the dovish side to convince buyers to get back in. So far, things aren’t shaping up so well with ADP reporting 106K new private sector jobs were created in Oct & bonds are plumbing overnight lows. The buck has gained some ground following ADP, but remains off on the euro but better on the yen ahead of rate business. Data due include Q3 GDP (8:30), Chicago PMI (9:45) & construction spending (10) along with FOMC at 14:15. The euro is at 1.4447 & the yen is at 115.2875 while the 10-yr is -08/32nds yielding 4.412%. For more bond & economic commentary click here.
08:22 MR Mindray Medical: Expecting solid 3Q7 with modest upside - Brean Murray (38.81 )
Brean Murray expects MR to report modest revenue and earnings upside for 3Q07 on Nov 1 and narrow full-year 2007 guidance around the high end of previous targets, although YoY rev and earnings growth should moderate somewhat compared to the co’s exceptionally strong 2Q07.
08:21 NCR sees FY07 $1.20-1.25 vs $1.18 Reuters consensus; sees revs up 5-6% yr/yr
08:20 NCR prelim $0.39 vs $0.26 Reuters consensus, $0.27 First Call; revs $1.28 bln vs $1.18 bln Reuters consensus
08:20 GOOG Google and friends to gang up on Facebook - NY Times (694.77 ) -Update-
NY Times reports the co and some of the Web’s leading social networks are teaming up to take on the new kid on the block — Facebook. On Thursday, an alliance of cos led by Google plans to begin introducing a common set of standards to allow software developers to write programs for Google’s social network, Orkut, as well as others, including LinkedIn, hi5, Friendster, Plaxo and Ning. The strategy is aimed at one-upping Facebook, which last spring opened its service to outside developers. Since then, more than 5,000 small programs have been built to run on the Facebook site, and some have been adopted by millions of the site’s users. Most of those programs tap into connections among Facebook friends and spread themselves through those connections, as well as through a “news feed” that alerts Facebook users about what their friends are doing.
08:19 CTV Commscope: 3Q07 earnings beat ests; guidance appears to disappoint; opportunity to buy - Brean Murray (52.20 )
Brean Murray notes CTV reported 3Q07 bottom-line results ahead of expectations, with pro forma EPS of $0.85 vs. consensus expectations of $0.81. Guidance for 4Q07 and comments of modest organic growth for 2008, while in line with their ests, appear to have disappointed some. Firm believes that CTV is reasonably priced on a standalone basis and continues to estimate single-digit organic growth for 2008. However, they believe that the proposed acquisition of Andrew (ANDW), still slated for a close before year-end, will be substantially accretive to CTV over the next several years, adding 50% or more to earnings by 2011. Firm would be aggressive buyers into any weakness.
08:19 Early pre-market gappers
Gapping up: HA +13.9%, PMTC +7.1%, DSX +5.7%, DRYS +5.4%, SPWR +4.2%, DB +4.4%, DELL +2.9%, ALU +2.6%, ALKS +2.0%, VZ +1.9%, ANDW +1.7%, AMLN +1.2% , BIDU +1.6%, YHOO +1.5%, GOOG +1.1%… Gapping down: GPCB -59.8%, CKSW -14.1%, SPPI -13.0%, FEIC -12.3%, CTV -9.0%, WYNN -5.6%, GRMN -5.4%, LVS -4.7%, NIHD -3.8%, LDK -2.7%, Q -2.3%, INFN -1.6%, UA -1.2%.
08:19 MXWL Maxwell Tech downgraded to Hold from Buy at Needham (11.35 )
08:18 OCR Omnicare misses by $0.11, misses on revs; guides Q4 EPS below consensus (35.11 )
Reports Q3 (Sep) earnings of $0.44 per share, excluding non-recurring items, $0.11 worse than the Reuters Estimates consensus of $0.55; revenues fell 3.6% year/year to $1.54 bln vs the $1.56 bln consensus. Co issues downside guidance for Q4, sees EPS of $0.45-0.50, excluding non-recurring items, vs. $0.62 consensus.
08:18 TAM TAM S.A.: Upgrade details (28.28 )
As mentioned at 6:43, Citigroup upgraded TAM to Buy from Hold and raised their tgt to $43 from $33. The firm says their checks have revealed that the co has appeared to adhere to the most consistent fare strategies. Moreover, rival GOL’s acquisition of Varig (and an expected slowdown in enplanements per capita growth in Brazil, thanks to higher fares) weakens the argument that TAM should still trade at a discount.
08:17 MA MasterCard beats by $0.38, beats on revs; approves $750 mln repurchase (157.15 )
Reports Q3 (Sep) earnings of $1.80 per share, excluding $0.51 from the partial sale of the co’s investment in Redecard S.A. in Brazil, $0.38 better than the Reuters Estimates consensus of $1.42; revenues rose 20.1% year/year to $1.08 bln vs the $1.03 bln consensus. Board of Directors approves incremental $750 mln Class A share repurchase
08:16 HURN Huron Consulting beats by $0.01, misses on revs; guides Q4 EPS below consensus, revs below consensus (80.16 )
Reports Q3 (Sep) earnings of $0.58 per share, $0.01 better than the Reuters Estimates consensus of $0.57; revenues rose 78.3% year/year to $134.1 mln vs the $137 mln consensus. Co issues downside guidance for Q4, sees EPS of $0.61-0.65 vs. $0.64 consensus; sees Q4 revs of $135-138 mln vs. $146.65 mln consensus.
08:16 WIRES On The Wires
King Pharmaceuticals (KG) and Acura Pharmaceuticals announce that the cos have entered into a license, development and commercialization Agreement for the United States, Canada, and Mexico encompassing a potentially wide range of opioid analgesic products utilizing Acura’s patented Aversion Technology platform… Two noted cancer treatment specialists reported yesterday about how they are using technologies from Varian Medical Systems (VAR) to target tumors more accurately and to speed up delivery of ultra-precise intensity-modulated radiotherapy treatments. The presentations were part of an “Emerging Technologies Symposium” sponsored by VAR… ShoreTel (SHOR)announces that Telindus, the European specialist in I.C.T. solutions and services, will sell SHOR products to deliver unified communications as a managed service… 8×8 (EGHT) announces that it has been issued U.S. Patent No. 7,289,491 for an arrangement and method of Internet telephony.
08:15 ECONX ADP Employment Change 106K vs 58K consensus
08:15 RIG Transocean beats by $0.13, beats on revs (114.87 )
Reports Q3 (Sep) earnings of $2.12 per share, excluding multiple non-recurring items, $0.13 better than the Reuters Estimates consensus of $1.99; revenues rose 50.0% year/year to $1.54 bln vs the $1.5 bln consensus. Co said, the quarter-to-quarter increase in revenues was primarily due to a higher average dayrate, partially offset by a slight reduction in days in service. The increase in average dayrate was experienced across all rig categories, primarily as a result of rigs commencing new contracts at the higher prevailing current dayrates.
08:14 OCR sees Q4 $0.45-0.50 vs $0.62 Reuters consensus
08:14 PIR Pier 1 Imports shows sign of revival - WSJ (4.96 )
WSJ reports the co is showing signs of life, even if its shares aren’t. Nine months into his first year as CEO, retailing veteran Alex Smith has cut costs and slowed the pace of sales declines at the co. Adding impulse items such as Halloween merchandise to storefronts, scrapping television ads in favor of spunky and targeted mailings, and implementing other changes have produced what Mr. Smith has called “seedlings of success.” Couple those positives with recent insider buying and a coming show-and-tell by mgmt, and some fans see a compelling case for the stock to double or triple within a couple of years. Plenty of near-term risks remain, especially given the housing market’s cloud over such retailers and the competitive pressures. Pier 1’s charts suggest shares are approaching a bottom to their nearly four-year downtrend, even though it may take a move to the $3.50 to $3.90 range to touch off a rally that could move them above their current resistance level of $7.62. Meanwhile, all of Pier 1’s stores by mid-Nov. will emphasize more affordable impulse items, such as a $10 cylinder of Christmas ornaments, and smaller, cheaper furniture, such as a $79 glass-top dining table accented with rattan.
