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Updated: 31-Jan-08 08:36 ET
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Today’s In Play
08:36 CFC Countrywide: SRM Fund Management discloses 5.19% stake in SC 13D (6.47 )

08:35 IMN Imation upgraded to Buy from Hold at Needham- tgt $29 (24.46 )

08:34 Equity futures sink to pre-market lows, bonds rally, following a worse than expected initial claims number

Dow futures now -118 pts, SPX futures -15 pts… Ten-year yields are at 3.578%, down from 3.733% at yesterday’s close.
08:34 DLB Dolbys Labs: Confluence of positive CE trends; guidance will be critical - Kaufman (41.43 -1.02)

Kaufman notes DLB is scheduled to report today after the close. Firm expects co to report revs of $135.1 mln and non-GAAP EPS of $0.32. The Street is expecting revs of $134.8 mln and non-GAAP EPS of $0.32. On the call they expect to get an update on the current rev mix. Over the past several quarters they have seen a shift in the rev mix. Now with the strong PC cycle, inclusion in a couple of premium versions of Vista, and the continued adoption of digital televisions into homes - Dolby has a much more diversified rev mix. Firm believes that there will continue to be adoption of digital televisions. According the Association of Public Television Stations, there are 21 mln analog over-the-air households. These will need to be done next year as the cut off to digital will occur in Feb 2009.
08:34 SMI Semi Manufacturing announces it would invest $1.58 bln to build an IC R&D center and two IC chip production lines - ChinaTechNews.com (4.11 )

08:34 RRGB Red Robin Gourmet Announces Intent to Acquire Red Robin Franchised Restaurants in Wisconsin & Minnesota for $20.9 mln; expected to be accretive to earnings

…
08:34 RAD Rite Aid reports January same store sales +2.0% (2.72 )

08:34 TSYS TeleComm Sys reports $12 million in first half 2008 for text messaging software orders

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08:33 BCO prelim $1.16 vs $0.74 First Call consensus; revs $882.8 mln vs $819.51 mln First Call consensus

08:33 TIVO TiVo and CBS form research partnership; CBS enlists TiVo research tools

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08:32 S&P futures vs fair value: -21.0. Nasdaq futures vs fair value: -21.0.

Stock futures slide on a pair of economic releases, as one shows higher than expected unemployment claims last week. Just reported, the Dept. of commerce said Dec. personal income rose 0.5% and spending rose 0.2%. Economists expected income to rise 0.4% and spending to rise 0.1%. PCE Core rose 0.2% month over month, in-line with expectations. Separately, the Dept. of Labor said there were 375K initial jobless claims for the week ended Jan. 26 (consensus 319K). In earnings news, MasterCard (MA) topped expectations by $0.17 per share.
08:32 PSDV pSivida announces the filing of its Quarterly Cash Flow Statement for the quarter ended Dec 31, 2007 with the ASX; cash balance at Dec 31, 2007 was US$9.8 mln

…
08:32 BTU sees FY08 $1.00-1.85 may not compare to $2.86 First Call consensus

08:32 TSO says weak crack spreads, higher operating expenses and poor marketing margins negatively impacted earnings at the co’s West Coast refineries

08:32 BTU sees Q1 $0.05-0.25 vs $0.56 First Call consensus

08:31 TSO prelim ($0.29) vs $0.02 First Call consensus; revs $6.53 bln vs $5.88 bln First Call consensus

08:31 WL Wilmington Trust to acquire AST Capital Trust Company; transaction will add ~$27 mln of revenue and be non-dilutive to earnings in 2008 (34.13 )

Co announced that it has signed a definitive agreement to acquire AST Capital Trust Company, a provider of directed trustee, trust administration, and back-office services offered through financial advisors to retirement plans, high-net-worth individuals and families, and institutional investors. Co expects to complete this transaction by this summer and expects this transaction will add ~$27 mln of revenue and be non-dilutive to earnings in 2008. Terms of the transaction were not disclosed.
08:31 BTU prelim $0.71 may not compare to $0.79 First Call consensus; revs $1.21 bln vs $1.25 bln First Call consensus

08:31 MWIV MWI Veterinary Supply misses by $0.03, beats on revs; reaffirms FY08 revs guidance (41.43 )

Reports Q1 (Dec) earnings of $0.38 per share, $0.03 worse than the First Call consensus of $0.41; revenues rose 26.3% year/year to $203.4 mln vs the $185.1 mln consensus. Co reaffirms guidance for FY08, sees FY08 revs of $825 mln vs. $821.85 mln consensus.
08:30 ECONX December Personal Income +0.5% vs +0.4% consensus

08:30 F Ford plans to pump up incentives - Detroit News (6.75 )

Detroit News reports the co will sharply increase incentive spending this year to counter aggressive pricing by competitors and ensure that demand for older vehicles like the Ford F-150 and Mercury Milan remains strong as the automaker prepares to launch newer versions later this year. Senior Ford executives told key dealers about the plan during a meeting in Dearborn earlier this month, according to people who attended the session. Many dealers have chafed at Ford’s push to reduce profit-sapping incentive spending, even at the expense of market share. The exact cost of the new incentives is not clear, but dealers said it would amount to several hundred million dollars.
08:30 ECONX Initial Claims 375K vs 319K consensus, prior revised to 306K from 301K

08:30 ECONX Dec. PCE Deflator YoY 3.5 % vs. 3.5% consensus

08:30 ECONX Dec. PCE Core MoM 0.2 vs. 0.2% consensus

08:30 ECONX December Personal Spending +0.2% vs +0.1% consensus, prior revised to 1.0% from +1.1%

08:30 ECONX Dec. PCE Core YoY 2.2 vs. 2.2% consensus

08:29 SRI Stoneridge reports Q4 EPS of $0.28 vs $0.21 consensus; reports revs up 8.3% yr/yr to $185.5 mln vs $175.3 mln two analyst estimate (8.63 )

Co is not providing Y08 guidance due to the previously announced IPO transaction filing of its JV. The improvement in fourth-quarter results was primarily attributable to new program sales of electronics in Europe and North America and a more favorable sales mix in the Company’s North America electronics business. These improvements were accomplished in spite of the approximate 42% fourth- quarter decline in the medium- and heavy-duty truck market in North America.
08:28 Eskom says 4,400 megawatts out on coal quality, handling, rain - Bloomberg

Bloomberg reports Eskom Holdings, South Africa’s state-owned utility, said wet coal, low-quality coal and handling problems have cut its generation capacity by 4,400 megawatts. The co is currently generating about 28,000 megawatts of power, Andrew Etzinger, a spokesman for the co, said in an interview. While normal demand would be about 31,000 megawatts, industrial users have cut their use by a total of about 1,000 megawatts. The company is currently in so-called stage two, which means there is a shortfall of 1,500 to 3,000 megawatts, according to Eskom’s Web site.
08:28 BHI Baker Hughes downgraded to Outperform from Strong Buy at Raymond James (67.27 ) -Update-

08:28 BONDX Bond Watch: Finding Flight

The market is busy working itself higher again as globally stocks melted down & bonds were bid on the endless, scolling negative headline that is bad banking. MBIA waited until everyone was tucked away in bed before it released its horrible earnings late last night providing another downdraft for equities overnight & setting the stage for the latest flight to quality. The 2-10-yr yield spread steepened to 150.1, snagging itself on last week’s steepest level in over 4 years. Bond prices in the EuroZone were further supported by another weak German retail sales & softer confidence reports. In Japan, bonds were boosted as equities wilted following their US counterparts. Treasuries will get some base consumer data with personal income & spending due along with its component read on PCE . Manufacturing from Chicago also reports & employment costs, but mostly trade will focus on the bond insurer headlines & how equities react should the raters actually ever decide to step up to the plate. Payrolls hits tomorrow so action could dry up into midday as trade positions accordingly. The buck is now near unchanged to slightly offered on the euro & yen but better on most of the major currencies as the market looks to expected jobs improvement over ongoing rate cuts. The euro is working to keep its head above 1.48 after taking out 1.49 overnight. Gold is off with spot now 926.86 (-2.54), hit as the dollar makes a general recovery, crude also offered, now 91.33 (-1.00), on expected economic slowing & ahead of inventories. Data has employment cost index, personal income/spending, initial jobless claims (8:30) & Chicago PMI (9:45). The euro is at 1.4876 & the yen is at 106.1200 while the 10-yr is +13/32 yielding 3.617%.
08:27 DB Deutsche Bank fell in Europe due to rumors of a profit warning - Reuters (114.56 )

08:27 Deutsche Bank upgrades Retail stocks to Neutral from Cautious

Wal Mart (WMT), Kohl’s (KSS), Target (TGT), and Macy’s (M) are the firm’s Top Picks.
08:26 ALY Allis-Chalmers Energy guides Q4 revs above consensus; net income per share to $0.16, may not compare to $0.35 consensus (11.80 )

Co issues upside guidance for Q4, sees revs of $147 mln vs consensus of $145.42; sees Q4 net income per share of $0.16, may not be comparable to conensus of $0.35. ALY says Q4 results were primarily impacted by: 1) Weakness in demand for drill pipe in the Gulf of Mexico due to the hurricane season and the departure of rigs to the international market; 2) Severe flooding in Villahermosa, the largest operating yard in our Mexican tubular services operation; 3) Labor strikes in Argentina for 15 days, because of the October presidential elections, affecting our International Drilling segment. Additionally, the new Argentine government imposed a corporate tax on all employees; 4) Start up costs and low utilization for our coil tubing units.
08:26 COP ConocoPhillips picked for Abu Dhabi Sour Gas project, sources say - DJ (79.13 )

DJ reports the co has been chosen as a partner for the $10 bln project to develop the Shah natural gas field in Abu Dhabi, according to several people familiar with the negotiations. Abu Dhabi National Oil Co., or Adnoc, is expected to make the official announcement on mid-February along with the terms of the deal, these people said. Officials from Adnoc were in Houston this week to finalize the deal with ConocoPhillips, which competed against Occidental Petroleum (OXY) and Royal Dutch Shell (RDS.A). Occidental confirmed Tuesday that the co was out of the running.
08:25 AMZN Amazon.com: BWS Financial has concerns on co’s rev goals (74.21 ) -Update-

BWS Financial says their concern with the guidance is AMZN being able to achieve the rev goal the Company is setting for itself. Firm has adjusted their numbers, with much hesitation, and can only see AMZN achieving a little over $19 bln in sales. The main fear is the impact a slowing economy could have on AMZN in 2008.
08:24 Reminder: Personal Income & Spending, PCE, and Initial Claims data due out in about 6 min at 8:30AM ET

08:23 BPHX Blue Phoenix beats by $0.01, reports revs in-line (18.02 )

Reports Q4 (Dec) earnings of $0.21 per share, excluding non-recurring items, $0.01 better than the First Call consensus of $0.20; revenues rose 51.6% year/year to $24.4 mln vs the $24.3 mln consensus.
08:23 ALY guides Q4 net income per share to $0.16/share, may not be comparable to consensus of $0.35

08:22 UTEK Ultratech misses by $0.03, misses on revs (10.61 )

Reports Q4 (Dec) earnings of $0.09 per share, $0.03 worse than the First Call consensus of $0.12; revenues rose 20.2% year/year to $29.7 mln vs the $33.9 mln consensus. “In 2008 we expect to continue to make progress in improving our current business results through controlling our operating expenses, while driving for growth and investing in the key initiatives that we believe will result in sustained performance.”
08:21 BPHX prelim $0.21 vs $0.20 First Call consensus; revs $22.7 mln vs $24.32 mln First Call consensus

08:21 SNP China Petroleum (Sinopec): Dropping oil prices silver lining for company? - WSJ (107.71 )

WSJ reports the dark clouds gathered over the global economy could have a silver lining for China’s biggest oil refiner, China Petroleum & Chemical, also known as Sinopec… benchmark oil prices may ease further from the record high hit Jan. 3 of just over $100 a barrel — after already having dropped back to about $90. That would be bad news for most global oil cos… but, ironically, it could also mean that Sinopec finally breaks even on refining. The disconnect flows from the peculiar structure of China’s state-dominated oil sector… Sinopec, which focuses almost exclusively on refining, must buy most of the oil it processes from other cos at global prices. After refining that oil, it sells the gasoline and other fuels it produces to Chinese consumers at prices capped by the govt. Those price caps mean Sinopec can’t pass along high oil prices. So the co has been running its refining operations at a loss for years. For 2005 and 2006, Sinopec received govt subsidies of 9.4 bln yuan ($1.3 bln) and five bln yuan, respectively, to partially offset refining losses.
08:21 RL Polo Ralph Lauren downgraded to Underperform from Market Perform at Morgan Keegan- co believes ests are too high and they believe retail comps are under pressure (60.73 )

08:21 ARAY Accuray target cut to $10 at Oppenheimer following earnings (14.98 )

Oppenheimer cuts their ARAY tgt to $10 from $15 following last night’s earnings, which the firm considers the “weakest, most confusing and most concerning” quarterly results since its IPO one year ago. Both revenue ($52 mln vs $58.2 mln consensus) and EPS ($0.04 vs $0.09 consensus) missed consensus, and FY08 guidance was lowered materially (to $210-$230 mln from $250-$270 mln). ARAY now says the credit markets are hurting their customers’ ability to get financing, which has delayed some installations and also eliminated about 7-10 contracts that were in their backlog. The firm checked with ARAY’s competitors last night and no one seems to be having the same issue (VAR had great results just last week).
08:20 FSTR L.B. Foster Company reports Q4 (Dec) results, beats on revs (41.93 )

Reports Q4 (Dec) earnings of $0.81 per share, excluding gain from sale in co’s investment in the DM&E Railroad, may not be comparable to the First Call consensus of $0.40; revenues rose 3.2% year/year to $114 mln vs the $111 mln consensus.
08:19 MLNX Mellanox Tech: Favorable gross margin continues as MLNX maintains its infiniband leadership - Jefferies (14.51 )

Jefferies recommends investors buy shares as Mellanox is well positioned for growth due to: 1) growing demand for faster standardized interconnects in HPCs and EDCs, 2) its near monopolistic position as the leading InfiniBand supplier, 3) its diversifying and expanding customer base, and 4) its multi-standard product road map.
08:19 SCANX Early pre-market gappers

