Movers: Deutsche Bank, Micron, Intel, ImClone
Deutsche Bank (DB) says it will take a €700 million charge on leveraged loans and loan commitments in the third quarter, and a €1.5 billion charge on structured credit products, residential mortgage-backed securities and relative value trading in both credit and equities. Despite the €2.2 billion ($3.09 billion) in charges, the German bank says its third-quarter net profit will still exceed the year-earlier figure because of tax credits and capital gains.
Micron Technology (MU) posts $0.21 fourth quarter loss per share, vs. $0.08 EPS a year ago, as lower gross margin offset 4.7% sales rise. The memory chip maker says fourth quarter and fiscal year 2007 results were heavily influenced by industry supply/demand dynamics that depressed average sellling prices (ASPs) for memory products.
Morgan Stanley initiates coverage of Intel (INTC) with underweight opinion.
Wynn Resorts (WYNN) falls after Jim Cramer said on his Oct. 2 evening program Mad Money that Wynn is a Chinese speculative name right now. It's so hot he recommends that investors be careful, and don't buy the stock.
Southwest Airlines (LUV) reports an 8.6% increase in September revenue passenger miles and 11% increase in the third quarter.
ImClone Systems (IMCL) and Bristol-Myers Squibb (BMY) announce that the U.S. Food and Drug Administration (FDA) has approved an update to the Erbitux product labeling to include overall survival data as a single agent in epidermal growth factor inhibitor (EGFR)-expressing metastatic colorectal cancer (mCRC) patients after failure of both irinotecan- and oxaliplatin-based regimens.
Nu Horizons Electronics (NUHC) plans to restate financial statements for fiscal years 2002 (February) through 2007, as well as the first quarter of fiscal year 2008 due to a material understatement of its provision for income taxes for prior periods and the related U.S. income tax obligations.
Panera Bread (PNRA) narrows third quarter EPS guidance to $0.35-$0.37 from $0.32-$0.38 on a reported 35% rise in revenue. The restaurant chain says system-wide sales rose 0.8% in September at its bakery-cafes open at least 18 months.
P.F. Chang's China Bistro (PFCB) posts 1.6% Q3 same-store sales decline at Bistro, 1.0% decline at Pei Wei, 17% total sales rise. It sees $0.05-$0.07 third quarter EPS, below its previously released forecast of $0.25.
Midway Games (MWY) widens $0.23 third quarter loss (GAAP) estimate to $0.33 on lower-than-expected revenue of $39 million. For 2007, it now sees $0.85 loss on revenue of about $170 million. It cites the delayed release of Stranglehold and Unreal Tournament 3, and lower expected sales of BlackSite: Area 51.
Wolverine World Wide (WWW) posts $0.54, vs. $0.46 a year ago, third quarter EPS on 3.8% higher revenue. It raises 2007 EPS guidance to $1.63-$1.65 from $1.60-$1.64 based on strong third quarter performance and current backlog, although still sees revenue at low end of previously announced range of $1.20-$1.23 billion. It forecasts $1.78-$1.84 2008 EPS on revenue of $1.245-$1.275 billion.
American Superconductor (AMSC) says it has signed two licensing contracts with AAER Inc., a Canadian wind turbine manufacturer. Under the terms of the contracts, AMSC's wholly owned Windtec subsidiary will license to AAER the design for its WT-2000sg, a proprietary 2 megawatt (MW) wind turbine. In addition to multi-million dollar upfront license fees, AMSC will receive royalties for every WT-2000sg wind turbine commissioned by AAER.