08:14 NMSS NMS Comms: Solid Q3 and Q4 guidance; Raising tgt to $2.75 - Cantor (1.37 )
Cantor raises their tgt on NMSS to $2.75 from $2.50 following 3Q07 results yesterday, after the market closed, that were ahead of expectations. For FY07, firm has raised their rev est from $85.5 mln to $87.3 mln and have increased their pro forma EPS est from ($0.15) to ($0.07). For FY08, firm has increased their rev est from $97.4 mln to $98.3 mln and they have raised their pro forma EPS est from ($0.05) to $0.00. For FY09, firm is introducing a $108.1 mln rev est, a $0.01 pro forma EPS est and a $0.00 pro forma operating EPS est.
08:14 OCR prelim $0.44 vs $0.55 Reuters consensus; revs $1.54 bln vs $1.56 bln Reuters consensus
08:12 ANR Alpha Natural Resources beats by $0.01, beats on revs (26.78 )
Reports Q3 (Sep) earnings of $0.14 per share, $0.01 better than the Reuters Estimates consensus of $0.13; revenues rose 6.7% year/year to $507.1 mln vs the $446.2 mln consensus. Co says “Challenging market conditions faced by coal producers at the outset of this year continue to give way to more positive fundamentals….Published sources indicate that, by Sept, there had been a favorable swing of about 40 mln tons in the supply-demand balance from last year… Demand for coking coal has strengthened globally at the same time supply has been constrained by transportation problems in Australia and Eastern Europe and production outages at key US producers, progressively driving up demand and prices in the spot market. The declining dollar and [higher] ocean freight rates also have made US coking coal more competitive in Alpha’s traditional seaborne markets. Metallurgical coal is used to produce coke for the steel-making process. Alpha is the nation’s largest supplier and exporter of metallurgical coal.”
08:12 HURN sees Q4 $0.61-0.65 vs $0.64 Reuters consensus
08:11 HURN prelim $0.58 vs $0.57 Reuters consensus; revs $134.1 mln vs $137.00 mln Reuters consensus
08:11 ROC Rockwood Holdings misses by $0.01, beats on revs; issues FY07 revenue guidance (37.80 )
Reports Q3 (Sep) earnings of $0.42 per share, excluding non-recurring items, $0.01 worse than the Reuters Estimates consensus of $0.43; revenues rose 12.1% year/year to $829.6 mln vs the $808.6 mln consensus. ROC sees Y07 sales up approx 10% which equates to roughly $3.66 bln vs $3.23 bln consensus.
08:11 MA announces additional $750 mln buyback
08:10 MA prelim $1.80 vs $1.42 Reuters consensus; revs $1.08 bln vs $1.03 bln Reuters consensus
08:09 BONDX Economic Calendar
Q3 GDP & employment cost index at 8:30 followed by Chicago PMI at 9:45 & construction spending at 10. Crude inventories are also at 10 & the day’s biggie FOMC policy statement at 14:15.
08:09 GFIG GFI Group: Initiation details (85.71 )
As mentioned at 6:43, Bear Stearns initiated GFIG with an Outperform and set a $102.60 tgt. The firm says GFIG is the most attractive growth profile in the IDB sector from its attractive mrkt positioning in the faster-growing segments, namely credit derivatives, energy and commodities. They expect profit growth to benefit from improving operating leverage over the next few years as GFI improves its operating margin. They also note GFI’s hybrid model acts as an increasing barrier to entry for rival firms.
08:08 DELL Dell tgt upped to $35 at Caris (29.80 +0.33)
Caris raises their DELL tgt to $35 from $30 to reflect the improved visibility of the co following the co’s filings of its financials for prior past-due periods, likely benefits from increased communication with the Street (Strategy Call on November 29, 2007, Analyst Day on April 2-3, 2008), and the share buyback announcement. Meanwhile, they say PC-related data points (Intel, Microsoft, HDDs) remain strong.
08:08 IDA IdaCorp reports EPS in-line, beats on revs (34.58 )
Reports Q3 (Sep) earnings of $0.65 per share, in-line with the Reuters Estimates consensus of $0.65; revenues rose 13.4% year/year to $261.5 mln vs the $254.2 mln consensus. Co reaffirms non-regulated subsidiary earnings per share from continuing operations of $0.10-0.15.
08:06 BRY Berry Petroleum beats by $0.08, reports revs in-line (45.35 )
Reports Q3 (Sep) earnings of $0.65 per share, excluding non-recurring items, $0.08 better than the Reuters Estimates consensus of $0.57; revenues rose 3.2% year/year to $133.5 mln vs the $132.3 mln consensus. CEO says, “Our natural gas production is growing, and comprised 27% of our total production in the third quarter of 2007 compared to 24% in the second quarter. The overall impact on our operating income due to lower gas prices is reduced due to our significant natural gas consumption for steaming operations in California and the natural gas hedges that we have in place. We estimate that for 2008, a $1.00 per MMBtu change in NYMEX Henry Hub natural gas prices would result in only a $3 million change in annual net income, demonstrating our relative insensitivity to natural gas prices company-wide. For 2008, we are hedged at an average $6.26 per MMBtu on Colorado Interstate Gas pricing on volume of approximately 18,300 MMBtu/d.”
08:06 TUES Tuesday Morning reports EPS in-line, misses on revs; guides FY08 EPS in-line, revs in-line (7.09 )
Reports Q1 (Sep) earnings of $0.03 per share, in-line with the Reuters Estimates consensus of $0.03; revenues rose 3.8% year/year to $201.7 mln vs the $204.2 mln consensus. Co issues in-line guidance for FY08, sees EPS of $0.85-0.90 vs. $0.74 consensus; sees FY08 revs of $987-997 mln vs. $974.54 mln consensus. “We are positioned to meet our goal to profitably grow sales and produce positive operating cash flow in the second quarter.”
08:06 RIMM Research In Motion tgt raised to $146 from $114 at BofA-based upon recent channel checks and higher Smartphone market growth. (121.20 )
08:06 CSTR Coinstar: Merriman recommends purchase ahead of positive Wal-Mart news and Redbox IPO trigger period (34.08 )
Merriman notes CSTR is scheduled to report 3Q07 results on Thursday, Nov 1. Firm is projecting 3Q07 rev of $147.3 mln and GAAP EPS of $0.19 (consensus ests of $147.4 mln and $0.20). Although firm believes CSTR’s amusement business may remain weak during 3Q (and potentially weaker than their ests), they believe solid results from coin-counting and Redbox will offset that weakness — leading to 3Q results that are at least in line with expectations. Firm expects positive details on Wal-Mart (WMT) rollout. Firm also notes the Redbox trigger period begins Dec 1.
08:05 HNAB Hana Biosciences receives $30 million funding commitment from Deerfield Management (1.32 )
Co announces that Deerfield Management, a healthcare investment fund, has committed up to $30 mln in funding, including $7.5 mln upfront, to assist with financing the development of the co’s pipeline of product candidates. Deerfield’s commitment of up to $30 mln is in the form of an interest-bearing loan that can be drawn down at pre-determined intervals over a three-year period. Hana will immediately draw down $7.5 mln. The availability of one-third of the $30 mln is subject to the achievement of specific milestones associated with the development of the co’s Marqibo and menadione product candidates. “This financing commitment provides us the resources to advance our pipeline of product candidates through the next stages of development and potential value formation,” said Steven Deitcher, M.D., President and CEO of HNAB.