Gapping up: ADBL +22.2%, CNQR +14.3%, SMCI +8.4%, ADS +7.7%, MMA +5.9%, TSCO +5.5%, ABTL +5.2%, ININ +4.9%, EGHT +4.8%, ISSC +4.3%, HRS +3.6%, TSM +3.5%, MEH +3.0%, AMAG +3.0%, KEX +2.9%, ESLR +2.7%, MRO +2.7%, TEVA +2.4%, FTE +1.8%, EBHI +1.3%… Gapping down: ARAY -25.6%, CDNS -21.7%, BLOG -18.4%, OVEN -14.6%, AMZN -12.0%, MRX -11.7%, RNOW -8.4%, CAM -8.3%, MBI -7.6%, UBS -7.5%, DCP -6.6%, BCS -6.6%, ING -5.4%, OIIM -4.6%, NEWP -4.5%, RL -4.5%, PHM -4.2%, VOD -4.2%, NVLS -3.8%, DB -3.8%, HBI -3.5%, AFL -3.2%, HSTX -3.0%, ABK -2.3%, MIPS -2.1%, SBUX -1.5%, BSC -1.4%, MER -1.2%, ATK -1.1%, LLY -1.1%, ICE -1.0%.
08:19 ALY guides Q4 revs above consensus

08:19 CVC Cablevision upgraded to Hold at Kaufman- tgt $23 (23.23 )

Kaufman upgrades CVC to Hold from Sell with a $23 tgt saying shares of CVC have bucked their recent downward trend and appear to be stabilizing in the $22 to $23 range. This may be in part a response to softer-than-expected wire line results from Horizon and recognition that the company is trading below its inherent asset value. The firm does not find CVC a compelling long as they do not think the competitive dynamics (Horizon) favor Cablevision. However, they think the stock has reached a nadir and is no longer a legitimate short call.
08:18 HAE Haemonetics beats by $0.04, beats on revs; reaffirms FY08 EPS guidance (55.25 )

Reports Q3 (Dec) earnings of $0.57 per share, excluding non-recurring items, $0.04 better than the First Call consensus of $0.53; revenues rose 18.6% year/year to $134.6 mln vs the $124.6 mln consensus. Co reaffirms EPS guidance for FY08, sees EPS of $2.07-2.12, excluding non-recurring items, vs. $2.09 consensus; co sees revs up 11-13%, compared to previous guidance of 10-12%.
08:18 SLAB Silicon Labs: Strong through seasonally weaker period with achievable bar set for 2008 - Jefferies (31.85 )

Jefferies believes investors should buy shares of SLAB as it is a rare opportunity to invest in a semiconductor co with a unique combination of 1) strong analog equivalent gross margins of 60-62%, 2) sustainable product cycle-like revenue growth, and 3) diversifying customer base reducing revenue volatility.
08:17 Venezuela will pay Statoil and Total $1.1 billion in compensation - WSJ

WSJ reports Venezuela will pay two European oil cos $1.1 bln in compensation for last year’s nationalization of a multibillion-dollar oil project, less than half the estimated mkt value of their stakes, according to a copy of a compensation agreement reviewed by DJ. Venezuela’s state-run oil giant, Petroleos de Venezuela, agreed to pay TOT and STO for their reduced stakes in the Sincor heavy-oil venture with acombination of crude oil and cash, according to the documents. The agreement offers an inkling of what U.S. oil majors such as XOM and COP might expect as they carry on compensation talks with PDVSA. Unlike the two European concerns, which decided to stay on as minority partners in the projects, the U.S. cos rejected the new terms, left their projects and are seeking compensation. Exxon began arbitration proceedings in September.
08:16 UTEK prelim $0.09 vs $0.12 First Call consensus; revs $29.7 mln vs $33.90 mln First Call consensus

08:16 HAE sees FY08 $2.07-2.12 vs $2.09 First Call consensus; sees revs up 11-13%

08:16 MTSN Mattson downgraded to Average at Caris- tgt $6 (6.01 )

Caris downgrades MTSN to Average from Above Average ad lowers their tgt to $6 from $8.50 saying based on organic growth in the etch business, but they think there are too many holes developing in the story for etch to play a significant role in 2008. Minus the growth from etch, MTSN is likely to face a down year in line with the negative growth for the equipment sector. The firm thinks the longer term prospects for etch are still positive.
08:15 HAE prelim $0.57 vs $0.53 First Call consensus; revs $135 mln vs $124.55 mln First Call consensus

08:15 ARAY Accuray: Despite 2Q Shortfall and Guidance Revision, Opportunity Remains; tgt cut to $17 - Jefferies (14.98 ) -Update-

Jefferies believes ARAY’s fundamentals remain intact and they continue to be encouraged by an expanding backlog, highly favorable reimbursement landscape, top line growth and increased interest in the clinical community for the CyberKnife system. Firm cuts their tgt to $17 from $29.
08:14 WIRES On The Wires

Thermo Fisher Scientific (TMO) announces that its RNA-interference technology has enabled a groundbreaking study at Harvard Medical School which identified human proteins required for growth of the human immunodeficiency virus… Entrust’s (ENTU) network shared folder encryption solution is chosen by China’s PXInfosec… Hughes Network Systems (HUGH) announces that it has signed EMBARQ (EQ) to be a reseller of HughesNet broadband satellite Internet access.
08:13 GHL Greenhill beats by $0.06, reports revs in-line, raises dividend by 18% (66.35 )

Reports Q4 (Dec) earnings of $1.02 per share, $0.06 better than the First Call consensus of $0.96; revenues rose 33.4% year/year to $97.0 mln vs the $96.8 mln consensus. Co says “A major source of our success in growing advisory revenue faster than our major competitors [is that we focus on] corporations rather than private equity or hedge funds. We believe we…benefit from the recent meaningful shift in M&A activity toward strategic rather than private equity deals.” Co also raises qtrly dividend by 18% to $0.45 for a 2.7% annual yield.
08:09 NCX NOVA Chemicals reports Q4 (Dec) results, misses on revs (27.02 )

Reports Q4 (Dec) earnings of $1.51 per share, may not be comparable to the First Call consensus of $1.01; revenues rose 2.3% year/year to $1.8 bln vs the $1.83 bln consensus.
08:09 ALL Allstate downgraded to Hold from Buy at Sandler O’Neill (48.49 )

08:08 ITG Investment Tech beats by $0.06, beats on revs (45.18 )

Reports Q4 (Dec) earnings of $0.68 per share, $0.06 better than the First Call consensus of $0.62; revenues rose 28.4% year/year to $196.6 mln vs the $182.7 mln consensus.
08:08 NEWP Newport reports record orders, but issues in laser division and pricing pressures suppress margins - Brean Murray (11.00 )

Brean Murray notes NEWP reported record orders in the Dec quarter and expects its March book-to-bill to exceed 1. The sales outlook for 2008 is within expectations, but margins again appear to be below expectations, resulting in a 1Q08 EPS forecast range well below expectations. Warranty and under-absorption of factory overhead have recently limited the results of the Laser division. Firm also believes the firm has experienced increased pricing pressures over the last year, which have also depressed margins. They believe NEWP is taking a number of steps to effectively cope with these issues. While we are cautious on their 1H08 outlook, firm believes NEWP’s low share price and new products make it attractive to long-term investors.
08:08 CSR China Security and Surveillance issues press release related to CEO’s loan (15.85 ) -Update-

Co announced that Whitehorse Technology Limited, a wholly owned company by Mr. Tu Guo Shen, Chief Executive Officer issued and sold U.S. $50,000,000 in aggregate principal amount of Exchangeable Senior Notes due 2012 to a third party investor not affiliated with CSR. In connection with this transaction, Whitehorse and Mr. Tu pledged 8,750,000 shares of CSR’s common stock that are directly and indirectly beneficially owned by Whitehorse and Mr. Tu, respectively, to secure the Notes. Whitehorse may only use the Note proceeds to (i) buy CSR common stock from CSR in a private transaction, (ii) make a loan to CSR, the proceeds of which may be used by CSR to fund certain acquisitions, or (iii) buy stock of CSR in the open market.
08:07 KOG Kodiak Oil & Gas announces definitive Vermillion Basin exploration agreement with DVN (1.75 )

Co announces that it has entered into a definitive Exploration Agreement with Oklahoma City-based Devon Energy Production Company (DVN). As part of the agreement, Kodiak and Devon have set forth terms and conditions that create an Area of Mutual Interest for the exploration, leasing, and development of certain of Kodiak’s Vermillion Basin, Wyoming oil and gas properties.
08:07 SAFM Sanderson Farms initiated with a Market Perform at BMO Capital (33.61 )

08:07 SWM prelim $0.16, ex items, vs $0.20 First Call consensus; revs $188.5 mln vs $182.50 mln First Call consensus

08:07 HHS Harte-Hanks beats by $0.02, reports revs in-line (16.02 )

Reports Q4 (Dec) earnings of $0.39 per share, $0.02 better than the First Call consensus of $0.37; revenues fell 3.3% year/year to $303 mln vs the $304.4 mln consensus.
08:07 LDR Landauer, Inc. beats by $0.02, beats on revs (47.35 )

Reports Q1 (Dec) earnings of $0.57 per share, $0.02 better than the single estimate of $0.55; revenues rose 8.1% year/year to $21.8 mln vs the $21.1 mln single estimate. Landauer’s business plan for fiscal 2008 currently anticipates aggregate revenue growth for the year to be in the range of 4 - 5 percent. The company anticipates a net income increase in the range of 6 - 8 percent excluding the impact of the 2007 asset impairment and accelerated depreciation charges.
08:06 SEIC SEI Investments reports EPS in-line, revs in-line (28.50 )

Reports Q4 (Dec) earnings of $0.35 per share, excluding non-recurring items, in-line with the First Call consensus of $0.35; revenues rose 12.0% year/year to $353.4 mln vs the $350 mln consensus.
08:06 GHL prelim $1.02 vs $0.96 First Call consensus; revs $97.0 mln vs $96.8 mln First Call consensus

08:06 SGP Schering-Plough: FDA grants priority review for SGP’s Peginterferon Alfa-2b for the Adjuvant Treatment of patients with Stage III Melanoma (19.36 )

The co announces that the FDA has accepted the Peg-IFN (peginterferon alfa-2b) supplemental Biologics License Application (sBLA) for review and has granted Priority Review status for the adjuvant treatment of patients with Stage III melanoma. Schering-Plough submitted its application to the agency in the fall of 2007.
08:06 MPW Medical Properties Trust misses by $0.01, beats on revs; guides FY08 FFO in-line (12.04 )

Reports Q4 (Dec) funds from operations of $0.30 per share, $0.01 worse than the First Call consensus of $0.31; revenues rose 76.1% year/year to $28 mln vs the $26.8 mln consensus. Co issues in-line guidance for FY08, sees FFO of approx $1.21 vs. $1.24 consensus.
08:05 EMKR Emcore enters into a multi-year agreement to supply solar concentrator photovoltaic systems for utility scale power projects in the Southwestern US (12.33 )

Co announces that it has signed a memorandum of understanding for the supply of between 200 MW and 700 MW of solar power systems that are scheduled for deployment in utility scale solar power projects under development in the southwestern region of the United States. EMKR will supply and install turnkey solar power systems utilizing EMKR’s concentrating photovoltaic systems developed at its Albuquerque, NM facility. This agreement is not expected to contribute revenues until 2009 and is dependant on the renewal of the federal investment tax credit extending into 2009 and beyond.
08:05 SEIC prelim $0.35 vs $0.35 First Call consensus; revs $353.4 mln vs $350.00 mln First Call consensus

08:04 ININ Int. Intelligence: Growing pains par for the course - Susquehanna (13.59 )

08:04 MA MasterCard beats by $0.17, beats on revs (189.00 )

Reports Q4 (Dec) earnings of $0.89 per share, excluding non-recurring items, $0.17 better than the First Call consensus of $0.72; revenues rose 27.8% year/year to $1.07 bln vs the $0.98 bln consensus. Co reports Q4 gross dollar volume up 15.2% vs 12.8% prior, purchase volume up 16.1% vs 14.1% prior.
08:04 LDR prelim $0.57 vs $0.55 single analyst est; revs $21.8 mln vs $21.10 mln single analyst est

08:04 CXM Cardium Therapeutics announces $5.3 mln registered direct offering (2.38 )

08:04 ABK AMBAC Fincl: CNBC commentator says Wilbur Ross is “clearly having second thoughts” about diving into ABK (10.85 )

08:04 RSTI Rofin-Sinar Technologies beats by $0.07, beats on revs (36.13 )

Reports Q1 (Dec) earnings of $0.53 per share, $0.07 better than the First Call consensus of $0.46; revenues rose 20.5% year/year to $134.7 mln vs the $128.2 mln consensus.
08:03 MPW prelim funds from operations of $0.30 vs $0.31 First Call consensus; revs $28.0 mln vs $26.84 mln First Call consensus

08:03 CNQR Concur Tech: color on quarter (28.27 )

Montgomery notes CNQR’s 1Q08 key metrics including rev, operating margins, non-GAAP earnings, and free cash flow were better than they anticipated. Mgmt also reported record transaction volumes and raised FY08 rev, non-GAAP earnings before tax, and cash flow guidance. Firm believes CNQR will continue to thrive in a slower economy, as its solutions are procured through operating budgets, deploy relatively quickly, and generate a fast ROI… Deutsche notes CNQR’s revs of $49.4 mln and fully-taxed adjusted EPS of $0.11 were well above Street consensus ests of $46 mln and $0.08. Upside again was almost entirely driven by an acceleration in org. subscription growth (up > 45% y/y vs. 36% in 4Q). Firm believes these results illustrate strengthening momentum from its integrated offering with a reasonably healthy demand environment for cost-saving solutions. We see these factors alongside the SaaS model and scale benefits supporting strong stock performance over the next year.
08:02 DWCH Datawatch reports Q1 EPS of $0.04 vs $0.10 single estimate; reports revs up 5% yr/yr to $6.1 mln vs $6.6 mln single estimate (7.20 )

08:02 FTI FMC Tech to supply subsea systems for Gumusut-Kakap project offshore Malaysia (49.20 )

Co announces that it has been awarded a contract by Sabah Shell Petroleum for the supply of deepwater subsea systems for the Gumusut-Kakap project. The Gumusut-Kakap project is located offshore East Malaysia. The scope of supply for phase one of the project includes 15 subsea trees, five manifolds, subsea drilling systems, control systems, flowline connections and related subsea equipment and life-of-field support. Deliveries are expected to commence in late 2008.
08:02 S&P futures vs fair value: -10.4. Nasdaq futures vs fair value: -12.5.

