Movers: Citigroup, Medtronic, Tektronix, Biogen Idec
Citigroup (C) posts third quarter EPS of $0.47, vs. $1.10 a year ago, as fixed income results and higher credit costs in global consumer offset 5.8% revenue rise.
Medtronic (MDT) voluntarily suspends worldwide distribution of the Sprint Fidelis family of defibrillation leads because of the potential for lead fractures. In addition, the company recommends against new implants of the leads.
Danaher (DHR) agrees to acquire Tektronix (TEK) in a $2.8 billion deal, including debt, transaction costs and net of cash acquired. Terms: $38 cash per TEK share.
Biogen Idec (BIIB) says it is evaluating whether third parties would have an interest in acquiring the company at a price and on terms that would represent a better value for its stockholders than having the company continue to execute its strategy on a stand-alone basis.
Elan (ELN), noting the announcement from Biogen that it received expressions of interest from third parties, says it has a 50% interest in the Tysabri collaboration with Biogen. Under terms of collaboration agreement, if a third party acquires control of Biogen, Elan has several options.
Mattel (MAT) posts third quarter EPS of $0.61, vs. $0.62 a year ago, as charges and incremental costs of about $40 million related to product recalls offset 3% revenue rise. S&P lowers 2007 estimate, maintains strong buy.
Charles Schwab (SCHW) posts second quarter EPS from continuing operations of $0.27, vs. $0.18 a year ago, on a 21% revenue rise. It says third quarter net new assets rose 66%.
Washington Group International (WNG) sees $1.25-$1.38 third quarter EPS (excluding cost associated with merger proposed merger with URS) on revenue of about $1.1 billion. It cites recent contract awards in Power and Industrial/Process business units converting to revenue. It raises 2007 EPS view to $3.06-$3.39, from $2.60-$2.92.
W.W. Grainger (GWW) posts third quarter EPS of $1.29, vs. $1.16 a year ago, on 9.2% higher sales. It raises 2007 EPS guidance to $4.85-$4.95 from $4.75-$4.90.
Shares of the drilling-equipment supplier National Oilwell Varco (NOV) are up 189% in the past 12 months, compared with about 15% for the S&P 500 index. The Houston company has profited from a dominant position providing equipment to oil and gas drillers, who are enjoying a historic boom. The biggest of its three businesses supplies a wide variety of items that go on land-based and offshore rigs, as well as "floaters" -- semi-submersible rigs -- and ships that replicate the drilling conditions on land, according to Barron's.
Teleflex (TFX) agrees to sell its business units that design, manufacture automotive and industrial driver controls, motion systems, fluid handling systems to Kongsberg Automotive Holding ASA, in cash deal valued at $560 million.