08:04 RIG prelim $3.24, may not compare to $1.99 Reuters consensus; revs $1.54 bln vs $1.50 bln Reuters consensus
08:04 BRY prelim $0.65 vs $0.57 Reuters consensus; revs $134 mln vs $132.33 mln Reuters consensus
08:04 VRUS Pharmasset enters antiviral research collaboration with the University of Cincinnati’s Genome Research Institute (14.18 )
Co announces that it has entered into a research collaboration and license agreement with the University of Cincinnati on behalf of its Genome Research Institute. The purpose of the collaboration between Pharmasset and GRI’s drug discovery professionals is to identify active and selective compounds against antiviral targets for hepatitis B virus, hepatitis C virus and human immunodeficiency virus.
08:04 GPCB GPC Biotech: Hearing downgraded to sell from neutral at tier 1 firm (11.44 )
08:03 ANR prelim $0.14 vs $0.13 Reuters consensus; revs $507.13 mln vs $446.16 mln Reuters consensus
08:03 IDA reaffirms non-regulated subsidiary earnings per share from continuing operations of $0.10-0.15
08:03 PEG Public Service announces that PSEG Global to sell ownership interests in Chilquinta Energia and Luz Del Sur (93.28 )
PSEG Global, an indirect subsidiary of PSEG (PEG). announces that it has signed an agreement to sell its 50% ownership interest in the Chilean electric distributor Chilquinta Energia and its affiliates and its 38% ownership interest in the Peruvian electric distributor, Luz del Sur and its affiliatesto a subsidiary of A.E.I., for $685 mln. As of June 30, 2007, PSEG’s proportionate share of these investments had net debt of $200 mln, yielding an aggregate transaction value of $885 mln. The transaction is expected to generate a pretax gain that will be offset by tax expense equal to or slightly in excess of the gain on the transaction. After-tax net cash proceeds are expected to total between $480 mln to $500 mln. Over the twelve months ended June 30, 2007, PSEG’s proportionate interests in Chilquinta and Luz del Sur produced approx $90 mln of EBITDA. The sale of these assets is expected to result in a dilution of PSEG’s future earnings per share of up to $0.10 annually.
08:02 VTAL Vital Images downgraded to Market Weight from Overweight at Thomas Weisel (17.28 ) -Update-
08:02 IDA prelim $0.65 vs $0.65 Reuters consensus; revs $261.5 mln vs $254.21 mln Reuters consensus
08:02 EVVV EV3 announces agreements in principle to settle patent litigation (15.27 )
Co announces that it and its subsidiaries reached agreements in principle to resolve patent infringement and other litigation with The Regents of the University of California and Boston Scientific (BSX). Under the terms of the agreements in principle, all claims by all parties will be dismissed with prejudice, ev3 will not be required to stop selling any of its existing product lines, ev3 will not be required to make any future royalty payments and ev3 will make a one-time payment of approximately $11.7 mln to the University of California and a one-time payment of approximately $3.7 mln to Boston Scientific. As a result of the agreements in principle, ev3 has taken a $20.2 million special charge in third quarter 2007 for amounts expected to be paid by ev3 to the parties and attorneys fees and expenses associated with the litigation.
08:02 CRS Carpenter Tech beats by $0.13, beats on revs (133.90 )
Reports Q1 (Sep) earnings of $2.24 per share, $0.13 better than the Reuters Estimates consensus of $2.11; revenues rose 17.4% year/year to $475 mln vs the $454.1 mln consensus.
08:02 VC Visteon earnings color (5.86 ) -Update-
Reuters Estimates is telling us that an actual of ($0.73), excluding Asset impairments, is comparable to their consensus of ($1.02).
08:02 JPM JP Morgan Chase says Chase boosts mortgage originations 35% in Q3 (46.56 )
Chase announces that it originated $39.2 bln in mortgages in the third quarter, ending Sept. 30, up 35% from a year earlier, as it helps fill consumers’ need for home loans. For the first nine months of 2007, Chase’s originations are up 33.6% to $119 bln.
08:01 ROC sees Y07 sales up approx 10%, with an adjusted EBITDA margin of 19-19.5%
08:01 AUY Yamana Gold downgraded to Neutral from Buy at UBS (14.79 )
08:01 PTT VCG Holding guides Q3 above single analyst estimate (11.17 ) -Update-
Co announces that it expects to report Q3 EPS of $0.15-0.17 vs single analyst estimate of $0.11. Co indicates the timing of this guidance coincides with an investor presentation today in NY and tomorrow in Boston.
08:01 BEAV BE Aerospace tgt raises to $56 at Calyon (47.04 )
Calyon raises their tgt on BEAV to $56 from $51. Firm believes the strong market outlook and backlog for BEAV’s products will continue to drive a high organic growth rate and provide excellent visibility for several years. Meanwhile, earnings growth will also be driven by continuing margin expansion. Firm maintains their positive investment thesis on BEAV’s stock of strong topline growth and continuing margin improvements driving even better earnings.
08:01 INVC Innovative Card announces that Charles Caporale is named Chief Financial Officer (3.00 )
Co announces that Charles Caporale has joined the company as CFO effective Oct 29, 2007. Caporale replaces Bennet Tchaikovsky, who will serve as consultant to INVC during the transition.
08:00 ROC prelim $0.42 vs $0.43 Reuters consensus; revs $829.6 mln vs $808.61 mln Reuters consensus
08:00 S&P futures vs fair value: +4.9. Nasdaq futures vs fair value: +2.0.
Futures point to a positive start as the market awaits the FOMC policy statement at 14:15 ET. Kraft (KFT) and Clorox (CLX) topped their earnings expectations and provided reassuring guidance. Meanwhile, Dell restated its results for fiscal 2003 to fiscal 2007. Dell also said it will resume its buyback program after it reports third quarter results. The GDP and Employment Cost Index are set to be released at 8:30 ET
08:00 CRS prelim $2.24 vs $2.11 Reuters consensus, $2.10 First Call; revs $475.0 mln vs $454.10 mln Reuters consensus, $442.20 mln First Call
07:59 PNW Pinnacle West downgraded to Underweight from Neutral at J.P Morgan (40.69 )
07:59 ENR Energizer: Upgrade details (102.24 )
As mentioned at 7:11, Bear Stearns upgraded ENR to Peer Perform from Underperform following earnings yesterday. The firm while notes while they cannot ignore an increased debt load, and the heightened incumbent integration risks that the Playtex acquisition has triggered , or a current valuation that appears to discount perfection, the co does appear to have improved and better-balanced its growth prospects with the purchase of Playtex, thus not warranting an Underperform rating.
07:58 CMG Chipotle Mexican Grill: Does it again in 3Q; but guides towards decelerating comps - Morgan Joseph (133.50 ) -Update-
Morgan Joseph says while they believe CMG remains well-positioned over the L.T. on the strength of its operating strategies and efficiencies, accelerating new unit openings, and announced international development, they acknowledge that decelerating comps, continued commodity pressures, and higher expected G/A put slightly more pressure on the co’s ability to outperform to the same extent that it has, or will be expected to. Given the stock’s valuation at 22.5x 2008E EV/EBITDA, they maintain their Hold rating. (See 7:44 and 7:55 comments for CMG tgt raises from other firms)
07:58 TEN Tenneco upgraded to Outperform at Wachovia (30.16 )
Wachovia upgrades TEN to Outperform from Market Perform saying the shares are off 19% since early August. They think material margin expansion opportunity is available in 2008. Firm says the ‘bears’ concerns about S.C.R technology are overblown, and commercial exhaust contract wins represents incremental revenue for the company.
07:56 CROX Crocs: 3Q07 earnings preview; raising ests and tgt to $77 - Nollenberger (72.09 ) -Update-
Nollenberger notes it is their belief that CROX has created a category in footwear and has outgrown its fad stage. They believe the velocity of the brand remains outstanding. Firm believes CROX’s hybrid shoe continues to reinvent itself and has become a household staple for many consumers. Given the demand for the product and its continued opportunity in the marketplace, they believe CROX has room for continued earnings growth. Firm reiterates their Buy rating and increases their 12-month tgt to $77 from $64.