Futures suggest the stock market will face some selling pressure at the open as worries over bond insurers continue to weigh on sentiment. Bond insurer MBIA (MBI) reported a larger than expected loss. Dow Component Procter & Gamble (PG) topped its earnings expectations, but guided third quarter earnings below analysts’ expectations. Economic reports personal income and the weekly initial jobless claims will both be released at 8:30 ET. Chicago PMI is set for release at 9:45.
08:02 ITG prelim $0.68 vs $0.62 First Call consensus; revs $196.6 mln vs $182.70 mln First Call consensus

08:02 NCX prelim $1.51 vs $1.01 First Call consensus; revs $1.8 bln vs $1.83 bln First Call consensus

08:01 RSTI prelim $0.53 vs $0.46 First Call consensus; revs $134.7 mln vs $128.22 mln First Call consensus

08:01 XRX Xerox’s Global Imaging acquires Better Quality business systems, terms not disclosed (15.50 )

08:01 ADS Alliance Data: Upgrade details (42.70 ) -Update-

As mentioned at 7:12 Bear Stearns upgraded ADS to Outperform from Peer Perform following earnings. The firm says given ADS’s superior longterm operating and financial track record, solid 4Q07 results, upbeat outlook for 08, comforting clarification regarding funding/liquidity, unique market-leading operations, and current depressed valuation, they believe the upside is substantial. THe firm says the market seems to be ascribing a credit multiple to the entire co (the estimated 08 earnings mix is 51% credit, 38% Marketing and 11% Transaction). The firm says concerns over ADS’s credit business are overdone. Based on 4Q results and current delinquency trends, consumer credit remains intact. And ironically, given the recent decline in rates, the firm says ADS’s funding costs may actually improve in 08.
08:00 MA prelim $0.89, ex gains vs $0.72 First Call consensus; revs $1.07 bln vs $984.78 mln First Call consensus

08:00 HOKU HOKU Scientific announces 3-year extension on SANYO electric polysilicon supply contract; SANYO to pay Hoku up to ~$530 mln over 10 years (9.07 )

Co announced that it has amended its polysilicon supply contract with SANYO Electric to increase the term of the contract from seven to ten years. Total amounts that may be payable to Hoku Materials under the contract have increased from up to approximately $371 mln for the seven year contract, to up to approximately $530 mln for the amended ten year contract. Hoku Materials and SANYO also agreed to extend to May 31, 2008 the date on which either party may terminate the supply agreement if Hoku Materials is unable to complete the financing for its polysilicon production plant. The amendment also extends the dates when SANYO may terminate the agreement if Hoku Materials is unable to complete the various polysilicon production, testing, process implementation, and shipment milestones. In addition, under the amended contract, Hoku Materials will start shipments to SANYO by the beginning of 2010; however, the agreement provides that Hoku Materials may ship product to SANYO in 2009.
08:00 HHS prelim $0.39 vs $0.37 First Call consensus; revs $303.0 mln vs $304.35 mln First Call consensus

08:00 CFC Countrywide: Color on quarter (6.47 ) -Update-

Stifel notes CFC’s miss was again driven by significant credit deterioration as servicing delinquencies increased 152bp q/q to 8.64% (over 33% in subprime) and bank NPAs jumped 130 bps to 3.0% (5.7% in Option ARMs). This led to another huge loss provision ($907 mln vs. $934 mln last qtr and $350 mln in all of 2005 and 2006 combined). Credit deterioration also drove another significant residual writedown, $831 mln vs. $717 mln last qtr. Interestingly, CFC only had $907 mln of residuals remaining after 3Q07 but still has $736 mln at year-end. The larger-than expected writedown this qtr relates to home equity line of credit securitizations where customers are drawing down on their available lines… Lehman believes CFC’s miss was attributable to higher than expected credit costs. CFC had indicated that 3Q07 provisions were more of a one-time surge to build reserves than a new run-rate; however, 4Q07 provisions and residual impairments came in at similar levels as the pace of credit deterioration accelerated requiring additional steep reserve building. Firm now expects CFC will break even in `08 (down from their previous est of $1.40) and are introducing our `09 EPS est of $1.30… Wachovia says the primary weakness in the quarter was related to credit. Higher than expected securitization residual write-downs, provisions for credit losses in the bank and unrealized losses on loans available for sale (run through AOCI) all contributed to weakness in earnings and book value during the quarter.
07:59 CSR China Security and Surveillance: Tu Guo Shen discloses 32.6% stake; 8.75 mln shares pledged to secure notes (15.85 )

The filing states “On January 11, 2008, in connection with the issuance and sale of $50,000,000 in aggregate principal amount of notes to a certain purchaser (announced on 12/29), Whitehorse and Mr. Tu (CSR’s Chief Executive Officer, Chairman and Director) entered into a pledge agreement, pursuant to which they pledged a total of 8,750,000 shares of the Issuer directly and indirectly beneficially owned by Whitehorse and Mr. Tu, respectively. The purpose of the issuance and sale of the notes was to provide capital to Whitehorse that may be later used to acquire securities of the Issuer in the secondary market, to acquire equity securities from the Issuer to permit a future merger transaction or to fund a loan to the Issuer.”
07:58 CFC Countrywide confirms Florida subpoena - WSJ (6.47 ) -Update-

WSJ reports the co confirmed yesterday that it received a subpoena from the Florida attorney general seeking information on its business practices. The subpoena adds to the problems for the lender, which has drawn the ire of bankruptcy judges, borrowers and consumer groups for months. Florida Attorney General Bill McCollum is seeking information on how Countrywide handles borrower payments as well as materials related to sales practices and standards for making loans. Mr. McCollum is also investigating whether Countrywide has charged excessive fees to borrowers in the foreclosure process. In an interview, he noted that even bankruptcy judges have flagged these fees and expressed concern that Countrywide “may be sticking people at the end of the process.”
07:56 NVLS Novellus: Color on Quarter (23.41 )

Lehman says one highlight of the call was management`s focus on cost containment and opex reduction. Although mgmt is not giving up on C.M.P., they did suggest that they will be consolidating some of their product facilities and real estate. The outlook for a weak capex environment coupled with mgmt`s weak guidance for the March qtr will likely lead to further cuts to street estimates and firm has lowered their below-consensus CY08 revenue estimate to $1.35. But considering new cost cutting iniatives outlined by mgmt, firm is maintaining their below consensus CY08 EPS estimate of $1.35 and views shares as nearing a bottom… Think Equity believes logic (especially Intel) remains the sole bright spot in an otherwise deteriorating environment. The foundries continue to grapple with pricing erosion compounded by higher raw material prices (such as soaring polysilicon) and lower factory utilizations. The memory suppliers have full utilizations but weak pricing. Firm believes the stock price close to multi-year lows appears to be bracing for a serious downturn. Firm says even if bookings potentially dip to as low as $250 mln, their pricing methodology predicts no lower than $22, close to the after hours pricing yesterday… Citigroup believes NVLS is a call on whether mgmt is willing/able to focus product line, cut expenses, and maximize earnings leverage. On that front, firm’s interest is piqued as it’s finally saying the right things and - on that alone - this very well could be a great time to call a bottom in stock. However, because firm thinks CQ2’s the fundamental bottom and firm still can’t fully identify the path to new expense tgts, they remain on sidelines for now. So, while downside likely limited, firm needs a more credible path to these tgts to see stock generating big alpha in 2H foundries turn.
07:56 ADBL Audible downgraded to Neutral at Merriman (9.33 ) -Update-

Merriman downgrades ADBL to Neutral from Buy noting Amazon.com (AMZN) announced the acquisition of ADBL for $11.50 per share. The firm has long suspected that Apple (AAPL) would be the party most interested in acquiring Audible considering the close ties between the two companies. The firm says they would not be surprised to see Apple make a bid for Audible to preserve its leadership in the online audio content distribution. There are no alternatives to Audible in the marketplace with any significant scale.
07:53 MTU Mitsubishi Financial 9-month profit falls 54%, keeps forecast - Reuters (9.72 )

Reuters reports the co, Japan’s largest bank, booked a 54.4% drop in April-December profit, hit by subprime investments and losses at its credit card unit, but kept its forecast. Group net profit for the first nine months of the business year fell to 314.7 bln yen ($3 bln) from 690.6 bln yen a year earlier. The bank stuck to its already lowered forecast for a 600 bln yen net profit for the year to March. MUFG cut its full-year forecast in October by 25%. That compares to a mkt consensus of 605.4 bln yen.
07:52 LSTR Landstar System beats by $0.03, beats on revs; guides Q1 EPS in-line; guides FY08 EPS in-line (47.60 )

Reports Q4 (Dec) earnings of $0.54 per share, $0.03 better than the First Call consensus of $0.51; revenues rose 5.2% year/year to $643 mln vs the $623.4 mln consensus. Co issues in-line guidance for Q1, sees EPS of $0.41-0.46 vs. $0.44 consensus; co sees revs to grow in the mid-to-high single digits. Co issues in-line guidance for FY08, sees EPS of $2.00-2.25 vs. $2.18 consensus; co sees revs to grow in the high single to low double digits.
07:52 SBUX Starbucks: Color on quarter (19.22 ) -Update-

Friedman Billings says they are encouraged by plans to cut capital expenditures, decrease U.S. growth, close underperforming stores, and increase international growth. However, they believe the call was disappointing, with less visibility provided on these actions than hoped. 1Q08 results were mostly disappointing but in line with firm’s expectations. While they expect near-term results to be choppy and this realignment to take time, Street expectations remain low, and they believe mgmt is taking the appropriate steps to add shareholder value in the longer term by focusing on returns and in-store operations… Citigroup cut their SBUX tgt to $23 from $33, and says their analysis suggests that investors can purchase all of the future growth at Starbucks for less than $1. The stock seems to be implying that Starbucks will grow EBIT at a rate equal to long run inflation (only ~3%) over the next decade. think this is too conservative… Robert Baird notes Q1 EPS met est/guidance, with below-plan U.S. results offset by strength in other segments plus G&A savings; F2008 EPS guidance reduced due to sluggish domestic trends and costs for initiatives; encouraged by plans to slow near-term growth, but expect domestic turnaround efforts to take time to gain traction; lowering estimates; firm is expecting sentiment to remain cautious amid weaker trends and limited visibility related to longer-term growth plans… Lehman says the U.S. still drives the business, challenged by both macro-pressure and competition, while Int`l remains strong. SBUX appropriately to slow U.S. growth and accelerate Int`l. Specific to F1Q, EPS met guidance despite U.S. weakness on effective cost control. Expect actions to improve LT profitability though patience required.
07:51 LSTR sees FY08 $2.00-2.25 vs $2.18 First Call consensus

07:51 LSTR sees Q1 $0.41-0.46 vs $0.44 First Call consensus

07:50 LSTR prelim $0.54 vs $0.51 First Call consensus; revs $643 mln vs $623.44 mln First Call consensus

07:50 BMY Bristol-Myers misses by $0.01, beats on revs; guides FY08 EPS below consensus (23.26 )

Reports Q4 (Dec) earnings of $0.33 per share, excluding non-recurring items, $0.01 worse than the First Call consensus of $0.34; revenues rose 32.6% year/year to $5.38 bln vs the $5.24 bln consensus. Co issues downside guidance for FY08, sees EPS of $1.60-1.70 vs. $1.71 consensus, down from prior guidance of $1.65-1.75, primarily reflecting the impact of the Medical Imaging divestiture. Co reaffirms guidance that it expects non-GAAP EPS to grow at a minimum of 15% compounded annual growth rate, from the 2007 base, for the next three years.
07:50 LLL L-3 Comms beats by $0.02, beats on revs; guides FY08 EPS in-line, revs in-line (107.85 )

Reports Q4 (Dec) earnings of $1.63 per share, $0.02 better than the First Call consensus of $1.61; revenues rose 12.3% year/year to $3.8 bln vs the $3.63 bln consensus. Co issues in-line guidance for FY08, sees EPS of $6.48-$6.62 vs. $6.51 consensus; sees FY08 revs of $14.2-$14.4 bln vs. $14.2 bln consensus.
07:50 RRST RRSAT Global beats by $0.01, beats on revs (15.09 )

Reports Q4 (Dec) earnings of $0.18 per share, $0.01 better than the First Call consensus of $0.17; revenues rose 35.8% year/year to $16.3 mln vs the $15.4 mln consensus.
07:49 BA Boeing tgt cut to $78 at Citigroup (82.86 ) -Update-

Citigroup cuts their BA tgt to $78 from $87 following yesterday’s in-line Q4 EPS. The firm says further 787 delays are likely, and they continue to disbelieve the extended cycle thesis and look for a 2009 commercial aerospace peak.
07:48 BEBE bebe stores downgraded to Market Perform at Morgan Keegan (11.21 )

Morgan Keegan downgrades BEBE to Market Perform from Outperform, based on a lack of store growth that is becoming extremely alarming in the absence of positive comps.
07:47 LLL sees FY08 $6.48-6.62 vs $6.51 First Call consensus; sees revs $14.2-14.4 bln vs $14.20 bln First Call consensus

07:46 MEG Media General reports Q4 (Dec) results, misses on revs (19.57 )

Reports Q4 (Dec) earnings of $0.43 per share, may not be comparable to the First Call consensus of $0.70; revenues fell 15.8% year/year to $243.8 mln vs the $261.3 mln consensus.
07:46 LLL prelim $1.63 vs $1.61 First Call consensus; revs $3.8 bln vs $3.63 bln First Call consensus

07:46 GR Goodrich beats by $0.04, misses on revs; guides FY08 EPS below consensus, revs in-line (62.84 )

Reports Q4 (Dec) earnings of $0.95 per share, $0.04 better than the First Call consensus of $0.91; revenues rose 11.6% year/year to $1.67 bln vs the $1.69 bln consensus. GR has not completed discussions with Boeing regarding the impact of the latest delay in the 787 Dreamliner development and delivery schedules, the company does not believe it will have a material impact on earnings or cash flow in 2008 or 2009. Co issues mixed guidance for FY08, sees EPS of $4.15-4.30 vs. $4.33 consensus; sees FY08 revs of $7.1-7.2 bln vs. $7.17 bln consensus.
07:46 SBUX Starbucks downgraded to Accumulate at ThinkEquity- tgt cut to $20 (19.22 )

ThinkEquity downgrades SBUX to Accumulate from Buy and cuts their tgt to $20 from $30 following earnings. The firm says Starbucks reported results for Q1 FY08, announcing the first quarter of negative U.S. comparable store sales in the co’s history. Returned CEO Howard Schultz laid out plans for the company’s turnaround, including a slowing of growth in order to refocus on improving the customer experience. The firm says although they believe Schultz will be able to improve the situation, they think that given slower growth and a troubled U.S. business, the stock no longer warrants such a high multiple and that the stock will hover around the $20 range for the next 12 months.
07:46 HERO Hercules Offshore beats by $0.04, misses on revs (22.52 )

Reports Q4 (Dec) earnings of $0.35 per share, $0.04 better than the First Call consensus of $0.31; revenues rose 129.3% year/year to $262.9 mln vs the $277.4 mln consensus. Co says it grew dramatically in 2007, tripling the size of its offshore drilling fleet as a result of its acquisition of Todco.
07:45 CELG Celgene reports EPS in-line, beats on revs; guides FY08 EPS in-line (53.96 )

