Biovail Falls After Cutting Revenue Outlook
Biovail (BVF ) shares skidded after the company cut its third-quarter earnings per share guidance to 35 cents to 45 cents, and upped the revenue to $215 million to $235 million. Biovail cited a loss of revenue and income associated with a significant in-transit shipment loss of Wellbutrin XL as a result of a traffic accident.
DOV Pharmaceuticals (DOVP ) shares fell after the company says the FDA placed the start of a Phase III pivotal trial of ocinaplon, DOV's novel anti-anxiety product candidate, on hold. The FDA requested additional safety information.
Software maker Siebel Systems (SEBL ) expects third-quarter total revenue of $320 million to $322 million, and license revenues of $109 million to $110 million. It expects a loss, including charges, to be about 12 cents (3 earnings per share, excluding charges).
SAP (SAP ) shares rose after CS First Boston reiterates outperform, saying its third-quarter forecasts for SAP are stronger than third-quarter results for Siebel (SEBL ), and that SAP is still gaining market share.
Airline stocks climbed after Bear Stearns upgraded AMR Corp. (AMR ) to outperform from peer perform, and raised earnings estimates on major airline carriers.
Robert Half International (RHI ) shares were higher, as temporary and permanent staffing companies were benefiting from a stronger than expected September U.S. employment report. S&P reiterates sell on Robert Half.
Coffee chain Starbucks (SBUX ) posted 9% higher September same-store sales, and 25% higher total sales.
ASML Holding (ASML ) shares rose after Merrill Lynch upgrades to buy from neutral.
Adtran (ADTN ) sees 41 cents to 42 cents third-quarter earnings per share on revenue of about $106 million, and 40 cents to 42 cents fourth-quarter earnings per share. Adtran cited sharply higher shipments of DSLAMS, an improving business climate in Enterprise Networks Division, and market share gains in end-user markets. S&P upgraded to hold. Deutsche Bank raised its estimates.
Mechanical and electrical construction company Emcor (EME ) sees 90 cents to $1.01 second-half 203 earnings per share on revenue of $2.25 billion to $2.35 billion. It sees $1.65 to $1.75 2003 earnings per share on revenue of $4.4 billion to $4.6 billion. Emcor says gross profits continue to be restrained.
Deutsche Bank downgraded Pope & Talbot (POP ) to sell from hold.
Brean Murray reportedly upgraded Wipro (WIT ) to buy from hold.
Agricultural equipment maker Agco (AG ) sees 17 cents to 22 cents third-quarter earnings per share, and $1.17 to $1.30 for 2003, below estimates. S&P cut the estimate, and maintains hold.
ATI Technologies (ATYT ) posted 9 cents fourth-quarter earnings per share, vs. a 15 cents loss on 71% higher revenue. ATI sees $400 million to $430 million first-quarter revenue, 32%-35% gross margins, and sequentially flat-to-marginally higher net income.
FedEx (FDX ) says employee acceptance of early retirement and severance programs at the FedEx Express unit has exceeded original estimates. As a result, FedEx now estimates pretax costs for these programs will be in the range of $380 million to $420 million in fiscal 2004.
Spectranetics (SPNC ) says the FDA's Circulatory System Devices Advisory Panel recommended non-approval of the company's Pre-Market Approval supplement for LACI (Laser Angioplasty for Critical Limb Ischemia).
Schnitzer Steel (SCHN ) posted 84 cents, vs. 12 cents, fourth-quarter earnings per share on 53% revenue rise, citing improving prices for ferrous recycled metal.
California Amplifier (CAMP ) posted 3 cents, vs. 12 cents, second-quarter earnings per share on a 12% revenue decline. It sees 7 cents to 12 cents third-quarter earnings per share on revenue of $30 million to $36 million.
Highwoods Properties (HIW ) will be added to the S&P MidCap 400 Index after the close of trade Oct. 7, replacing Overture Services, which is being acquired by Yahoo! (YHOO )