07:55 CMG Chipotle Mexican Grill tgt raised to $150 from $100 at Piper Jaffray, following earnings, saying CMG exceeds expectations even in difficult market conditions (133.50 ) -Update-
07:54 SPW SPX Corp beats by $0.16, reports revs in-line; guides FY07 EPS above consensus (93.05 )
Reports Q3 (Sep) earnings of $1.36 per share, excluding non-recurring items, $0.16 better than the Reuters Estimates consensus of $1.20; revenues rose 19.3% year/year to $1.23 bln vs the $1.24 bln consensus. Co issues upside guidance for FY07, sees EPS of $4.70-4.80, compared to previous guidance of $4.50-4.70, vs. $4.69 consensus.
07:54 XPRT LECG Corp upgraded to Market Perform from Underperform at William Blair (14.89 )
07:54 MGM MGM Mirage tgt raised to $107at Nollenberger Capital (91.29 ) -Update-
Nollenberger Capital raises theit tgt on MGM to $107 from $93.50. Firm notes MGM’s large bank of underutilized and undeveloped land in Nevada (particularly on the Las Vegas Strip) and in Atlantic City should not go unnoticed. Moreover, the co’s decision to pursue strategic partnerships to create shareholder value also needs to be accounted for.
07:54 LFUS Littelfuse beats by $0.05, beats on revs; guides Q4 EPS below consenus guides FY08 EPS below consensus (34.07 )
Reports Q3 (Sep) earnings of $0.48 per share, excluding non-recurring items, $0.05 better than the Reuters Estimates consensus of $0.43; revenues fell 2.2% year/year to $140.2 mln vs the $137 mln consensus. Co issues downside guidance for Q4, sees EPS of $0.33-0.37 vs. $0.39 consensus. Co issues downside guidance for FY08, sees EPS of $1.80-1.90 vs. $2.05 consensus.
07:53 SPW sees FY07 $4.70-4.80 vs $4.69 Reuters consensus
07:53 SPW prelim $1.36 vs $1.20 Reuters consensus; revs $1.23 bln vs $1.24 bln Reuters consensus
07:51 NKE Nike: Sports Direct lifts Umbro stake to 29.9% - FT (64.93 )
FT reports Mike Ashley on Tuesday took on Nike, the world’s biggest sportswear brand, by doubling his retail chain’s stake in Umbro, in an audacious gambit to safeguard his interests in the maker of England football shirts. The retail billionaire’s Sports Direct raised its stake to 29.9% just days after Nike agreed to a 285 mln pounds take-over of the co in an effort to become the world’s biggest football brand. Late Tuesday, Nike was considering its options and may lower the acceptance threshold to 50% to push the deal through. However, sources close to Mr Ashley said the entrepreneur did not necessarily want to scupper any deal but wanted a say in Umbro’s future. “He wants to maintain a strategic stake, and the level of that strategic stake has gone up,” said one person familiar with the situation.
07:51 SIRF SiRF Technology: Color on quarter (23.30 )
Montgomery notes SIRF reported a stellar quarter, beating both firm’s top-line and pro forma EPS ests. Strength in the quarter came from all of its businesses. Continuing growth of the PND market continues to trickle down nicely for SiRF, and the increase in the handset business also helped drive strong top-line performance. The Centrality acquisition also contributed higher than expected rev although the sale of Centrality inventory dragged down GAAP gross margins. This situation should correct itself in the Dec quarter. Firm raises their ests and also increases their tgt from $25 to $31… RBC is increasing their ests, tgt and maintaining Outperform rating. Firm notes SIRF beat Q3 ests driven by stronger Centrality revs, strong PND end market and wireless unit growth. Continued strength in PND market, they believe, is driving strong Q4 guidance. Firm is encouraged by consistent gross margins despite some very aggressive pricing pressures in the PND segment. They believe SiRF has reclaimed some market share lost in Q2. Firm raises their rev ests for CY07 ($319 mln to $330 mln) and CY08 ($425 mln to $434 mln). Based on higher revs and lower than expected tax rates, firm is now modeling CY07 EPS at $1.04 (from $0.90) and CY08 EPS at $1.26 (from 1.16). Firm raises their tgt from $26 to $28.
07:50 EQIX Equinix upgraded to Outperform from Sector Perform at CIBC (99.62 )
07:50 LFUS sees Q4 $0.33-$0.37 vs $0.39 Reuters consensus; sees revs declining approx 5% sequentially
07:49 LVS Las Vegas Sands: Downgrade details (138.03 )
As mentioned at 6:43 Lehman downgrades LVS to Equal Weight from Overweight saying while they understand why the stock trades where it does, they cannot justify a higher valuation at this point in time based on the data points currently at hand.
07:48 WYNN Wynn Resorts: Color on quarter (167.90 ) -Update-
Bear Stearns notes WYNN reported solid 3Q07 results. Despite upside to their property level ests at both Wynn Las Vegas and Wynn Macau, they do not believe 3Q results met expectations given that shares were up ~12% over the past 7 trading days. While firm continues to like WYNN’s growth pipeline, the return potential of its future projects, and its continued focus on its niche high-end gaming luxury segment, they believe current levels fully reflect these positives… JP Morgan was encouraged by the continued sequential increase in VIP volume and flattish sequential mass results despite the opening of the Venetian Macao. Firm expects the stock to be volatile around LVS’s 3Q result on Thurs, and would use any substantial price declines (10%) as a buying opportunity. Firm says initial investor reaction has been negative because WYNN did not beat EBITDA ests and investor expectations were very high. They believe the next move in WYNN’s stock is tightly correlated to LVS’s results on Thurs. By now investors know that 1-2 times per year there are periods of weakness in the stock (and Macau related shares in general) due to near-term concerns and the overall share price volatility of these names.
07:47 AVA Avista earnings color (21.90 ) -Update-
Reuters Estimates is telling us that an actual of ($0.03), excluding unamortized debt repurchase costs, is comparable to their consensus of $0.00.
07:47 NVO Novo-Nordisk reports it increased operating profit by 11% in the first nine months of 2007 based on a 9% sales increase and an improved gross margin (118.11 )
Co announces that it increased sales by 14% in local currencies and by 9% in Danish kroner due to a significant negative currency development. Gross margin increased to 76.7% in the first nine months of 2007 up from 75.2% in the same period last year, primarily reflecting continued productivity improvements. The expectation for full-year sales growth is still 11-14% measured in local currencies and now 6-9% as reported due to the depreciation of key invoicing currencies.
07:47 PACR Pacer Intl downgraded to Hold at Keybanc (15.29 )
Keybanc downgrades PACR to Hold from Buy following earnings. The firm says while several parts of their original thesis are playing out (improved cost structure, improved logistics segment margins, solid cash flow), 3Q07 results indicate fundamentals for PACR’s intermodal business are deteriorating faster than they anticipated, making a turnaround more challenging.
07:47 HES Hess earnings color (68.76 ) -Update-
Reuters Estimates is telling us that adjusted for estimated production imbalance settlements of $33 mln, an actual of $1.35 is comparable to their consensus of $1.36. See 7:36 comment for full report.
07:46 LFUS sees FY08 $1.80-$1.90 vs $2.05 Reuters consensus; sees revs to increase 6%-8%, gross margins to by approx flat with 2007
07:45 AKAM Akamai Tech: Downgrade details (39.74 )
As mentioned at 6:43, Deutsche Bank downgraded AKAM to Hold from Buy and raised their tgt to $40 from $37, based on valuation and growth and margin concerns following analyst day yesterday. The firm says organic growth has decelerated, the long-term margin structure is still unclear given the dynamics in media & entertainment and the co’s capital efficiency does not appear to be significantly improving in light of the adoption of high definition video.