Reports Q4 (Dec) earnings of $0.31 per share, in-line with the First Call consensus of $0.31; revenues were unchanged from the year-ago period at $414.6 mln. Co issues in-line guidance for FY08, sees EPS of $1.50-1.55 vs. $1.54 consensus; sees FY08 revs of $1.8 bln, excluding Pharmion. Celgene reports 4Q07 Revlimid rev of $247.4 mln vs. $239 mln Street Expectation; 4Q07 Thalomid rev of $112.6 mln vs. $110 mln Street Expectation (53.96 )
07:45 AMZN Amazon.com: Color on quarter (74.21 )

Soleil says consistent with their preview, AMZN reported stellar 4Q rev performance that was tempered by margin pressures leading to what they consider to be an attractive “buy-on-the-news” opportunity. The co met consensus EPS ests on higher-than-expected rev and offered guidance that bookended FY08 forecasts. After-market trading pressured AMZN shares unjustly, in firm’s opinion, especially given the co’s long-term growth and margin opportunities… Citi notes AMZN traded off following earnings due to 1) ‘Cause operating margin results (5.8% vs. 6.2% expectation) and outlook (5.9% ‘08 midpoint vs. 6.6% expectation) disappointed — raising - about AMZN’s l-t margins; 2) ‘Cause @$74, AMZN was still trading at an intrinsically high 45X ‘08 Street estimates; and 3) ‘Cause AMZN’s ‘08 operating income guidance was below the Street.
07:44 ICE IntercontinentalExchange beats by $0.02, beats on revs (138.36 )

Reports Q4 (Dec) earnings of $0.94 per share, which excludes $0.04/share due to certain non-cash compensation expense related to ICE’s performance-based equity program and recorded under an accelerated method of expense recognition, $0.02 better than the First Call consensus of $0.92; revenues rose 67.3% year/year to $159.3 mln vs the $154.4 mln consensus.
07:42 LANC Lancaster Colony beats by $0.06, beats on revs (34.02 )

Reports Q2 (Dec) earnings of $0.67 per share, excluding multiple charges & gains, $0.06 better than the First Call consensus of $0.61; revenues rose 4.8% year/year to $306 mln vs the $299.6 mln consensus.
07:41 BIG Big Lots upgraded to Market Perform from Underperform at Wachovia (16.10 )

07:40 PCZ Petro-Canada reports Q4 (47.32 )

Co reports Q4 EPS of $1.06, excluding non-recurring itmes, vs $0.98 in yr ago period. “We successfully followed through on our two business priorities; exceeding our upstream production targets and not only advancing five major projects, but adding two more. In 2008, we will bring on the Edmonton refinery conversion project - a significant contributor to future cash flows. We will also advance our six other growth projects, making final investment decisions on Fort Hills, the Syria Ebla gas and Montreal coker projects.”
07:40 AMSC Am Superconductor reports Q3 (Dec) results, beats on revs; guides FY08 EPS above consensus, revs above consensus (19.46 )

Reports Q3 (Dec) loss of $0.18 per share, includes approx $2.9 mln in restructuring and impairment charges, may not be comparable to the First Call consensus of ($0.20). Co issues upside guidance for FY08, sees EPS of ($0.69)-($0.74), compared to previous guidance of ($0.70)-($0.81), vs. ($0.77) consensus; sees FY08 revs of $105-110 mln, compared to previous guidance of $100-110 mln, vs. $102.79 mln consensus. Co reaffirms Y09 guidance, sees revs to exceed $150 mln.
07:40 EGHT 8×8: Back on track; mgmt expects strong tailwinds evident in 3Q08 results to continue - Merriman (1.24 )

Merriman says that in FY07, EGHT began focusing on the SOHO VoIP market. Although the shift resulted in decelerated rev growth, they believe the co has formed a solid rev base from which it can profitably grow. As of F4Q08, the co’s Virtual Office product is expected to account for >50% of rev, which they believe solidifies the transformation. Going forward, firm expects the co to further expand its SOHO product set and further improve its profitability.
07:39 UBS UBS AG downgraded to Underweight from Equal Weight at Morgan Stanley (42.26 )

07:39 ESLR Evergreen Solar: Expansion start-up costs expected to hurt FY07 bottom line - Merriman (11.98 )

Merriman believes ESLR’s proprietary and patented solar power technologies, based on the co’s String RibbonTM technology, offer significant design, cost and manufacturing advantages over competing solar power technologies. They believe ESLR is positioned to leverage this cost advantage as the co executes on its second and third phases of manufacturing capacity expansion. Firm believes ESLR shares appear fully valued at the current level given the dilutive effect of its polysilicon supply contracts.
07:38 SSP EW Scripps beats by $0.05, reports revs in-line; guides Q1 EPS below consensus (41.00 )

Reports Q4 (Dec) earnings of $0.75 per share, $0.05 better than the First Call consensus of $0.70; revenues fell 0.6% year/year to $679.2 mln vs the $682.6 mln consensus. Co issues downside guidance for Q1, sees EPS of $0.38-$0.42 vs. $0.44 consensus. Based on advance advertising sales, the company currently anticipates 1Q08 total revenue for Scripps Networks will be up 10 to 12% year-over-year. Scripps Interactive Media, which includes Shopzilla and uSwitch, is expected to generate segment profit of about $13 million in Q1, compared with a small loss in 1Q07.
07:38 GR has not completed discussions with Boeing regarding the impact of the latest delay in the 787 Dreamliner development and delivery schedules, the company does not believe it will have a material impact on earnings or cash flow in 2008 or 2009.

07:38 FLO Flowers Foods beats by $0.02, beats on revs; guides FY08 EPS in-line, revs in-line (21.89 )

Reports Q4 (Dec) earnings of $0.23 per share, $0.02 better than the First Call consensus of $0.21; revenues rose 8.1% year/year to $473.7 mln vs the $468.8 mln consensus. Co issues in-line guidance for FY08, sees EPS of $1.07-1.17 vs. $1.12 consensus; sees FY08 revs of $2.21-2.258 vs. $2.2 bln consensus.
07:38 BHI Baker Hughes: Disappointing international growth guidance - FBR (67.27 ) -Update-

Friedman Billings notes BHI reported 4Q07 EPS of $1.26, below consensus of $1.28. Mgmt guided international growth in the low to mid teens for 2008, roughly 7% below their previous assumption and at the low end of its peer group. Firm lowers their 2008 EPS est to 7% below the previous consensus of $5.66. This decreases firm’s DCF-derived price target by $7. A 50 basis point increase in the cost of equity due to elevated risk premiums in owning cyclical equities in the current macro environment decreases their tgt $5, and a higher reinvestment rate to build out international infrastructure sheds another $2 off, bringing it down to $82 from $96.
07:38 TWC Time Warner Cable initiated with a Neutral at Cowen (24.70 )

07:37 HWAY Healthways: MHS future is clouded, but core business continues to deliver - Broadpoint Capital (55.85 )

Broadpoint Capital notes HWAY shares took a beating on Wed following an announcement from the CMS that Phase I of MHS pilots would be terminated later this year. Firm says that while the collective inability of the five remaining MHS vendors to achieve budget neutrality certainly casts doubt on the prospects for a Phase II expansion, firm believes this says nothing about the opportunities for DM within the commercial sector (both domestically and internationally). They believe the recent spike in DM M&A activity (four transactions announced since October) speaks to the industry’s strong long-term growth prospects.
07:37 GR sees FY08 $4.15-4.30 vs $4.33 First Call consensus; sees revs $7.1-7.2 bln vs $7.17 bln First Call consensus

07:37 NAL New Alliance Bcshrs: Excellent credit quality - FBR (11.60 )

Friedman Billings regards NAL’s portfolio as a safety zone for credit quality, based on extremely conservative LTV ratios. Firm believes that NAL is a willing seller, but the timing of a sale has become increasingly uncertain due to major industry credit-quality issues: buyers may not have a handle on the losses embedded in their own portfolios and, therefore, they may be unwilling to compound anything by buying another co. As such, they assign a low probability to a NAL sale in 2008, although high credit quality should allow NAL to advertise, “What you see is what you get!” Firm increases their FY08 EPS est to $0.55 from $0.53 and established their FY09 est at $0.65. Firm cuts tgt to $14 from $16.
07:37 HOLX Hologic reports Q1 (Dec) results, beats on revs (61.80 )

Reports Q1 (Dec) loss of $3.31 per share, including charges, not comparable to the First Call consensus of $0.48; revenues rose 127.6% year/year to $371.4 mln vs the $363.4 mln consensus. Included in the Q1 results were charges relating to the Cytyc merger of $370.0 mln attributable to acquired in-process research and development costs, $41.5 mln attributable to the increase in cost of revenues relating to the write-up of inventory to fair market value, and $20.4 million attributable to the amortization of intangibles. The co’s non-GAAP adjusted net income for the first quarter of fiscal 2008 increased 213% to $61.4 mln compared to the co’s non-GAAP adjusted net income of $19.7 mln in the first quarter of fiscal 2007.
07:36 RNOW Rightnow Tech: Good 4Q07 but poor profitability guidance - FBR (12.79 )

Friedman Billings says RNOW reported good 4Q07 results with in-line revs, EPS, and upside to free cash flow. However, mgmt guided for a significantly higher loss in 2008 as it intends to ramp up headcount in 1H08. While it appears RNOW has passed the worst of its transition to an all-subscription-based model, it seems that the co underinvested in the past year as headcount grew by just 4%. Firm believes execution has been lacking, and they are underwhelmed by the co’s inability to deliver profitability or drive cash flow growth.
07:36 GRMN Garmin: View yesterday’s nuvifone announcement positively- Soleil (70.34 )

Soleil notes yesterday GRMN announced “nuvifone”, an integrated mobile phone navigation device with an iPhone-like form-factor planned for launch in Q3. The firm views the announcement positively, as they believe this marks Garmin’s first meaningful entry into the mobile market, which they believe is important for two reasons: mobile is the obvious next opportunity for growth for navigation and location-based applications; and it is important for Garmin to carve out a position in the mobile market to mitigate the long-term risk of P.N.D cannibalization from mobile phone solutions. Firm also cuts their tgt to $90 from $130, saying this is unrelated to yesterday’s announcement, and is a move to better reflect the reality of the current market environment.
07:36 GR prelim $0.95 vs $0.91 First Call consensus; revs $1.67 bln vs $1.69 bln First Call consensus

07:36 TKR Timken misses by $0.04, beats on revs; guides Q1 and FY08 EPS in-line (28.87 )

Reports Q4 (Dec) earnings of $0.51 per share, excluding non-recurring items, $0.04 worse than the First Call consensus of $0.55; revenues rose 8.9% year/year to $1.34 bln vs the $1.28 bln consensus. Co issues in-line guidance for Q1, sees EPS of $0.70-0.80, excluding non-recurring items, vs. $0.73 consensus. Co issues in-line guidance for FY08, sees EPS of $2.75-2.95, excluding non-recurring items, vs. $2.86 consensus.
07:36 MBHI Midwest Banc: Headwinds limit upside near-term - FBR (11.04 )

Friedman Billings cuts their tgt on MBHI to $12 from $15, as well as their Y08 EPS estimate by $0.23 to $0.72, and establishing their FY09 EPS est of $0.85. Firm continues to believe share upside remains limited as the operating environment remains challenging due to deteriorating credit trends and strong competitive pressures. They expect a gradual increase in provision expense, more limited loan growth near-term, and stronger expense levels to pressure EPS growth, limiting enthusiasm for the shares. Firm continues to believe mgmt is building an attractive commercial business platform in a solid market, which, they expect, will position the co well in a takeout scenario three to five years out. However, the premium valuation versus the industry will likely keep investors on the sidelines until the headwinds subside.
07:34 AGN Allergan: 4Q07 earnings solid; RX pipeline takes a hit - Susquehanna (64.37 )

07:34 MEG prelim $0.43, includes items, doesn’t comapre to the $0.70 First Call consensus; revs $243.78 mln vs $261.25 mln First Call consensus

07:34 ARAY Accuray downgraded to Hold from Buy at Soleil- following poor F2Q08 performance (14.98 )

07:34 FLE Fleetwood issues Q3 downside guidance (5.00 )

Co sees Q3 revs down 20% yr/yr to approx $354 mln vs $429.3 mln consensus. Co expects to report a significant operating loss, but the loss will be reduced moderately yr/yr because of successful restructuring and cost-cutting initiatives, before considering gains from the ongoing sale of idle real estate. “The third quarter, which encompasses the seasonally slowest three months of the year, was incrementally impacted by the uncertainties regarding the housing and financial markets. The slower sales trend relative to the prior year was apparent in all of our businesses throughout the quarter. Lower year-over-year travel trailer sales reflected the soft industry market, as well as our downsizing of production facilities and elimination of certain product offerings.”
07:34 TKR sees FY08 $2.75-2.95 vs $2.86 First Call consensus

07:33 TKR sees Q1 $0.70-0.80 vs $0.73 First Call consensus

07:33 BMY sees FY08 $1.60-1.70 vs $1.71 First Call consensus, prior guidance $1.65-1.75

07:33 FLO sees FY08 $1.07-1.17 vs $1.12 First Call consensus; sees revs $2.21-2.25 mln vs $2.20 bln First Call consensus

07:32 BMY prelim $0.33 vs $0.34 First Call consensus; revs $5.38 bln vs $5.24 bln First Call consensus

07:32 HERO prelim $0.35 vs $0.31 First Call consensus; revs $262.9 mln vs $277.39 mln First Call consensus

07:32 ICE prelim $0.94 vs $0.92 First Call consensus; revs $159.3 mln vs $154.43 mln First Call consensus

07:31 TKR prelim $0.51 vs $0.55 First Call consensus; revs $1.34 bln vs $1.28 bln First Call consensus

07:31 BHI Baker Hughes downgraded to Market Perform from Outperform at Wachovia (67.27 )

07:31 Tensions rise in lending probes - WSJ

WSJ reports tensions are beginning to rise between state and federal authorities as the number of agencies investigating mortgage fraud continues to grow. New York Attorney General Andrew Cuomo is in a tussle with the Office of Federal Housing Enterprise Oversight, the federal regulator that oversees mortgage giants FNM and FRE. Their dispute is over who should be the investigating allegations of fraudulent appraisals and mortgage fraud. The interaction of state and federal oversight has long been a political hot potato. Friction is expected to increase as rising number of participants — including the Justice Department and SEC — probe the mortgage area. Also contributing to tension is congressional scrutiny on the role of regulators during the housing boom. A number of senators have become critical of Washington regulators for not being aggressive enough in taking action against certain subprime-lending practices
07:31 SSP sees Q1 $0.38-0.42 vs $0.44 First Call consensus; sees revs up 10-12% yr/yr

