Yum Brands Raises Guidance

Wendy's says gas prices and hurricanes hit its sales; Delphi reportedly prepared to file for bankruptcy; plus more of Wednesday's stocks in the news

Yum Brands (YUM ) posted 72 cents vs. 61 cents third quarter earnings per share on 2.9% higher revenue. The company raised its 2005 earnings per share guidance to $2.64, excluding special items.

Wendy's (WEN ) posted 5% lower third quarter (preliminary) same-store sales and said sales at all its brands were impacted by record high gasoline prices, lower consumer spending levels, and store closings from hurricanes.

P.F. Chang's (PFCB ) shares rose Wednesday. The company posted 0.8% lower Bistro same-store sales, 2.8% higher sales at Pei Wei units, and 17% higher total revenues. Raymond James believes there were widespread trading accounts shorting the stock, but its results exceeded disappointing scenarios.

Delphi (DPH ) is prepared to file for bankruptcy as early as this week, lining up lawyers and consultants in preparation for what would be the domestic auto industry's largest filing in recent times, according to the New York Times.

ADC Telecommunications (ADCT ) said it sees fourth quarter sales of $290 million to $300 million (including certain sales), and 15 cents to 19 cents fourth quarter GAAP earnings per share from continuing operations. The company cited lower demand for certain products, lower-than-expected sales in amplifiers, and services to wireless customers.

Freddie Mac (FRE ) said that preliminarily estimates of its third quarter after-tax losses due to Hurricanes Katrina and Rita are at $150 million to $300 million.

Nanometrics (NANO ) cut its third quarter revenue guidance to $14 million. The company says the shortfall is related to units that had shipped and were undergoing installation during the quarter, but had not yet obtained final acceptance.

Banc of America downgraded Harley-Davidson (HDI ) to sell from neutral and cut its target on the stock to $36.

Material Science (MSC ) potponed its Oct. 6 second quarter results report in order to further review its accounting for income taxes.

Select Comfort (SCSS ) said it was notified by one supplier about the delivery delay of materials used to manufacture foam for mattresses and furniture products due to recent hurricanes. The company said it may result in delivery delays for some customers.

Olin (OLN ) rised its 40 cents third quarter earnings per share forecast to 43 cents due to a $15 million pretax gain primarily associated with the recovery of environmental expenses incurred and expensed in prior periods.

Quanta Capital (QNTA ) said its total estimated retained net losses from hurricanes Katrina and Rita is expected to be $40 million to $50 million, and $2 million to $8 million, respectively.

Praxair (PX ) epects combined impacts of Hurricanes Katrina and Rita to reduce operating profit by $15 million to $18 million, or about 4 cents per share in the third quarter.

Human Genome Sciences (HGSI ) said that overall primary efficacy endpoints were not met in a Phase 2 trial of LymphoStat-B in patients with systemic lupus erythematosus.

MIPS Technologies(MIPS ) said it sees $11.8 million to $12.0 million first quarter revenue, noting disappointing contract revenue shortfall.

LA-Z Boy (LZB ) said one key supplier of polyurethane foam has put it on notice of allocation. Also, the soft retail environment, as well as damage to one of its plants by tornado will have a significant adverse impact on the second quarter and potentially beyond.

NutriSystem (NTRI ) raised its $41 million to $43 million third quarter revenue guidance to $64 million to $65 million.

Wright Medical Group (WMGI ) said it sees 10 cents to 11 cents third quarter earnings per share. The company said it did not meet expectations for recovery in domestic biologics growth and international business in Italy; southern France did not recover as expected. Wright sees $315 million to $318 million 2005 sales, and 66 cents to 70 cents earnings per share.

Motive (MOTV ) said it sees 20 cents to 27 cents third quarter GAAP loss on $15.5 million to $17.5 million revenue. The company no longer expects to achieve 2005 revenue and earnings per share guidance. It is reviewing options on its enterprise business.

Mercury Interactive (MERQE ) cut its $205 million to $215 million third quarter revenue guidance to $198 million to $203 million, and sees third quarter GAAP results at or slightly below the low end of its forecasted range. The company cited delayed timing of several large transactions and continued transition in Europe.

GoAmerica (GOAM ) said its relay service is available through AOL Instant Messenger (AIM) service, providing an enhanced relay calling experience for relay calls placed through AIM.

P.F. Chang's China Bistro (PFCB ) said its third quarter revenues increased 17% to $203 million, with its China Bistro units accounting for a significant portion of revenues.

BE Aerospace (BEAV ) said it sees $1.10 2006 earnings per share on about $1 billion revenue. The company says it has experienced robust demand from major international carriers including significant new awards for BE's premium class products.

OM Group (OMG ) said it believes the second half will not be as strong as anticipated due primarily to lower nickel production resulting from raw material shipments delayed until early next year. The company cut its $2.00 to $2.40 2005 earnings per share forecast to $1.40 to $1.60.

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