07:45 LDK LDK Solar: Downgrade details (38.55 )
As mentioned at 7:00 Piper Jaffray downgraded LDK to Market Perform from Outperform and cut their tgt to $34.50 from $52 saying they anticipate higher blended poly cost for LDK due to 1) tightening scrap poly supply, and 2) Increased competition for scrap from competitors. The firm says the lower multiple reflects their revised outlook for reduced earnings and profitability. It also reflects some lack of visibility with respect to its longer term polysilicon supply and price.
07:45 LFUS prelim $0.48 vs $0.43 Reuters consensus; revs $140.2 mln vs $136.97 mln Reuters consensus
07:44 CMG Chipotle Mexican Grill tgt raised to $150 at CIBC following results (133.50 )
CIBC notes CMG reported Q3 EPS of +73% to $0.62, handily outpacing $0.53 CIBC/Street est. CMG has now delivered 8 consecutive quarters of meaningful upside (avg. of $0.08 per quarter). SSS +12.7% (included +10.1% traffic) vs. their 10.5% est. CMG needed big upside to hold on to nosebleed valuation (2X PEG) and got it in their view. Firm ntoes expectations were high, and CMG delivered. Although ‘08 margin expansion is expected to meaningfully slow from blistering pace seen in ‘06 & ‘07–ests. headed up again thanks to another quarter of upside. Firm raises ‘07 to $2.15 from $2.00 and ‘08 to $2.70 from $2.50. Also raises tgt to $150 from $140.
07:43 BCSI Blue Coat downgraded to Hold at Roth Capital - tgt $42 (41.99 )
Roth Capital downgrades BCSI to Hold from Buy and raises their tgt to $42 from $40, as they expect a solid October quarter, however, while they continue to expect Blue Coat to take share in the WAN Application Delivery market, they feel shares are appropriately priced given multiple contraction in the sector and their estimated growth rates.
07:42 CLX Clorox earnings color (61.00 ) -Update-
Reuters Estimates is telling us that an actual of $0.76 is comparable to their consensus of $0.62. See 7:17 comment for full report.
07:42 FMS Fresenius Medical reports Q3 EPS of $0.61 vs $0.61 Reuters consensus; revs rose 9% YoY to $2.43 bln vs $2.43 bln Reuters consensus (51.42 )
07:42 ID L-1 Identity Solutions reports EPS in-line, beats on revs; guides Q4 EPS essentially in-line; guides FY08 revs above consensus (18.00 )
Reports Q3 (Sep) earnings of $0.02 per share, in-line with the Reuters Estimates consensus of $0.02; revenues rose 190.2% year/year to $115.5 mln vs the $108.1 mln consensus. Co issues in-line guidance for Q4, sees EPS of $0.04-0.10 vs. $0.10 consensus; sees Q4 revs of $120-130 mln vs. $127.6 mln consensus. Co issues upside guidance for FY08, sees FY08 revs of $540-560 mln vs. $509.5 mln consensus.
07:41 COL Rockwell Collins beats by $0.04, beats on revs; guides FY08 EPS in-line, revs in-line (73.86 )
Reports Q4 (Sep) earnings of $0.93 per share, $0.04 better than the Reuters Estimates consensus of $0.89; revenues rose 15.6% year/year to $1.23 bln vs the $1.17 bln consensus. Co issues in-line guidance for FY08, sees EPS of 3.80-3.95 vs. $3.90 consensus; sees FY08 revs of 4.70-4.75 vs. $4.77 bln consensus.
07:41 CROX Crocs tgt raised to $77 from $64 at Nollenberger (72.09 )
Nollenberger raises their tgt on CROX to $77 from $64 saying Crocs has created a category in footwear and has outgrown its fad stage. The firm says the velocity of the brand remains outstanding, and they believe Crocs’s hybrid shoe continues to reinvent itself has become a household staple for many consumers. Given the demand for the product and its continued opportunity in the marketplace, they believe Crocs has room for continued earnings growth.
07:41 PMTC Parametric beats by $0.12, beats on revs; guides Q1 & FY08 in-line (17.72 )
Reports Q4 (Sep) earnings of $0.38 per share, excluding non-recurring items, $0.12 better than the Reuters Estimates consensus of $0.26; revenues rose 9.0% year/year to $266.7 mln vs the $246.1 mln consensus. Co issues in-line guidance for Q1, sees EPS of $0.20-0.25 vs. $0.23 consensus; sees Q1 revs of $230-240 mln vs. $236.67 mln consensus. Co issues in-line guidance for FY08, sees EPS of $1.05-1.15 vs. $1.05 consensus; sees FY08 revs of $1 bln vs. $1 bln consensus.
07:40 WYNN Wynn Resorts: Jefferies comments on earnings, believe stock has gotten ahead of itself (167.90 )
Jefferies notes that WYNN reported adjusted 3Q07 EPS of $0.67, missing their $0.81 estimate and beating consensus of $0.63, and EBITDA (subsequent to corporate expense) of $174 mln, missing their forecast by $22 mln as Wynn Las Vegas did not capture as much market share as they were anticipating. While long-term they see tremendous value in the co, the stock is up 73% since August 1, and they believe it has gotten ahead of itself. Firm raises their WYNN tgt to $152 from $143.
07:40 MGM MGM Mirage: Pullback provides opportunity - Calyon (91.29 )
Calyon says despite a 3Q07 miss, firm continues to see a positive risk/reward trade-off at current levels given the numerous value-enhancing opportunities available to MGM, as well as continued interest by Dubai World to increase its equity stake in the co (which should provide support to the shares and limit downside risk). Firm would use weakness in the shares to add to positions. Firm is lowering their 4Q07 EPS est to $0.50 from $0.54, which largely reflects reduced expectations at Bellagio and increased corporate expenses.
07:39 CLX Clorox to acquire Burt’s Bees (61.00 )
In addition to earnings, the co announces it will acquire Burt’s Bees, a leader in the natural personal care category. Clorox will acquire 100% of Burt’s Bees from its stockholders in a transaction that is structured as a merger. The co is acquiring Burt’s Bees for $925 mln net of an additional $25 mln payment for anticipated tax benefits. Clorox will fund the all-cash transaction through a combination of cash and short-term borrowings. Including ests of purchase-accounting adjustments and one-time transaction and integration costs related to the transaction, the co anticipates that the transaction will dilute its fiscal year 2008 earnings by about 10-15 cents per diluted share and that it will be slightly accretive in fiscal year 2009. Excluding such purchase-accounting adjustments, one-time transaction and integration costs as well as non-cash expenses related to the transaction, the earnings per share impact is anticipated to be neutral in fiscal year 2008 and solidly accretive in fiscal year 2009.
07:39 BONDX Mortgage Applications
The weekly MBA mortgage applications index was up 3.8% last week, with purchasing applications down by -0..7% & refis up by 9.2%. The fixed 30-yr mortgage rate was down at 6.15% while the 15-yr dropped to 5.79% & 1-yr adjustable rate mortgage dipped to 5.93%.
07:39 OSCI Oscient Pharma misses by $0.56, reports revs in-line; guides FY07 revs above consensus (1.91 )
Reports Q3 (Sep) loss of $1.43 per share, $0.56 worse than the Reuters Estimates consensus of ($0.87); revenues rose 25.8% year/year to $15.6 mln vs the $15.5 mln consensus. Co issues upside guidance for FY07, sees FY07 revs of $79-82 mln vs. $76.41 mln consensus.
07:38 PRICE Filings, Offerings, Pricings and IPOs
Filings: XTL Biopharma (XTLB) files for a 7.24 mln ADS offering by selling shareholders… BabyUniverse (POSHD) files for a 1.12 mln share common stock offering by selling shareholders… Enersys (ENS) files for a mixed shelf offering… Pricings: Infinera (INFN 22.65) prices a 10 mln share common stock offering at $22/share… IPOs: 012 Smile.Communications (SMLC), an Israeli broadband Internet co, prices its 6.675 mln share IPO at $12/share, below the forecast range of $14-$16/share.