07:31 AMSC sees FY08 ($0.69)-($0.74) vs ($0.77) First Call consensus; sees revs $105-110 mln vs $102.79 mln First Call consensus

07:31 CELG prelim $0.31 vs $0.31 First Call consensus; revs $414.6 mln vs $390.88 mln First Call consensus

07:30 SSP prelim $0.75 vs $0.70 First Call consensus; revs $679.2 mln vs $682.56 mln First Call consensus

07:30 FLO prelim $0.23 vs $0.21 First Call consensus; revs $473.7 mln vs $468.83 mln First Call consensus

07:30 AMSC prelim ($0.18), may not comapre to the ($0.20) First Call consensus; revs $32.6 mln vs $27.45 mln First Call consensus

07:30 HSTX Harris Stratex downgraded to Hold at Morgan Joseph (14.33 ) -Update-

Morgan Joseph downgrades HSTX to Hold from Buy, following Q208 sales that exceeded firm and consensus estimates yet mitigated by a weaker than anticipated gross margin and high-than-expected expenses
07:30 LANC prelim $0.54 vs $0.61 First Call consensus; revs $306 mln vs $299.60 mln First Call consensus

07:30 State subprime probe takes a new tack - WSJ

WSJ reports the New York attorney general’s office, pursuing an investigation into whether Wall Street cos improperly packaged and sold mortgage securities, is latching onto a powerful regulatory tool: the 1921 Martin Act. The state law, considered one of the most potent legal tools in the nation, spells out a broad definition of securities fraud without requiring that prosecutors prove intent to defraud. As a result, the act has become an influential hammer in recent years for New York state prosecutors in cracking down on securities manipulation, improper allocation of initial public offerings of stock and misleading stock research on Wall Street. Now the staff of New York Attorney General Andrew Cuomo is looking to use this legal lever as it examines whether cos might have committed securities fraud by glossing over warning signs of bad mortgage loans they packaged into securities, people familiar with the matter said. Some officials on Wall Street hadn’t expected Mr. Cuomo to employ the aggressive prosecutorial tactics against the financial industry used frequently by his predecessor, Eliot Spitzer. Using the Martin Act will provide an easier road to prosecute mortgage abuses than other investigators examining this area. The act also will allow the New York attorney general to pursue both criminal and civil penalties… The attorney general’s office has issued Martin Act subpoenas, which don’t spell out whether matters are civil or criminal in nature, according to people familiar with the matter. So far, the recipients include BSC, DB, MS, MER, and LEH, possibly among others.
07:29 WU Western Union beats by $0.01, reports revs in-line; guides FY08 EPS in-line, revs in-line (20.86 )

Reports Q4 (Dec) earnings of $0.32 per share, $0.01 better than the First Call consensus of $0.31; revenues rose 11.6% year/year to $1.31 bln vs the $1.3 bln consensus. Co issues in-line guidance for FY08, sees EPS of $1.24-1.28 vs. $1.26 consensus; sees FY08 rev growth of 9-11% which equates to ~$5.34-5.44 bln vs. $5.39 bln consensus.
07:28 WU sees FY08 $1.24-1.28 vs $1.26 First Call consensus; sees revs $5.34-5.44 bln vs $5.39 bln First Call consensus

07:28 GXP Great Plains Engy initiated with an Outperform at Wachovia (27.01 )

07:27 WU prelim $0.32 vs $0.31 First Call consensus; revs $1.3 bln vs $1.30 bln First Call consensus

07:26 HSC Harsco beats by $0.04, beats on revs; guides Q1 EPS below consensus; guides FY08 EPS in-line (55.05 )

Reports Q4 (Dec) earnings of $0.74 per share, $0.04 better than the First Call consensus of $0.70; revenues rose 21.2% year/year to $974.6 mln vs the $906 mln consensus. Co issues downside guidance for Q1, sees EPS of $0.60-0.62 vs. $0.70 consensus. Co issues in-line guidance for FY08, sees EPS of $3.40-3.50 vs. $3.44 consensus.
07:26 BNP Paribas is considering a bid for Societe Generale - Bloomberg.com

Bloomberg.com reports BNP Paribas is considering a bid for Societe Generale, the bank that last week reported a record trading loss. BNP Paribas is studying a possible offer as other European banks do the same. The comments sent Societe Generale higher for a third day in Paris trading. The $7.3 bln loss from unauthorized trading raised questions about management oversight and may have left the bank vulnerable to a takeover. The trading loss forced Chairman Daniel Bouton to turn to shareholders for 5.5 bln euros in a stock offering to replenish capital, but board says Societe Generale has enough funds to remain independent and is in ‘good health.’ Prime Minister Francois Fillon told Parliament this week that the government will ensure that Societe Generale remains in French hands, encouraging speculation that the government favors a combination with BNP Paribas to ward off a foreign suitor.
07:26 CENX Century Aluminum downgraded to Market Perform at Friedman Billings- tgt $50 (51.21 )

Friedman Billings downgrades CENX to Market Perform from Outperform and cut their tgt to $50 from $58 to reflect their reduced 2008 estimates as concerns over the short-term Chinese volume disruptions dissipate, they expect global demand growth concerns will come back and weigh on the space and believe that investors should use the recent run to take profits. In addition, for CENX specifically, a fair valuation, downside risk to 2008 consensus estimates, company catalysts having played out, and being a small cap leveraged name to aluminum prices, reduces the appeal of holding this name at this time.
07:24 EQT Equitable Res misses by $0.03, beats on revs (53.50 )

Reports Q4 (Dec) earnings of $0.49 per share, $0.03 worse than the First Call consensus of $0.52; revenues rose 8.8% year/year to $384.8 mln vs the $379.7 mln consensus. In 2008, the total sales for the year are forecast to be 80-81 Bcfe. Daily sales volumes are expected to hit 235 MMcfe by year end, a 12% increase over the year end 2007 run rate.
07:23 VOD Vodafone tops forecasts with robust Q3 revs - Reuters (35.38 )

Reuters reports the co topped mkt forecasts with robust third-quarter revenues on the back of strong emerging mkts and mobile data growth. Vodafone said revenues rose to 9.2 bln pounds ($18.33 bln), with organic growth of 4.4%, compared to expectations of 3.5-4.0% growth — broadly stable compared with the last quarter. In Vodafone’s fast-growing EMAPA regions — eastern Europe, the Middle East and Africa, Asia Pacific and affiliates — organic revenue growth surged to 13.7%.
07:22 CAM Cameron beats by $0.01, beats on revs; guides Q1 EPS below consensus; guides FY08 EPS below consensus (43.06 )

Reports Q4 (Dec) earnings of $0.61 per share, $0.01 better than the First Call consensus of $0.60; revenues rose 24.8% year/year to $1.34 bln vs the $1.24 bln consensus. Co issues downside guidance for Q1, sees EPS of $0.50-0.53 vs. $0.59 consensus. Co issues downside guidance for FY08, sees EPS of $2.45-2.55 vs. $2.63 consensus.
07:22 AZN AstraZeneca Q4 Profit Down 12.5% - AP (42.02 )

According to the AP, AstraZeneca PLC posted an 12.5 percent fall in fourth quarter profits on Thursday as restructuring costs — related in part to its acquisition of MedImmune Inc. — outweighed healthy sales. AstraZeneca, Britain’s second-largest drugmaker behind GlaxoSmithKline PLC, earned $1.27 billion in the three months to Dec. 31, down from $1.43 billion in the same period a year earlier. Revenue rose 14 percent over the quarter to $8.17 billion, from $7.15 billion. For the full year, profit was down 6.5 percent at $7.98 billion, compared to $8.54 billion a year earlier, while revenue rose 7 percent to $29.56 billion, from $26.48 billion. Chief Executive Officer David Brennan said the company was aiming for constant currency sales growth in the low to mid-single digits in 2008, but warned of increasing generic competition to the company’s heart drug Toprol-XLTM.
07:21 NVO Novo Nordisk fourth-quarter earnings fall 43% - Bloomberg (60.95 )

Bloomberg reports the co said Q4 profit fell 43% because of costs to stop development of a new diabetes treatment. The co is stepping up its share buyback. Net income declined to 977 million kroner ($194 mln), or 1.55 kroner a share, from 1.72 bln kroner, or 2.70 kroner, a year earlier, the co said. Analysts expected profit of 808 mln kroner. Novo Nordisk plans to spend 16.5 bln kroner repurchasing shares, increasing a previous target by 6.5 bln kroner.
07:20 NDAQ NASDAQ misses by $0.01, reports revs in-line (44.65 )

Reports Q4 (Dec) earnings of $0.46 per share, excluding non-recurring items, $0.01 worse than the First Call consensus of $0.47; revenues rose 15.6% year/year to $211.6 mln vs the $210.2 mln consensus. NASDAQ has decided to forgo providing guidance as a standalone entity at this time given the transactions that are expected to close during the first half of 2008 and the contributions that each will have on the financial results of the consolidated organization.
07:19 IMCL Imclone beats by $0.16, beats on revs (41.97 )

Reports Q4 (Dec) earnings of $0.41 per share, excluding non-recurring items, $0.16 better than the First Call consensus of $0.25; revenues rose 14.5% year/year to $151.4 mln vs the $145.3 mln consensus. Co reports Q4 W.W. Erbitux revs of $371 mln vs. $365.1 mln Street Expectation; 4Q07 U.S. Erbitux revs of $185 mln vs. $183 mln Street Expectation; E.U. Erbitux revs of $186 mln vs. $179 mln Street Expectation.
07:19 PG Procter & Gamble beats by $0.01, beats on revs; guides FY08 EPS in-line; to separate its coffee business (65.09 )

Reports Q2 (Dec) earnings of $0.98 per share, $0.01 better than the First Call consensus of $0.97; revenues rose 9.4% year/year to $21.57 bln vs the $21.25 bln consensus. PG to separate its coffee business and create an independent company named The Folgers Coffee Company . Co issues in-line guidance for FY08, sees EPS of $3.46-3.50 vs. $3.49 consensus. P&G announced plans to separate its coffee business and create an independent company named The Folgers Coffee Company. The coffee business had sales of approximately $1.6 billion and operating income of about $350 million in fiscal 2007. Assuming a split-off, the company expects the deal to be dilutive to EPS by 3 to 5 cents on an annual basis. P&G expects to determine the final deal structure during the April-June 2008 quarter and complete the transaction during the July-December 2008 period.

07:18 PCCC PC Connection reports EPS in-line, beats on revs (10.80 )

Reports Q4 (Dec) earnings of $0.24 per share, in-line with the single analyst est of $0.24; revenues rose 13.5% year/year to $489.6 mln vs the $462.9 mln single analyst est.
07:17 LB LaBarge beats by $0.02, beats on revs (13.72 )

Reports Q2 (Dec) earnings of $0.21 per share, $0.02 better than the single analyst First Call consensus of $0.19; revenues rose 10.2% year/year to $67.1 mln vs the $65.5 mln single analyst consensus. “We expect sales and earnings in the third and fourth quarters of fiscal 2008 will compare favorably with both this year’s second quarter and the comparable year-ago periods, translating to another record year for LaBarge.”
07:17 ARLP Alliance Resource beats by $0.07, misses on revs (35.34 )

Reports Q4 (Dec) earnings of $0.89 per share, $0.07 better than the First Call consensus of $0.82; revenues fell 4.1% year/year to $252.4 mln vs the $261.6 mln consensus. Total capital expenditures for 2008 are currently estimated in a range of $145.0 to $165.0 million. Based on its current projections for 2008, ARLP is estimating EBITDA in a range of $240.0 to $260.0 mln and net income in a range of $120.0 to $140.0 mln.
07:17 RTN Raytheon beats by $0.04, beats on revs; guides FY08 EPS in-line, revs in-line (63.43 )

Reports Q4 (Dec) earnings of $0.96 per share, excluding non-recurring items, $0.04 better than the First Call consensus of $0.92; revenues rose 7.9% year/year to $6.0 bln vs the $5.9 bln consensus. Co raises FY08 EPS guidance to $3.65-3.80 from $3.45-3.65, but it’s still below consensus of $3.81; sees FY08 revs of $22.4-22.9 bln vs. $22.7 bln consensus.
07:17 ODFL Old Dominion reports EPS in-line, beats on revs; guides FY08 EPS above consensus (26.70 )

Reports Q4 (Dec) earnings of $0.42 per share, in-line with the First Call consensus of $0.42; revenues rose 12.3% year/year to $358.7 mln vs the $345.3 mln consensus. Co issues upside guidance for FY08, sees EPS of $2.00-2.05 vs. $1.93 consensus. The co also reaffirmed their long-term goal of achieving revenues of $2 billion or more for 2010.
07:16 WIRES On The Wires

McKesson (MCK) announces a five-yr agreement under which Aetna will use McKesson’s ClaimsXten to further enhance its claims management capabilities… Millennium Pharmaceuticals (MLNM) and Harvard Medical School’s Office of Technology Development announce an innovative collaboration agreement to pursue a research program in the area of protein homeostasis, an emerging and expanding field of cancer biology… Coach (COH) announces plans to enter the Russian market through an arrangement with Jamilco, a domestic distributor with significant luxury brand experience. The co expects to open at least 15 locations in Russia over a five year period… Syngenta (SYT) announces that it has entered into an agreement with Athenix for the discovery of novel corn insect and soybean cyst nematode resistance genes. Syngenta will have exclusive global ownership on any corn and soybean transformation events developed using Athenix lead genes, excluding Australia and New Zealand.
07:16 CAM sees Q1 $0.50-0.53 vs $0.59 First Call consensus

07:16 CAM sees FY08 $2.45-2.55 vs $2.63 First Call consensus

07:15 CVS CVS Corp beats by $0.03, beats on revs (36.02 )

Reports Q4 (Dec) earnings of $0.58 per share, excluding non-recurring items, $0.03 better than the First Call consensus of $0.55; revenues rose 81.8% year/year to $21.94 bln vs the $21.36 bln consensus.
07:15 CAM prelim $0.61, ex items vs $0.60 First Call consensus; revs $1.34 bln vs $1.24 bln First Call consensus

07:15 RX IMS Health beats by $0.01, beats on revs; guides FY08 EPS above consensus, revs in-line (21.13 )

Reports Q4 (Dec) earnings of $0.43 per share, $0.01 better than the First Call consensus of $0.42; revenues rose 11.5% year/year to $605.9 mln vs the $581.1 mln consensus. Co issues mixed guidance for FY08, sees EPS of 1.70-1.76 vs. $1.68 consensus; sees FY08 revs of 2324-2389 vs. $2.34 bln consensus.
07:15 SEE Sealed Air upgraded to Neutral from Underperform at Credit Suisse (24.87 )

07:14 GMCR Green Mtn Coffee beats by $0.01, beats on revs; guides Q2 EPS in-line; guides FY08 EPS in-line (34.40 )

Reports Q1 (Dec) earnings of $0.12 per share, $0.01 better than the First Call consensus of $0.11; revenues rose 51.7% year/year to $126.4 mln vs the $118 mln consensus. Co issues in-line guidance for Q2, sees EPS of $0.19-0.23 vs. $0.20 consensus; co sees revs up 40-45%. Co issues in-line guidance for FY08, sees EPS of $0.72-0.77, compared to previous guidance of $0.70-0.75, vs. $0.73 consensus; co sees revs up 40-45%, compared to previous guidance of 35-40%.
07:14 ATK Alliant Tech beats by $0.06, beats on revs; guides FY08 EPS in-line; guides downside FY09 EPS (102.34 )

Reports Q3 (Dec) earnings of $1.65 per share, $0.06 better than the First Call consensus of $1.59; revenues rose 16.7% year/year to $1.05 bln vs the $1.03 bln consensus. Co issues in-line guidance for FY08, sees EPS of $6.25-6.35 vs. $6.35 consensus. Co issues downside guidance for FY09, sees EPS of $7.10-7.30 vs. $7.42 consensus.
07:14 WYE Wyeth misses by $0.01, beats on revs; guides FY08 EPS below consensus (39.70 )

Reports Q4 (Dec) earnings of $0.78 per share, $0.01 worse than the First Call consensus of $0.79; revenues rose 11.1% year/year to $5.8 bln vs the $5.61 bln consensus. Co issues downside guidance for FY08, sees EPS of $3.35-3.49, excluding non-recurring items, vs. $3.54 consensus.
07:14 WCC Wesco reports Q4 (Dec) results, revs in-line (36.50 )

Reports Q4 (Dec) earnings of $1.34 per share, may not be comparable to the First Call consensus of $1.16.
07:13 HLEX HealthExtras profiled in New America section of IBD (27.84 )

IBD reports though it only has been competing in the industry since late 2000 and holds a small share of the mkt, the co has been winning a growing number of state contracts in a field dominated by the Big Three. One major factor a state cited in Catalyst’s (The co’s mgmt business) favor was its transparency: The co makes the way it prices services clear and understandable. “Clients like transparency. For some employers, that’s extremely important,” said Newton Juhng, analyst with BB&T Capital Markets. HLEX also has been gaining accounts from bigger rivals in the private sector… Like others in the industry, HealthExtras makes more money steering clients to generic drugs than branded drugs. Unlike most rivals, it doesn’t keep the spread between drug rates they’ve negotiated to pay retailers and the amount they bill their clients. HealthExtras charges a flat fee for each claim it processes and urges members to buy generic drugs at low-cost retailers to save money. “We want all the cards face up on the table,” said HealthExtras CEO David Blair. “We walk the client through on what drugs cost and where.” As clients hit certain savings milestones, HealthExtras wins the right to raise administrative fees. “We’re creating a win-win. The client wins and we benefit,” Blair said. Its clients are mostly self-insured employers, including state and local govts, third-party administrators, managed care cos and individuals. Brooks O’Neil, analyst with Dougherty, expects more wins from states this year. Several new states will be up for grabs at midyear. HealthExtras puts a lot of emphasis on customer service, which has gained it high marks in industry rankings. The co also has won high scores for saving clients money. The payback is an annual client retention rate of 98%,” Blair said.
07:13 JRJC China Finance Online assumed with a Buy at Jefferies- tgt $28 (16.25 )

Jefferies assumes JRJC with a Buy and sets a $28 tgt, as they expect CAGR 69% expansion in JRJC’s EPS during 2007-10 while favoring the co’s new and more robust business model that emphasizes subscription-based revenues with value-added services.
07:12 ADS Alliance Data upgraded to Outperform from Peer Perform at Bear Stearns (42.70 )

07:11 CL Colgate-Palmolive beats by $0.02, beats on revs; new 30 mln share repurchase program (73.50 )

Reports Q4 (Dec) earnings of $0.91 per share, $0.02 better than the First Call consensus of $0.89. “On January 30, 2008, the Board of Directors authorized a new 30 mln share repurchase program. The Company plans to repurchase the shares of common stock over the next two years.”
07:11 DEG Delhaize Group downgraded to Neutral from Overweight at JP Morgan (76.63 )

07:11 LEA Lear reports Q4 (Dec) results, beats on revs; guides FY08 revs in-line (27.05 )

Reports Q4 (Dec) earnings of $0.34 per share, includes restructuring costs and other special items, may not be comparable to the First Call consensus of $0.67; revenues fell 9.8% year/year to $3.86 bln vs the $3.6 bln consensus. Co issues in-line guidance for FY08, sees FY08 revs of $15 bln vs. $15.14 bln consensus; co sees Y08 core operating earnings of $660-700 mln.
07:10 BKC Burger King beats by $0.04, beats on revs; expects to exceed guidance for FY08 (24.16 )

Reports Q2 (Dec) earnings of $0.36 per share, $0.04 better than the First Call consensus of $0.32; revenues rose 9.7% year/year to $613 mln vs the $597.1 mln consensus. Co said, “we expect to exceed our initial financial guidance for fiscal 2008. We have increased our year over year earnings per share growth guidance to be in excess of 15 percent. We remain committed to delivering top of the industry financial performance, creating significant value for our shareholders.”
07:10 CALLS Early Research Calls III

Upgrades: JMP upgrades Alliance Data (ADS 42.70) to Outperform from Market Perform… J.P Morgan upgrades Pool (POOL 23.86) to Overweight from Neutral… SunTrust upgrades Alliance Data (ADS 42.70) to Buy from Neutral and sets a $60 tgt, following Q407 results that met expectations with raised FY08 EPS guidance… Lehman upgrades Pinnacle West (PNW 37.77) to Equal Weight from Underweight… Rochdale upgrades Comerica (CMA 41.36) to Hold from Sell and raises their tgt to $41 from $34, as they believe downside risk has dissipated with aggressive Fed rate cuts… Keefe Bruyette upgrades Enterprise Financial (EFSC 21.47) to Market Perform from Underperform. Downgrades: Bear Stearns downgrades NuCo2 (NUCO 28.12) to Peer Perform from Outperform… Bear Stearns downgrades Saks (SKS 18.46) to Underperform from Peer Perform… JP Morgan downgrades W&T Offshore (WTI 28.50) to Underweight from Neutral… RBC downgrades Schlumberger (SLB 75.75) to Sector Perform from Outperform… RBC downgrades Baker Hughes (BHI 67.27) to Underperform from Outperform… Keefe Bruyette downgrades Affiliated Managers (AMG 97.49) to Market Perform from Outperform… Keefe Bruyette downgrades TriCo Bancshares (TCBK 19.24) to Market Perform from Outperform. Miscellaneous: RBC initiates Synta Pharma (SNTA 7.16) with an Outperform… Stanford initiates select software stocks, the firm initiates Microsoft (MSFT 32.20), Guidance Software (GUID 11.13), and Mcafee (MFE 33.24) with Buys. The firm also initiates Wind River (WIND 8.40), Citrix (CTXS 34.45), CA (CA 22.30), Red Hat (RHT 18.04) and Symantc (SYMC 17.05) with Holds.
07:09 PG to separate its coffee business and create an independent company named The Folgers Coffee Company

07:09 UA Under Armour beats by $0.02, reports revs in-line; guides FY08 revs below consensus; reaffirms 1H EPS guidance (37.59 )

Reports Q4 (Dec) earnings of $0.34 per share, $0.02 better than the First Call consensus of $0.32; revenues rose 29.2% year/year to $174.8 mln vs the $173.5 mln consensus. Co issues downside guidance for FY08, sees FY08 revs of $765-775 mln vs. $787.87 mln consensus. UA continues to anticipate diluted earnings per share in the range of $0.03 to $0.05 for the first half of 2008.
07:08 PPL PPL Corp beats by $0.05, misses on revs; reaffirms Y08, Y10 guidance (47.97 )

Reports Q4 (Dec) earnings of $0.60 per share, excluding non-recurring items, $0.05 better than the First Call consensus of $0.55; revenues rose 5.2% year/year to $1.61 bln vs the $1.84 bln consensus. Co reaffirms guidance for FY08, sees EPS of $2.35-2.45, may not be comparable to $2.46 consensus. Co reaffirms Y10 EPS of $4.00-4.60.
07:07 PG sees FY08 $3.46-3.50 vs $3.49 First Call consensus

07:07 WYE sees FY08 $3.35-3.49 vs $3.54 First Call consensus

07:07 PRB PRB Energy announces departure of Chief Executive Officer (0.55 )

Co announces that the Board of Directors has accepted the resignation of Robert Wright from his positions as Chairman and Chief Executive Officer, effective immediately. William Hayworth, the co’s President and Chief Operating Officer since June 2004, will become Chief Executive Officer.
07:07 RX sees FY08 $1.70-1.76 vs $1.68 First Call consensus; sees revs $2.324-2.389 bln vs $2.34 bln First Call consensus

07:06 PPL reaffirms FY08 $2.35-2.45 vs $2.46 First Call consensus

07:06 PPL sees FY08 $2.35-2.45 vs $2.46 First Call consensus; sees revs ${REV} vs $7.39 bln First Call consensus

07:06 PG prelim $0.98 vs $0.97 First Call consensus; revs $21.58 bln vs $21.25 bln First Call consensus

07:06 RX prelim $0.43 vs $0.42 First Call consensus; revs $605.9 mln vs $581.08 mln First Call consensus

07:05 WYE prelim $0.78, ex items, vs $0.79 First Call consensus; revs $5.8 bln vs $5.61 bln First Call consensus

07:05 BKC prelim $0.36 vs $0.32 First Call consensus; revs $613.0 mln vs $597.14 mln First Call consensus

07:04 UA continues to anticipate diluted earnings per share in the range of $0.03 to $0.05 for the first half of 2008.

07:04 WCC prelim $1.34 vs $1.16 First Call consensus; revs $1.49 bln vs $1.48 bln First Call consensus

07:04 CL prelim $0.91, ex items vs $0.89 First Call consensus; revs $3.64 bln vs $3.54 bln First Call consensus

07:04 LEA sees FY08 revs approx $15 bln vs $15.14 bln First Call consensus

07:04 LEA prelim $0.34 may not compare to $0.67 First Call consensus; revs $3.9 bln vs $3.60 bln First Call consensus

07:04 RTN prelim $0.96 vs $0.92 First Call consensus; revs $6 bln vs $5.90 bln First Call consensus

07:03 UA sees FY08revs $765-775 mln vs $787.87 mln First Call consensus

07:03 IMCL prelim $0.41, ex items, vs $0.25 First Call consensus; revs $151.4 mln vs $145.30 mln First Call consensus

07:03 ISIS ISIS Pharm announces equity investment in Ibis Biosciences subsidiary by Abbott; option acquired to purchase remaining Ibis Equity (15.14 )

Isis Pharmaceuticals (ISIS) announces that Abbott (ABT) is investing up to $40 mln in Ibis Biosciences, an Isis subsidiary. The investment will allow Ibis to further develop the Ibis T5000 Biosensor System. Under the terms of the agreement, ABT will initially acquire approx 10.25% of the equity in Ibis for $20 mln. ABT will have the right to invest an additional $20 mln before July 31, 2008 for a total of 18.6% of Ibis equity. ABT will also receive an exclusive option to purchase the remaining equity in Ibis for an additional $175 to $195 mln through June 30, 2009 plus an earn out tied to achievement of certain cumulative sales. The option exercise price can increase to up to $190 to $210 mln with Ibis’ successful completion of pre-negotiated milestones.
07:02 GY GenCorp: Steel Partners announces nomination of six ‘highly qualified’ director candidates for election to the GenCorp Board (11/13 )

Steel Partners (14.2% stake in GY) announces that it has nominated a slate of six highly qualified director nominees for election to the Board of Directors of GenCorp. Steel Partners also announced that it sent a letter to the Chairman of the Board explaining that Steel Partners was compelled to submit the nomination letter as a last resort after it could not reach a settlement with co. In the letter, Steel Partners stated that despite its frustration with the Board it stands ready to enter into a meaningful and constructive dialogue with the Board in furtherance of reaching an equitable settlement that benefits all shareholders.
07:02 NDAQ prelim $0.46 vs $0.47 First Call consensus; revs $211.6 mln vs $210.22 mln First Call consensus

07:02 GMCR sees FY08 $0.83-0.88 vs $0.73 First Call consensus; sees revs up 40-45%

07:02 UA prelim $0.34 vs $0.32 First Call consensus; revs $174.8 mln vs $173.50 mln First Call consensus

07:02 GMCR sees Q2 $0.22-0.26 vs $0.20 First Call consensus; sees revs up 40-45%

07:02 ODFL sees FY08 $2.00-2.05 vs $1.93 First Call consensus

07:01 GMCR prelim $0.12 vs $0.11 First Call consensus; revs $126.4 mln vs $118.00 mln First Call consensus

07:01 ODFL prelim $0.42 vs $0.42 First Call consensus; revs $358.7 mln vs $345.31 mln First Call consensus

07:01 PCCC prelim $0.24 vs $0.24 First Call consensus; revs $490 mln vs $462.90 mln First Call consensus

07:01 LB prelim $0.21 vs $0.19 First Call consensus; revs $67.05 mln vs $65.47 mln First Call consensus

07:00 ADBL Audible to be acquired by Amazon.com for $11.50 per/share (9.33 )

Amazon.com (AMZN) announces that it has reached an agreement to acquire Audible (ADBL). Under the terms of the agreement, AMZN will commence a cash tender offer to purchase all of the outstanding shares of ADBL for $11.50/share and will assume ADBL’s outstanding stock-based awards, for an aggregate transaction value of approx $300 mln which includes ADBL’s cash and short-term investments at closing.
07:00 CVS prelim $0.58 vs $0.55 First Call consensus; revs $21.9 bln vs $21.36 bln First Call consensus

07:00 ARLP prelim $0.89 vs $0.82 First Call consensus; revs $252.4 mln vs $261.60 mln First Call consensus

06:59 ATK sees FY09 $7.10-7.30 vs $7.42 First Call consensus

06:59 ATK sees FY08 $6.25-6.35 vs $6.35 First Call consensus

06:58 ATK prelim $1.65 vs $1.59 First Call consensus; revs $1.05 bln vs $1.03 bln First Call consensus

06:55 IVC Invacare beats by $0.15, beats on revs; guides FY08 EPS in-line (21.89 )