07:37 SAF SAFECO: Q3 mostly in-line; raising auto rates to negate rising BI severity - Calyon (57.48 )
Calyon notes SAF reported Q3 earnings of $1.51 that was a tad light of the latest consensus est of $1.54, but ahead of their est of $1.47. The co announced they have raised auto rates by roughly 3% in an attempt to recapture higher-than-expected BI claims. Firm notes shares traded down on the heels of its earnings release, which they believe was in-line with consensus ests. The decline may be linked to an up-tick in auto bodily injury severity, an event the cohas already moved to remedy. The co continued its aggressive capital mgmt program by buying back over 10 mln shares through last week.
07:37 ICON Iconix Brand beats by $0.02, slight miss on revs; guides FY07 in-line, but FY08 guidance above range (18.91 )
Reports Q3 (Sep) earnings of $0.28 per share, $0.02 better than the Reuters Estimates consensus of $0.26; revenues rose 93.0% year/year to $42.7 mln vs the $44.0 mln consensus. Co issues in-line guidance for FY07, sees EPS at high end of $0.96-1.00 vs. $1.00 consensus; sees FY07 revs at high end of $150-160 mln vs. $161.2 mln consensus. Co issues upside guidance for FY08, sees EPS of $1.35-1.40 vs. $1.33 consensus; sees FY08 revs of $240-250 mln vs. $219.9 mln consensus.
07:37 SBGI Sinclair Broadcast beats by $0.03, beats on revs (12.16 )
Reports Q3 (Sep) earnings of $0.11 per share, $0.03 better than the Reuters Estimates consensus of $0.08; revenues rose 6.2% year/year to $176.7 mln vs the $164.9 mln consensus.
07:36 HES Hess reports Q3 (Sep) results, beats on revs (68.76 )
Reports Q3 (Sep) earnings of $1.23 per share, includes charges of $33 mln for production imbalance resulting from adjustments to meter readings at two offshore fields, may not be comparable to the Reuters Estimates consensus of $1.36; revenues rose 6.7% year/year to $7.5 bln vs the $6.77 bln consensus.
07:36 PMTC Parametric to acquire product development software provider CoCreate for $250 Million; expected to be dilutive to GAAP EPS in ‘08 (17.72 )
Co announces it has entered into a definitive agreement to acquire CoCreate Software, a provider of P.L.M. and C.A.D. modeling solutions for approx $250 mln. With rev of approx $80 mln and substantial non-GAAP operating margins in the last twelve months, PMTC expects the acquisition will be accretive to non-GAAP earnings and operating margins in 2Q08. Due to the lower level of deferred maintenance rev that PMTC will be permitted to record under purchase accounting as compared to the level of deferred maintenance revenue recorded by CoCreate, PMTC expects that the acquisition will be dilutive to GAAP EPS in 2008, but accretive to GAAP EPS in 2009 and beyond.
07:35 SEH Spartech Corp lowers Q4 EPS guidance driven by a weak sales environment coupled with challenging resin prices and other specific items (17.02 )
As mentioned at 7:33, SEH lowered its Q4 EPS guidance before the impact of special items, are now expected to be at or about breakeven (may not be comparable to $0.28 consensus). The revised quarterly guidance is driven by a weak sales environment coupled with challenging resin prices and other specific items impacting the quarter. The relative strength in many of the international economies, the weakening of the US dollar, and rising crude oil prices have put additional pressure on our margins. In addition to the current market conditions, several other items are impacting our results in Q4, including: start-up issues associated with the consolidation of three existing manufacturing facilities into our new Greenville facility, inventory value adjustments, and foreign currency translation losses due to the weakening of the US dollar relative to the Canadian dollar.
07:35 IACI InterActive beats by $0.02, reports revs in-line (28.39 )
Reports Q3 (Sep) earnings of $0.37 per share, excluding non-recurring items, $0.02 better than the Reuters Estimates consensus of $0.35; revenues rose 7.4% year/year to $1.52 bln vs the $1.53 bln consensus.
07:35 SSYS Stratasys misses by $0.02, misses on revs; guides FY07 EPS in-line, revs in-line (29.42 )
Reports Q3 (Sep) earnings of $0.16 per share, excluding non-recurring items, $0.02 worse than the Reuters Estimates consensus of $0.18; revenues rose 5.4% year/year to $26.5 mln vs the $27 mln consensus. Co issues in-line guidance for FY07, sees EPS of $0.70-0.75 vs. $0.73 consensus; sees FY07 revs of $109-112 mln vs. $112.49 mln consensus.
07:34 WIRES On The Wires
Citi (C) announce that Citigroup Japan Holdings and Nikko Cordial have signed a definitive share exchange agreement to reflect the final terms of the previously announced share exchange transaction in which Nikko Cordial will become a 100%-owned subsidiary of C… La Jolla Pharmaceutical (LJPC) announces that it will present data from its March 2007 interim antibody analysis on Riquent, its drug candidate for systemic lupus erythematosus, at the annual meetings of the American Society of Nephrology on Saturday, Nov 3rd and the American College of Rheumatology on Nov 8th.
07:34 SFLY Shutterfly tgt raised to $41 from $32 at Cantor Fitzgerald (36.40 )
Cantor Fitzgerald raises their tgt on SFLY to $41 from $32 following earnings and based on the co’s ongoing customer, product, and order momentum, fueled by an explosion of interest in digital photography, an expanding product set, new relationships, a new production facility, and competitive shifts.
07:34 NTMD NitroMed beats by $0.03, misses on revs (1.52 )
Reports Q3 (Sep) loss of $0.18 per share, $0.03 better than the Reuters Estimates consensus of ($0.21); revenues rose 11.8% year/year to $3.8 mln vs the $4.4 mln consensus.
07:33 PMTC sees Q1 $0.20-0.25 vs $0.23 Reuters consensus; sees revs $230-240 mln vs $236.67 mln Reuters consensus
07:33 PMTC sees FY08 $1.05-1.15 vs $1.05 Reuters consensus; sees revs $1 bln vs $1.00 bln Reuters consensus
07:33 COL sees FY08 $3.80-3.95 vs $3.90 Reuters consensus; sees revs $4.70-4.75 mln vs $4.77 bln Reuters consensus
07:33 ICON sees FY08 $1.35-1.40 vs $1.33 Reuters consensus; sees revs $240-250 mln vs $219.9 mln Reuters consensus
07:33 NTMD prelim ($0.1 
vs ($0.21) Reuters consensus; revs $3.8 mln vs $4.39 mln Reuters consensus
07:33 COL prelim $0.93 vs $0.89 Reuters consensus; revs $1.23 bln vs $1.17 bln Reuters consensus
07:33 BMS Bemis downgraded to Hold from Buy at Deutsche Bank (28.29 )
07:33 SEH now sees Q4 EPS to be at or about breakeven, before the impact of special items
07:32 ICON sees FY07 at high end of $0.96-1.00 vs $1.00 Reuters consensus; sees revs at high end of $150-160 mln vs $161.2 mln Reuters consensus
07:32 PMTC prelim $0.38 vs $0.26 Reuters consensus; revs $266.7 mln vs $246.07 mln Reuters consensus
07:32 OSCI sees FY07 revs $79-82 mln vs $76.41 mln Reuters consensus
07:32 SEH lowers 2007 earnings guidance
07:32 ID sees Q4 $0.04-0.10 vs $0.10 Reuters consensus; sees revs $120-130 mln vs $127.58 mln Reuters consensus
07:31 IACI prelim $0.37 vs $0.35 Reuters consensus; revs $1.52 bln vs $1.53 bln Reuters consensus
07:31 SBGI prelim $0.11 vs $0.08 Reuters consensus; revs $176.69 mln vs $164.91 mln Reuters consensus
07:31 OSCI prelim ($1.43), may not be comparable to ($0.87) Reuters consensus; revs $15.6 mln vs $15.50 mln Reuters consensus
07:31 ICON prelim $0.28 vs $0.26 Reuters consensus; revs $42.7 mln vs $44.0 mln Reuters consensus
07:31 TBBK The Bancorp: Lowering EPS, but still a solid growth story - FBR (18.37 )
Friedman Billings cuts their cut tgt on TBBK to $21 from $25 and their FY07 and FY08 EPS ests by $0.02 and $0.25, to $1.08 and $1.35, respectively, primarily to account for their expectation for lower NIM, slower loan growth, and higher provision expense in FY08 vs their prior ests. While they now expect the ramp-up in the co’s affiliate programs to take much longer to contribute meaningfully to balance sheet growth, firm continues to expect solid performance from the private bank, and they remain cautiously optimistic on the credit front.