Reports Q4 (Dec) earnings of $0.59 per share, excluding non-recurring items, $0.15 better than the First Call consensus of $0.44; revenues rose 10.8% year/year to $426.8 mln vs the $393.3 mln consensus. Co issues in-line guidance for FY08, sees EPS of $1.35-1.50 vs. $1.46 consensus.
06:53 VVC Vectren reports Q4; reaffirms Y08 EPS guidance (27.21 )

Co reports Q4 EPS of $0.60, ex-items, vs $0.62 consensus; reports revs revs up 6% yr/yr to $644.8 mln vs $669.2 mln two analyst estimate. Co reaffirms Y08 EPS of $1.85-2.05 vs $1.96 consensus. Co sees Y09 EPS growth of 5% or more yr/yr.
06:52 OHI Omega Health reports EPS in-line, beats on revs; guides FY08 FFO in-line (16.37 )

Reports Q4 (Dec) funds from operations of $0.35 per share, in-line with the First Call consensus of $0.35; revenues rose 9.6% year/year to $39.6 mln vs the $38.5 mln consensus. Co issues in-line guidance for FY08, sees FFO of $1.41-1.43 vs. $1.43 consensus.
06:49 HBI Hanesbrands misses by $0.01, beats on revs (24.76 )

Reports Q4 (Dec) earnings of $0.38 per share, $0.01 worse than the First Call consensus of $0.39; revenues rose 2.4% year/year to $1.16 bln vs the $1.14 bln consensus.
06:48 HBI prelim $0.38 vs $0.39 First Call consensus; revs $1.16 bln vs $1.14 bln First Call consensus

06:41 CALLS Early Research Calls II

Upgrades: Wachovia upgrades Gilead Sciences (GILD 44.00) to Outperform from Market Perform, based on valuation following Q407 revenue and EPS that exceeded consensus estimates and a forecast for higher ‘08 product sales… JP Morgan upgrades Hess (HES 90.44) to Overweight from Neutral… Bear Stearns upgrades Nordstrom (JWN 36.85) to Outperform from Peer Perform… Bear Stearns upgrades Astoria Financial (AF 24.82) to Outperform from Underperform. Downgrades: Jefferies downgrades Adobe Systems (ADBE 35.94) to Underperform from Buy and lowers their tgt to $30 from $50, based on channel checks that indicate business has decelerated more than expected in January, concern that the slowing consumer will negatively compound the end of the C3 cycle, delays in anticipation of Acrobat 9 and confidence in CS4 (late FY0 reinvigorating growth materially that has diminished… Deutsche Bank downgrades Monster Worldwide (MNST 28.61) to Hold from Buy and lowers their tgt to $27 from $47, based on job postings declines in January, increasing concerns regarding a recession, execution risk, and believe shares will remain range-bound as they need to see stability in recruitment activity… BofA downgrades Polo Ralph Lauren (RL 60.73) to Neutral from Buy… JP Morgan downgrades Cadence Design Systems (CDNS 15.16) to Underweight from Neutral. Miscellaneous: Broadpoint initiates Take-Two Interactive Software (TTWO 16.33) with a Buy and sets a $20 tgt, based on the premise that the co will exceed consensus estimates for the next three quarters, mostly due to upside in GTA IV revenue.
06:37 ALV Autoliv beats by $0.14, beats on revs (47.89 )

Reports Q4 (Dec) earnings of $1.36 per share, excluding non-recurring items, $0.14 better than the First Call consensus of $1.22; revenues rose 11.0% year/year to $1.78 bln vs the $1.73 bln consensus.
06:37 WIBC Wilshire Bancorp reports Q4 EPS of $0.19 vs $0.24 First Call consensus (7.82 )

06:36 WIRES On The Wires

Oncolytics Biotech (ONCY) announces that it has met the initial criteria to proceed to full enrolment in its U.S. Phase II trial to evaluate the intravenous administration of REOLYSIN in patients with various sarcomas that have metastasized to the lung… CNinsure (CISG) announces the signing of definitive agreements to acquire majority interests in Changsha Lianyi Insurance Agency and Jiangmen Fanhua Zhicheng Insurance Agency, in an efforts to further expand its distribution network in China. The transactions are expected to close in the first quarter of 2008.
06:36 CALLS Early Research Calls I

Downgrades: Deutsche Bank downgrades YUM Brands (YUM 54.80) to Hold from Buy and lowers their tgt to $37 from $43, based on a high relative valuation, comp weakness at McDonald’s, significant margin compression at chicken processors which suggests big price increases and accelerating inflation in China. Miscellaneous: Caris initiates Nokia (NOK 35.37) with an Above Average, as they believe the co’s alignment towards the mobile internet coupled with its superior execution model is expected to propel the top-line and bottom-line over the next couple of years while still having upside to margins, in their view… Caris initiates Research in Motion (RIMM 93.79) with an Average and sets a $96 tgt, as they favor the co’s innovative technology and business model yet believe most growth catalysts are built into shares while dynamics in the competitive landscape coupled with macro-weakness concerns lead them to take a cautious approach… Oppenheimer initiates NewMarket (NEU 52.06) with an Outperform and sets a $68 tgt, as they believe NewMarket is well positioned in the global petroleum additives market, given its unique and differentiated product offering in value-added segments and cost effective formulations in more commoditized sectors… Standpoint Research initiates General Electric (GE 34.94) with a Buy and sets a 3-yr tgt fo $48, based on an infrastructure segment which generates 35% of the co’s revenue that is well positioned for growth in ‘08 and beyond, a strong backlog to capitalize on and drive solid growth in the near-term, and believe shares could outperform in a market rebound despite its low-beta status, in their view.
06:32 CRGN CuraGen reports Q4 EPS of ($0.20) vs ($0.19) consensus; co expects to use approx $25 mln to fund its Y08 operations (0.70 )

06:31 ATSI ATS Medical has received a request for additional information and clarification from the FDA regarding its PMA approval application for its ATS 3f Aortic Bioprosthesis (1.79 )

Co announces it has received a request for additional information and clarification from the FDA regarding its PMA approval application for its ATS 3f Aortic Bioprosthesis. Additionally, the Company announced the same valve has been approved by the Canadian regulatory authorities for sale in Canada.
06:31 CRR Carbo Ceramics beats by $0.01, beats on revs (34.16 )

Reports Q4 (Dec) earnings of $0.56 per share, $0.01 better than the First Call consensus of $0.55; revenues rose 7.8% year/year to $93.7 mln vs the $90.3 mln consensus.
06:31 ASYS Amtech Systems announces new solar orders totaling $4.3 million (9.65 )

Co announces that its subsidiary, Tempress Systems, has received an additional $4.3 mln in orders for diffusion processing systems from the solar cell industry. These new orders consist of two new German customers and a follow-on order from an existing customer based in the Asia-Pacific market. Amtech expects the $4.3 mln in orders to ship in fiscal 2008, which began October 1, 2007. Since October 1, 2007, Amtech has received solar orders totaling approximately $33 mln.
06:30 CRR prelim $0.56 vs $0.55 First Call consensus; revs $93.7 mln vs $90.32 mln First Call consensus

06:26 Japan stocks up nearly 2 pct on exporters, banks; Sensex ends down 110pts

Japanese stocks rose almost 2% on Thursday, buoyed by short-covering in Toyota Motor and other blue-chip exporters, while banks erased nearly all their early losses as subprime fears eased slightly. The benchmark Nikkei was up 1.85% at 13,592.47, a gain of more than 200 points. The broader TOPIX was up 1.98% at 1,346.31. Hong Kong stocks fell for a second straight day on Thursday, knocked by a slew of bad news ranging from China’s weather-related problems to possible credit downgrades of top U.S. bond insurers. The benchmark Hang Seng Index closed down 0.8%, or 197.95 points, at 23,455.74 for a monthly loss of 15.7%… The Sensex opened with a positive gap of 51 points at 17,810. After moving a notch higher, the index slipped into negative zone and tumbled to a low of 17,418 - down 392 points from day’s open in the first hour of trade today. Fresh buying in frontline stocks saw the index stage a smart recovery, and rallied to a high of 18,009 - up 591 points from the day’s low. Volatility towards the close due to the expiry of the January series of futures & options saw the index settle with a loss of 110 points at 17,649. The Nifty ended 30 points lower at 5137. (Reuters, Business Standard)
06:26 European shares tumble early on financial woes

European equities fell nearly 2 percent on Thursday and banks topped losers as Wall Street was hit by new worries about more losses in the financial sector which eclipsed another cut in U.S. interest rates. By 0920 GMT, the pan-European FTSEurofirst 300 index was 1.8% weaker at 1,305.2, extending an early fall and adding to Wednesday’s 0.7% loss… London’s FTSE 100 fell 1.7%, Paris’s CAC-40 lost 1.6% and Frankfurt’s DAX tumbled 1.9%. Losses from the ailing bond insurance sector spread deeper into European banks on Wednesday as French group BNP Paribas and Switzerland’s UBS posted hefty write-downs. BNP Paribas fell 2.7% on Thursday. (Reuters)
06:16 S&P futures vs fair value: -11.6. Nasdaq futures vs fair value: -13.8.
06:16 European Markets

FTSE…5787.90…-49.40…-0.9%. DAX…6785.03…-90.32…-1.3%.
06:16 Asian Markets

Nikkei…13592.47…+247.44…+1.9%. Hang Seng…23455.74…-197.95…-0.8%.
06:15 EYE Advanced Medical Optics enters into phacoemulsification patent agreement with Bausch & Lomb (19.67 )

Co announces that it has entered into an agreement with Bausch & Lomb regarding AMO’s U.S. Patent entitled “Fluid Management Systems with Vertex Chamber” and its foreign counterparts, all of which relate to peristaltic pump fluidics used in phacoemulsification systems. Bausch & Lomb will pay AMO a royalty under the agreement. All other terms of the agreement are confidential.
06:14 COMDX OPEC will not change oil output ceiling at Friday meeting, according to Senior Gulf OPEC delegate -Reuters

06:11 WIRES On The Wires -Update-

CombiMatrix (CBMX) and Clarient (CLRT) jointly announce establishment of a partnership to market and sell a genomics-based cancer test called HemeScan, a test related to the treatment and care of chronic lymphocytic leukemia, among other cancers… ECtel (ECTX) announces that the mobile Caribbean operator, Digicel, has placed an order for ECtel’s revenue assurance solution, RAP.
06:11 MAT Mattel beats by $0.03, beats on revs (18.94 )

Reports Q4 (Dec) earnings of $0.76 per share, excluding $0.13 gain, $0.03 better than the First Call consensus of $0.73; revenues rose 3.8% year/year to $2.19 bln vs the $2.13 bln consensus.
06:09 OVEN TurboChef reiterates 2008 commercial revenue guidance (11.71 )

Co reiterates that it expects 2008 revenue for its commercial business to be between $125 and $135 mln.
06:09 NWL Newell Rubbermaid beats by $0.02, reports revs in-line; guides Q1 EPS in-line; reaffirms FY08 EPS guidance (24.82 )

Reports Q4 (Dec) earnings of $0.47 per share, excluding non-recurring items, $0.02 better than the First Call consensus of $0.45; revenues rose 0.3% year/year to $1.64 bln vs the $1.64 bln consensus. Co issues in-line guidance for Q1, sees EPS of $0.27 vs. $0.31 consensus. Co reaffirms guidance for FY08, sees EPS of $1.95-2.00 vs. $1.98 consensus.
06:07 HOT Starwood Hotels beats by $0.12, beats on revs; guides Q1 EPS below consensus; guides FY08 EPS in-line (42.90 )

Reports Q4 (Dec) earnings of $0.79 per share, $0.12 better than the First Call consensus of $0.67; revenues rose 2.4% year/year to $1.61 bln vs the $1.53 bln consensus. Co issues downside guidance for Q1, sees EPS of $0.26-0.22 vs. $0.39 consensus. Co issues in-line guidance for FY08, sees EPS of $2.32-2.57 vs. $2.46 consensus.
06:06 RDS.B Royal Dutch Shell confirms Q407 results (69.30 ) -Update-

Co reports Q407 earnings, on a current cost of supplies basis, were $6.7 bln compared to $6.0 bln a year ago. Basic CCS EPS increased by 13% versus the same quarter a year ago. A Q407 dividend has been announced of $0.36 per share, an increase of 11% over the US dollar dividend for the same period in 2006. The Q108 dividend is expected to be declared at $0.40 per share, an increase of 11% compared to the Q107. Basic CCS EPS increased by 13% versus the same quarter a year ago.
06:01 MBI MBIA announces closing and funding of $500 mln investment from Warburg Pincus (13.96 ) -Update-

Co announces the closing and funding of the sale of 16.1 mln shares of its common at a price of $31 per share for the aggregate amount of $500 mln pursuant to its Investment Agreement with Warburg Pincus. The stock sale is part of Warburg’s previously announced commitment to invest up to $1 bln in MBIA.
05:53 JCP J.C. Penney to merge operations, cut jobs - WSJ (44.79 )

The Wall Street Journal reports the chief executive of J.C. Penney (JCP), Myron Ullman, will announce today plans to merge the buying and marketing operations for store and online sales, cutting as many as 200 jobs.
05:47 MC Matsushita profit up 22%, outlook unchanged - Reuters (19.55 )

Reuters reports Matsushita (MC) reported a 22% gain in quarterly operating profit and it stood by its annual outlook that falls short of market expectations. Matsushita stood by its operating profit forecast of 477 bln yen ($4.49 bln) for the year to March, up from 459.54 bln yen a year earlier. That is below the consensus of 493.8 bln yen in a poll of 20 analysts by Reuters Estimates. Matsushita now plans heavy investments in LCD panel capacity in an effort to boost its presence in the faster-growing LCD TV segment. Operating profit came to 165.4 bln yen in October-December, up from 135.83 bln yen a year earlier. Net profit rose 46% to 115.2 bln yen on sales of 2.34 trln yen, down 3.8%.
05:42 BA Boeing sees high Asia arms sales to offset U.S. - Reuters (82.87 )

Reuters reports Boeing’s (BA) defense unit expects rising Asian military budgets to drive double-digit sales growth in the region and help offset flat U.S. defense spending, its chief Asia-Pacific salesman told Reuters on Thursday. Integrated Defense Systems , the Pentagon’s No. 2 supplier behind Lockheed Martin (LMT), sees revenue growth of up to 15% from Asia this year, as countries in the region lift their defense budgets to upgrade ageing equipment. “We believe the U.S. defense budget will be fairly flat for the next few years, so international business becomes more important for us to continue growing,” said Joe Song, Asia Pacific vice president of IDS in a telephone interview. Asian countries are making significant defense budget hikes of 5-8% annually to modernize their weapon systems, some of which are 35 to 40 years old, Song said.
05:39 More subprime pain in store - WSJ

The Wall Stret Journal reports UBS’s (UBS) warning yesterday that its 2007 write-downs would be $4 bln higher than it predicted last month signaled that further pain may lie ahead for Wall Street banks still vulnerable to the U.S. housing sector’s strife. Meanwhile, tough times for bond insurers such as MBIA (MBI) and Ambac (ABK) may spell trouble for banks that rely on those firms to insulate their mortgage holdings from losing value. Those concerns were in the spotlight yesterday as Oppenheimer & Co analyst Meredith Whitney warned that Wall Street faces at least $40 billion in losses if the insurers see their credit ratings cut or file for bankruptcy protection. “When it becomes clear [as we think it will] that more charges are on the horizon, we believe the market will take another turn for the worse,” Ms. Whitney wrote. Fueling the concerns, S&P predicted yesterday that the carnage might spread to a wider range of financial institutions, with total losses potentially exceeding $265 bln. Citigroup (C) and Merrill Lynch (MER) may be the most vulnerable to the next wave of write-downs. Together, Citigroup and Merrill already have absorbed a total of nearly $45 bln in losses on exposure to CDOs. But the banks are hardly immune to further erosion. They each have billions of dollars in remaining exposure to CDOs, pools of debt sliced up according to levels of risk. Their values are expected to continue dropping, and yesterday S&P took negative action on nearly 2,000 CDOs backed by mortgages. “We don’t think the CDO market has hit bottom yet,” said David Yan, head of CDO research at Credit Suisse.
05:34 RDS.B Shell posts 60% rise in net income on higher oil prices, divestments - WSJ (69.30 )

The Wall Street Journal reports Royal Dutch Shell (RDS-B) reported a 60% rise in Q4 net profit as higher oil prices and divestments outweighed tighter refining margins and a lower output. The co said net income for the three months ended Dec. 31 was $8.47 bln, or $1.36 a share, compared with $5.28 bln, or $0.83 a share, a year earlier. Results included a net gain of $963 mln, compared with a year-earlier gain of $515 mln. The latest figures also reflect tax-rate changes in Canada and Italy, and divestments in the co’s exploration and production unit. Annual profit rose 23% to $31.3 bln from $25.4 bln, breaking a new record. Q4 revenue rose 41% to $106.7 bln from $75.5 bln. Shell’s quarterly “clean” current cost of supplies, which strips out exceptional items and the impact of inventory gains and losses from the bottom line, stood at $5.72 bln from $5.5 bln. Analysts had expected costs of $5.83 bln.
05:25 Morning Newspaper Headlines: RDS-B - JCP - BA - MC

WSJ: Shell (RDS-B) posts 60% rise in net income on higher oil prices, divestments… J.C. Penney (JCP) to merge operations, cuts jobs… More subprime pain in store. Reuters: Boeing (BA) sees high Asia arms sales to offset U.S… Matsushita (MC) profit up 22%, outlook unchanged.
04:55 EDU New Oriental Education & Technology reaffirms Q3 net revenue guidance (52.25 )

Co reaffirms in-line guidance for Q3 (Feb), sees Q3 (Feb) revs of $42.1-44.2 mln vs. $44.74 mln First Call consensus. “China’s recent severe winter weather, the worst in over 50 years, is causing a short term negative impact on New Oriental’s business as some students face challenges getting to our classes, or parents choose to keep their kids at home,” stated Louis T. Hsieh, New Oriental’s CFO. “As a result, many students have deferred their enrollment to the next few quarters, and there have been some cancellations. Also, we are not seeing as many new enrollments as we normally do at this time of year. However, we do not expect any long-term negative impact to our business resulting from the temporary weather disruptions in China.
03:07 SPP Sappi Limited reports Q108 results (10.97 )

Reports Q1 (Dec) earnings of $0.18 per share, excluding non-recurring items, $0.03 worse than the First Call consensus of $0.21; revenues rose 8.7% y/y to $1.38 bln vs the $1.41 bln consensus.
02:57 TSM Taiwan Semi reports EPS in-line, beats on revs (8.89 )

Reports Q4 (Dec) earnings of $0.20 per share, in-line with the First Call consensus of $0.20; revenues rose 26.9% year/year to $2.89 bln vs the $2.86 bln consensus. Co expects Q108 revenue to be between NT$87 bln and NT$89 bln. GPM is expected to be between 42% and 44%. Operating PM is expected to be between 32% and 34%. ‘08 capex will be ~US$1.8 bln.
02:48 WIRES On The Wires -Update-

Oncolytics Biotech (ONCY) announces that it has met the initial criteria to proceed to full enrolment in its U.S. Phase II trial to evaluate the intravenous administration of REOLYSIN in patients with various sarcomas that have metastasized to the lung.
02:03 MRK Merck mentioned positively in Weekday Trader; Schering-Plough mentioned negatively - Barron’s Online (46.69 )

Barron’s Online reports Merck (MRK) offers a “golden” opportunity for bargain hunters while Schering-Plough’s (SGP) prospects remain less certain with the co relying on Vytorin for more than one-third of its pretax profits, according to estimates from Lehman Brothers. “If you’re a speculator, buy Schering,” says Scott Richter, a portfolio manager with Fifth Third Asset Management, “I wouldn’t rush into the stock. Merck is better insulated, and if you are a growth-oriented investor, the stock is on sale.” Fans say cost cutting, new drugs, and rising sales of other existing products could help offset a Vytorin revenue shortfall and patent expirations. Plus, Merck has lots of cash to pay a dividend and buy back stock. As for Schering, the co faces virtually no patent expirations in the coming years, and expects to launch a new anesthesia drug called sugammadex this year. Schering trades at 12.2x consensus earnings estimate for 2008, says Thomson. “Anytime a stock falls this much in less than one month, it can be hard to recommend it to at-home investors,” says Jon LeCroy, an analyst with Natixis Bleichroeder. “But institutional investors are looking at Schering.”
02:02 ‘Mad Money’ Recap: Lightning Round cont. - TheStreet.com

Cramer was bearish on Under Armour (UA) and E*TRADE Financial (ETFC).
02:01 ‘Mad Money’ Recap: Lightning Round - TheStreet.com

Cramer was bullish on Foster Wheeler (FWLT), Emerson Electric (EMR), Flextronics (FLEX), Waste Management (WMI), Republic Services (RSG), PetroChina (PTR) and Focus Media (FMCN).
02:00 Cramer’s ‘Mad Money’ Recap - TheStreet.com

On Wednesday’s edition, Jim suggests Tupperware (TUP) after its solid quarter and notes 85% of its business is overseas. He also cites its counter-cyclical nature and 70% gross margins. Finally, he says AT&T (T) at below $35 is a better value than Verizon (VZ) and warns the two could drop with more bad news from Sprint (S). In the Sudden Death round, Cramer was bullish on Precision Castparts (PCP) and Level 3 Communications (LVLT). He was bearish on Pfizer (PFE), Cal Dive (DVR), Sara Lee (SLE) and Pacific Ethanol (PEIX).
01:53 GFI Gold Fields reports Q407 results (15.12 )

Co announces net earnings for Q407 of R1,938 mln, compared with restated net earnings of R429 mln and R767 mln for Q307 and the Q406 quarters respectively. In US dollar terms net earnings for the December 2007 quarter were $281 mln, compared with restated earnings of $60 mln and $104 mln for Q307 and Q406 quarters respectively.
01:50 MBI MBIA Inc reports wider than expected loss (13.96 )

Reports Q4 (Dec) operating loss of $3.30 per share, excluding non-recurring items, $0.32 worse than the First Call consensus of ($2.98). The decline in net income for the year was primarily due to the previously announced pre-tax net loss which amounted to $3.5 bln, or on an after-tax basis, $2.3 bln or $18.04 per share, on financial instruments at fair value and foreign exchange. Significantly wider spreads and ratings downgrades of securities backing CDOs during Q4 adversely affected the mark-to-market valuation of the co’s insured credit derivatives portfolio. “We are disappointed in our operating results for the year, as the performance of our insured prime, second-lien mortgage portfolio and three insured CDO-squared transactions led to unprecedented loss reserving and impairment activity. The effect of these reserving and impairment activities on our capital position will be more than offset by the successful completion of our capital plan, which will increase our capital position by well over $2 billion. Significantly wider spreads and ratings downgrades of securities backing Collateralized Debt Obligations (”CDO”) during the fourth quarter adversely affected the mark-to-market valuation of the Company’s insured credit derivatives portfolio. As MBIA previously announced on January 9, 2008, the Company estimates a credit impairment of $200 mln included in the pre-tax net loss of $3.5 bln on its insured credit derivatives portfolio for three CDO-squared transactions on which the co expects to incur actual losses in the future. MBIA continues to believe that the balance of the mark-to-market losses are not predictive of future claims and, in the absence of further credit impairment, the cumulative marks should reverse over the remaining life of the insured credit derivatives. Additionally, the mark-to-market does not affect rating agency evaluations of MBIA’s capital adequacy, except to the extent of impairments.
01:44 ASX Advanced Semiconductor Engineering reports Q407 results (4.29 )

Reports Q4 (DEC) earnings of $0.10 per ADS, excluding non-recurring items, $0.05 worse than the First Call consensus of $0.15; revenues rose 28.4% y/y to NT$28.98 mln (no revenue estimates available).
01:23 SNE Sony announces Q308 results; beats on revs (47.50 )

Co announces sales and operating revenue increased 9.6% y/y to $25.08 bln vs $24.82 bln First Call consensus estimate. Operating income increased 5.8% y/y to $1.66 bln. Income before income taxes increased 60.4% y/y to $2.53 bln. Net income inceased 25.2% y/y to $1.76 bln. On a GAAP-basis, diluted EPS increased 24.8% y/y to $1.67.
01:14 SBNY Signature Bank postpones Q407 and FY07 results conference call (34.68 )

Co announces that it is delaying the issuance of its Q407 and FY07 earnings release and the related conference call. The earnings release was originally scheduled for release prior to market open on Thursday January 31, 2008; the postponement is due to a delay in the completion of procedures regarding the market value of certain asset-backed securities held in the Bank’s investment portfolio.
01:12 GSOL Global Sources issues Q407 and FY07 guidance; sees Q407 and FY07 EPS below consensus (15.38 )

Co issues mixed guidance for Q4 (Dec), sees EPS of $0.17, excluding non-recurring items, vs. $0.23 First Call consensus; sees Q4 (Dec) revs of $60.8 mln vs. $61.20 mln consensus. Co issues mixed guidance for FY07 (Dec), sees EPS of $0.54, excluding non-recurring items, vs. $0.57 consensus; sees FY07 (Dec) revs of $182.0 mln vs. $182.50 mln consensus.
00:57 WIRES On The Wires

SJW (SJW) announces that its Board approved a $0.04 per share increase in the annual dividend to $0.645 per share; record date is Feb. 11.
00:53 MC Matsushita Electric settles semiconductor patent infringement suits with Samsung

Co announces the settlement of all patent infringement suits and patent invalidation actions in the U.S. and Japan between Matsushita Electric and Samsung Electronics. As a result of the settlement, Matsushita Electric and Samsung entered into a patent cross-license agreement in the field of semiconductors and will terminate all of the pending actions between the parties.
00:51 FBN Furniture Brands reports Q4 (Dec) results, misses on revs; guides FY08 revs below consensus (9.37 )

Reports Q4 (Dec) loss of $0.60 per share, may not be comparable to the First Call consensus of ($0.02); revenues fell 11.9% year/year to $504.8 mln vs the $532.9 mln consensus. Co issues downside guidance for FY08, sees FY08 revs of $1.9-2.0 bln vs. $2.04 bln consensus; sees FY08 EPS on GAAP basis to be in the $0.40-$0.60 range.
00:40 TLGD Tollgrade misses by $0.06, misses on revs (6.46 )

Reports Q4 (Dec) earnings of $0.02 per share, excluding non-recurring items, $0.06 worse than the First Call consensus of $0.08; revenues rose 13.1% year/year to $18.8 mln vs the $19 mln consensus.
Wednesday After the Close
19:07 WRAPX After Hours Summary: AMZN -11%, SBUX -2.3% on earnings; CFC -2.8% (says remains ahead of schedule on 6-year 7,500 job commitment to Texas enterprise fund) -Update-

Companies moving in after hours trading in reaction to earnings: Trading Up: CNQR +12.8%; SMCI +8.4%; ININ +6.3%; TSCO +4.8%; ADS +4.2%; ESLR +3.8%; HRS +3.6%; CTS +2.0%; ADPT +1.8%; EXPO +1.5%; CCK +1.5%; CAI +1.5%; MLNX +1.4%; CVD +1.4%; AFL +1.3%; FNF +1.1%; PHM +1.0%… Trading Down: ARAY -29.2%; CDNS -23.4%; BLOG -19.0%; AMZN -11.1%; MTSN -8.5%; RNOW -8.4%; NEWP -4.6%; NVLS -3.5%; VIRL -3.0%; HSTX -3.0%; SBUX -2.3%; MIPS -2.2%… Companies moving in after hours trading in reaction to news: Trading Up: RFIL +10.2% (requests extension to file 10KSB; guides for Q4 EPS of $0.13 vs $0.13 in 4Q060; MMA +5.9% (completes bond refinancing); MEH +3.0% (announced U.S. Department of Justice closes investigation of pending acquisition of Midwest Air Group; transaction expected to close January 31); AMAG +3.0% (provides additional clinical information on ferumoxytol; will host conference tomorrow at 9am ET); EWST +2.6% (declares three-for-two stock split); MUR +2.4% (announces prelim Q1, guides Q4 EPS); KFED +1.7% (authorizes new stock repurchase plan to repurchase up to 10% of its common stock); CTIC +1.6% (cuts net operating expenses 35% and expands commercial team to support Zevalin sales and applications seeking two product approvals in 2009); BAS +1.5% (announces two acquisitions; acquisitions are anticipated to be accretive to earnings in 2008); EBHI +1.4% (announces a reorganization of their corporate staff; job cuts represent an aggregate of 16% of the corporate staff); CPRT +1.1% (lanelogic partners with Pep Boys to facilitate an alternative for consumers to sell their cars for cash); ABM +1.1% (announces two acquisitions; acquisitions are anticipated to be accretive to earnings in 2008)… Trading Down: CEP -4.5% (files a $1 bln mixed shelf offering in an S-3); CFC -2.8% (says remains ahead of schedule on 6-year 7,500 job commitment to Texas enterprise fund); GLAD -1.6% (prices 3 mln shelf offering at $17.00 per share); MER -1.2% (says top execs did not get bonuses for 2007 work — Reuters).