07:31 ID prelim $0.02 vs $0.02 Reuters consensus; revs $115.5 mln vs $108.13 mln Reuters consensus
07:31 HES prelim $1.23 may not be comparable to $1.36 Reuters consensus; revs $7.5 bln vs $6.77 bln Reuters consensus
07:30 SSYS sees FY07 $0.70-0.75 vs $0.73 Reuters consensus; sees revs $109-112 mln vs $112.49 mln Reuters consensus
07:30 SSYS prelim $0.16 vs $0.18 Reuters consensus; revs $26.5 mln vs $27.03 mln Reuters consensus
07:30 SVR Syniverse Holdings initiated with a Buy at Brean Murray- tgt $24 (17.57 )
Brean Murray initiates SVR with a Buy and a $24 tgt saying the planned $290 mln acquisition of BSG Wireless and the 2006 acquisition of Hong Kong-based ITHL strengthens the co’s leadership position and service offerings while increasing revenue and model leverage opportunities. The firm says the co is positioned to benefit from wireless subscriber growth, increased roaming traffic, and proliferation of wireless data and content services.
07:30 CEG Constellation Energy announces a $1 bln share repurchase program (95.70 ) -Update-
The co announces, in addition to earnings, that its board of directors authorized a $1 bln share repurchase program, which is expected to be executed over the next 24 months. Further, Constellation Energy is executing on $250 mln of the program through an accelerated share repurchase agreement. The remainder of the share repurchase program is expected to be implemented in a manner that preserves the flexibility to pursue additional investment opportunities.
07:29 RIG Earnings Preview: Transocean (114.57 )
Transocean reports Q3 results today before the open and it should be a stellar quarter by all accounts. Market conditions remain strong within the offshore drilling market, particularly within the floater market. The trend of stronger for longer this cycle continues defying expectations, extending the upcycle to the end of this decade barring an economic recession and a $45-$55/b oil price. RIG’s allure is its exposure to the deepwater and ultra deepwater water segment where large reserves can be found. Global E&Ps continue to sign longer term contracts at record day rates resulting in unprecedented visibility in the industry which has enables multiple expansion in stocks. RIG also has no exposure to weaker markets, like the onshore and shallow GOM. For the last two quarters, RIG has produced upside results driven by higher dayrates, coupled with acceptable operating expenditures (which had been an issue last year) despite ongoing maintenance and new build construction. Last quarter, RIG reported a 13 cent upside surprise in earnings. Forward guidance and the co’s conference call will likely be very bullish. During Q2 call, co stated it anticipated “meaningful” increases in dayrates driving revenues in 2H07 and early part of ‘08. Total backlog as of Aug stood at $21.4 bln. At an industry conference in Sept, a co representative stated RIG will generate $1.25 bln in revenue every quarter (RIG has so far easily exceed this level). As for EPS, consensus estimate is $1.99 on EPS compared to $1.84 and $1.77 over the last quarters. Market participants will be looking for commentary on new contract rates, particularly ultra deepwater, and on the jackup market (whispers co may sell these assets post GSF integration). In addition, to further insight into recently announced exercised options for a 50% jv for two drillships for ‘09 delivery.
07:29 Q Qwest: Downgrade details (7.06 )
As mentioned at 7:00 CIBC downgraded Q to Sector Perform from Outperform following earnings. The firm says their thesis on Q as a FCF story with significant potential for margin improvement and shareholder-friendly initiatives for cash returns has been broken, as they believe the new CEO will likely invest in growth, dampening FCF.
07:27 VTAL Vital Images: Downgrade details (17.28 )
As mentioned at 7:00 CIBC downgraded VTAL to Sector Perform from Outperform and cut their tgt to $19 from $29 following earnings, which though roughly as expected, came with a further downward revision in guidance. The firm says although cash on hand and take-out value put likely floor on valuation, a challenging competitive environment limits upside.
07:27 HERO Hercules Offshore: Solid results in wake of TODCO acquisition - Calyon (25.56 )
Calyon notes HERO reported 3Q07 operating EPS of $0.61, which was above their est of $0.56 and the consensus of $0.57. This upside surprise was attributable to the increased operating activities from the TODCO acquisition coupled with execution of the co’s low-cost operating strategy. Due to lower utilization and day rates as a result of continued GOM softness, firm is reducing their 4Q07 and 2008 EPS ests to $0.68 and $3.85, from $0.77 and $4.20, respectively.
07:26 VPHM ViroPharma: Q3 Vancocin sales light, but sales force efforts and revised CDAD guidelines should drive growth in 2008 - Lazard (8.64 )
Lazard notes VPHM reported Q3 EPS of $0.26 vs. their est of $0.31 and consensus of $0.28, including options expense; delta due primarily to higher income tax expense. Q3 Vancocin sales totaled $50.9 mln, below their $52.6 mln est. Firm reduces 4Q07 Vancocin sales est and raising expenses to reflect increased pipeline and promotional spend; they expect Vancocin sales to pick up in mid-2008 with new IDSA/SHEA guidelines and sales force efforts.
07:26 TKLC TEKELEC: Color on quarter (13.10 )
Baird notes TKLC reported Q3 rev lower than expected, but bookings and gross margins were well above expectations. The North American geography surprised them as it was up 56% QoQ. Guidance was raised slightly for 4Q07 and they are maintaining their ‘08 rev and EPS ests. Q3 results was more encouraging, but they remain concerned regarding sustainability of top-line growth in 2008… Merriman notes TKLC reported mixed 3Q07 results, with rev lower and earnings higher than expected, and a solid improvement in orders. While this pick-up is encouraging, firm notes that annual order guidance remains flat with 2006 and below this year’s unchanged rev guidance of $425-440 mln. Growth remains firm’s issue with the story at present, with run-rate earnings power of $0.60 and little prospect for growth given the transition between aging SS7 based switching products and new IP based signaling products.
07:25 ALU Alcatel-Lucent announces mgmt changes in addition to earnings (9.39 ) -Update-
The co announces Hubert de Pesquidoux has been named CFO, replacing Jean-Pascal Beaufret, who is leaving the co to pursue other opportunities. Hubert de Pesquidoux currently leads the Enterprise Group of Alcatel-Lucent. In addition, the co said as part of its plan to improve profitability it has streamlined its regional structure and CEO Patricia Russo has established a seven-member mgmt committee reporting directly to her to lead the overall operation of the company, creating a more focused and efficient operating model. (See 6:30 comment for additional details)
07:25 PTT VCG Holding: Completes Miami club acquisition and accretive debt-for-equity transaction wit CEO; revising FY07 est down - Merriman (11.17 )
Merriman announces PTT announced the acquisition of Platinum Plus Gentlemen’s Club in Miami for $6.8 mln. Troy Lowrie’s mgnt co agreed to convert $10 mln of promissory notes into 750,000 shares of PTT — which equates to a $13.33 conversion price. Not only does this reduce debt by a third and reduce interest expense by $850,000 annually, but the co essentially sold equity at a 28% premium to the closing price the day before. Firm ests this transaction was accretive by slightly more than $0.01 in EPS. Firm lowers their FY07 rev est to $41.5 mln from $43.0 mln to account for delays in further acquisitions closing.
07:25 FTI FMC Tech: Robust outlook; raising ests - FBR (60.10 )
Friedman Billings notes the 10% sell-off on Tuesday in reaction to Quest Offshore’s reduced subsea tree order forecast and the announcement to spin off the food and airport divisions was overdone and does not reflect a material change in the business as the stock’s negative reaction suggests. Firm views the spin-off as neutral to slightly positive, as they believe the increased subsea concentration after the spin will provide the 3% to 5% multiple expansion required for the transaction to be neutral. Firm raises their tgt to $80 from $77 and their 2008 & 2009 EPS ests to $2.95 and $3.75 from $2.80 and $3.65.
07:24 OMCL Omnicell: Solid fundamentals and compelling valuation - Broadpoint Capital (24.90 )
Broadpoint Capital notes OMCL shares are off 6% since the co reported solid 3Q results. They believe the sell-off was driven by three factors: 1) initial 2008 EPS guidance ($0.90-$0.93) that was modestly below the prior consensus ($0.95), 2) the co’s decision to cease providing quarterly backlog after 4Q07, and 3) a number of valuation-based downgrades.
07:24 ADLR Adolor: Q3 results; anticipate approvable letter in February - RBC (3.59 )
RBC continues to believe that the most likely scenario is that ADLR will receive an Approvable Letter for its NDA for Entereg in POI in Feb 2008. Given the safety signals seen to date, firm believes the FDA will request at least an additional long term safety study. That said, with $147 mln in cash and a low $18 mln enterprise value, ADLR is attractively valued based on 1) its potentially under appreciated Phase II pain program with proof of concept data expected in early 2008 and 2) the option value on its Entereg program.
07:23 ERTS Electronic Arts: Expect modest 2Q08 upside but not type of guide to drive shares - Broadpoint Capital (59.00 )
Broadpoint Capital notes ERTS will report 2Q08 results on Thurs, Nov 1. Firm expects light upside to their ests, which are slightly above the Street consensus expectations. Firm’s non-GAAP rev and EPS ests are $909 mln and $0.22; the Street consensus expectations are $895 mln and $0.20, respectively. Firm thinks the co’s upside in the quarter was limited by the need to “save” some reorders for aggressive Street expectations in 3Q08. As a result, they see 3%-4% upside to Street consensus rev expectations, or $920-$930 mln, with 10%-15% EPS upside, which suggests $0.22-$0.23. Firm expects reiteration, not a positive or negative revision, of FY08 guidance.
07:23 THQI THQ Inc: No surprises likely on preannounced 2Q08 - Broadpoint Capital (25.70 )
Broadpoint Capital reports 2Q08 results on Thurs, Nov 1. Firm expects results in-line with negative preannouncement. Firm’s rev and EPS ests are $229 mln and ($0.03); the Street consensus expectations are $229.6 mln and ($0.02), respectively. Their ests are in line with THQI’s negative preannouncement earlier this month. Firm expects no changes to revised guidance offered during the preannouncement made earlier this month.
07:23 UA Under Armour downgraded to Underperform from Market Perform at Raymond James (63.71 )
07:21 WYN Wyndham Wldwide beats by $0.03, reports revs in-line; guides FY07 EPS in-line, revs in-line; guides FY08 revs in-line (32.62 )
Reports Q3 (Sep) earnings of $0.75 per share, $0.03 better than the Reuters Estimates consensus of $0.72; revenues rose 14.6% year/year to $1.2 bln vs the $1.2 bln consensus. Co issues in-line guidance for FY07, sees EPS of $2.02-2.13 vs. $2.11 consensus; sees FY07 revs of $4.34-4.48 mln vs. $4.4 bln consensus. Co issues in-line guidance for FY08, sees FY08 revs of $4.8-4.9 mln vs. $4.79 bln consensus.
07:19 NIHD NII Holdings downgraded to Underweight from Equal Weight at Morgan Stanley (61.21 )
07:19 PNX The Phoenix Cos beats by $0.04, reports revs in-line (13.39 )
Reports Q3 (Sep) earnings of $0.30 per share, $0.04 better than the Reuters Estimates consensus of $0.26; revenues rose 1.0% year/year to $644 mln vs the $645.8 mln consensus.
07:18 NOVA Novamed reports EPS in-line, misses on revs (5.27 )
Reports Q3 (Sep) earnings of $0.08 per share, in-line with the Reuters Estimates consensus of $0.08; revenues rose 20.6% year/year to $33.4 mln vs the $34.8 mln consensus.
07:18 TRX Tronox misses by $0.22, reports revs in-line (7.72 )
Reports Q3 (Sep) loss of $0.46 per share, $0.22 worse than the Reuters Estimates consensus of ($0.24); revenues fell 4.1% year/year to $363.1 mln vs the $365.9 mln consensus. “As we continue our efforts to improve the bottom line, we also are working to address the top line by increasing prices. Improved pricing is critical, as our industry cannot continue to absorb higher input costs,” said Adams.
07:18 Bank of Japan leaves rates unchanged - AP
AP reports the Bank of Japan slashed its annual economic growth forecast by 0.3 percentage points and held interest rates steady Wednesday as uncertainty in the global economy continued to cloud Japan’s outlook. “The environment overseas has changed, and uncertainty over the global economy persists,” Gov. Toshihiko Fukui told a news conference. “Downside risks to Japan are also increasing.”
07:17 MDT Medtronic upgraded to Equal Weight from Underweight at Morgan Stanley (46.94 )
07:17 CLX Clorox reports Q1 (Sep) results, beats on revs (61.00 )
Reports Q1 (Sep) earnings of $0.76 per share, includes charges, may not be comparable to the Reuters Estimates consensus of $0.62; revenues rose 6.7% year/year to $1.24 bln vs the $1.21 bln consensus. Co issues guidance for FY08, sees EPS of $3.33-3.50, includes charges, may not be comparable to $3.32 consensus; co sees rev growth from existing brands of +3-5%; including benefit from recently acquired bleach business, co sees revs +4-5%.
07:17 BBY Best Buy: DSG rises on speculation Best Buy may make a bid - Bloomberg (48.94 )
Bloomberg reports DSG Intl, Europe’s second-biggest consumer electronics retailer, rose in London trading on speculation about a possible bid from Best Buy.
07:17 VC Visteon beats by $0.18, misses on revs (5.86 )
Reports Q3 (Sep) loss of $0.84 per share, excluding non-recurring items, $0.18 better than the Reuters Estimates consensus of ($1.02); revenues fell 1.3% year/year to $2.55 bln vs the $2.58 bln consensus.
07:16 SHOR Shoretel initiated with a Neutral at Nollenberger (18.32 )
Nollenberger initiates SHOR with a Neutral, based on valuation following Q108 EPS that exceeded consensus and checks that suggest December quarter guidance is achievable.
07:16 COCO Corinthian Colleges upgraded to Buy from Neutral at Merrill (15.78 )
07:15 CKSW ClickSoftware reports Q3 earnings; reaffirms FY07 guidance (6.40 )
Co reports Q3 EPS of $0.03 vs $0.03 single analyst estimate; revs rose 16% YoY to $10.1 mln vs $11.03 mln single analyst estimate. CKSW sees FY07 revs $41-42 mln vs $43.47 mln single analyst estimate. “Our revenues are down slightly from the second quarter, reflecting the specific timing of several multi-million dollar deals. One of these deals, with a major telecommunications company in India, has already closed in the fourth quarter”. “We are very excited about the momentum that continues to build in our business. We are in the final stage of signing a deal with a large utility in North America. We have also been selected as the winner in another large, highly competitive deal, and are currently in final negotiations. Internationally, we have been selected by an important customer in France, and are deploying a pilot solution for one of Japan’s largest utility companies. As a result, not only we are able to confirm our full-year
