Movers: Nortel, Yahoo, ADM, Sun Microsystems

Tuesday's stocks in the news

Nortel Networks (NT) posts $0.05 third quarter EPS, vs. $0.14 loss a year ago, despite 8% revenue drop. Excluding the impact of UMTS Access divestiture, it says revenue decreased 2%.

Yahoo (YHOO) falls as S&P says recent excitement about the Alibaba IPO has helped propel Yahoo shares in recent weeks. S&P notes YHOO's stake in Alibaba is worth more than its interest in Yahoo Japan, and views this as notable. But, despite a clearer and more focused business strategy, S&P still believes YHOO faces significant fundamental challenges, sees shares as overvalued, and reiterates sell.

Archer-Daniels-Midland (ADM) posts $0.68, vs. $0.61 a year ago, first quarter EPS on 36% rise in net sales and other operating income.

Sun Microsystems (JAVA) posts $0.03 first quarter GAAP EPS, vs. $0.02 loss a year ago, on slight revenue rise, gross margin improvement. S&P maintains buy. Citigroup reportedly upgrades to buy from sell.

Lear (LEA) posts $0.52 third quarter EPS, vs. $1.10 loss a year ago, despite 12% lower sales. It expects 2007 core operating EPS in the range of $680 million, excluding results for divested Interior business. For 2008, forecast net sales, core operating EPS, excluding restructuring-related costs, roughly in line with 2007 outlook.

Beazer Homes USA (BZH) says it plans to take a $230 million fourth quarter non-cash pre-tax charge to abandon land option contracts, to recognize inventory impairments and to record impairments and land-option abandonments in joint ventures. Also says it currently is in the process of evaluating the recoverability of its goodwill, which may result in impairment charges. Suspends quarterly dividend. S&P keeps hold.

Warnaco Group (WRNC) posts $0.10, vs. $0.31 a year ago, third quarter GAAP EPS as restructuring expenses and problems within its swimwear group offset a 13% rise in sales. However, it boosts its 2007 guidance, saying it now expects adjusted EPS (excluding businesses expected to be discontinued in 2008 and restructuring expenses) in the range of $2.10-$2.18, vs. its former view of $1.90-$2.00. Also says it is exploring strategic alternatives for its Lejaby unit, a French brand of intimate apparel and swimwear, including a potential sale.

Novatel Wireless (NVTL) posts $0.28 third quarter EPS, vs. $0.03 loss per share a year ago, on 90% revenue rise. JP Morgan believes NVTL's multiple is not justified, maintains underweight. S&P keeps buy.

Magna International (MGA) posts $1.38, vs. $0.86 a year ago, third quarter EPS on 12% revenue rise. It sees 2007 consolidated sales of $25.0-$26.3 billion. Board okays buyback of up to 9.5 million Class A shares.

Momenta Pharmaceuticals (MNTA) announces that its collaboration partner, Sandoz Inc., a division of Novartis, had received a letter from FDA on Nov. 5, stating that Sandoz' abbreviated new drug application (ANDA) for Enoxaparin Sodium Injection is not approvable because the application does not adequately address the potential for immunogenicity of the drug product.

Ambac Financial Group (ABK) says it posted on its website a response to Morgan Stanley analyst report issued on Nov. 2. Amongst other points made in rebuttal, the company addresses why loss estimates presented in report do not accurately reflect composition of its underlying mortgage portfolio, structure of ABK's deals.

It says the company, in further disputing report's conclusions underscored its internal credit ratings process, its transparency to financial community regarding its direct mortgage and CDO exposures.

Cognizant Technology Solutions (CTSH) posts $0.32, vs. $0.20 a year ago, third quarter GAAP EPS on 48% revenue rise. It sees $590-$595 million fourth quarter revenue, $0.31 GAAP EPS; sees $2.125-$2.13 billion 2007 revenue, $1.14 GAAP EPS. Its fourth quarter revenue forecast \is seen below Street views.

First Solar (FSLR) inks long term module supply agreements with a unit of Australia's Babcock & Brown, and a unit of Econcern BV of the Netherlands. Says new agreements expand contracted module volume by a total of 557MW, allowing for additional sales of approximately $1 billion billion over the period of 2008 to 2012.

Guess? (GES) says based on the recent trends and its forecast for the fourth quarter, it raises its guidance for fiscal year 2008 EPS to $1.85-$1.90, from previous guidance of $1.79-$1.84.

Cooper Tire & Rubber (CTB) posts $0.28 third quarter EPS from continuing operations, vs. $0.38 loss a year ago, on 11% revenue rise. Its results are seen below estimates.

Career Education (CECO) posts $0.21, vs. $0.28 a year ago, third quarter EPS from continuing operations on 5.6% revenue decline.

Comstock Resources (CRK) Up 4.43 to 38.90 Posts better-than-expected $0.37 vs. $0.39 third quarter EPS as higher operating costs offset 32% higher oil and gas sales. KeyBanc upgrades to buy from hold.

Activision (ATVI) posts better-than-expected $0.02 second quarter non-GAAP EPS vs. $0.08 loss on 69% revenue rise. It raises fiscal year 2008 net revenue, EPS guidance to $2.07 billion, $0.65 (excluding equity-based compensation expense), respectively. S&P raises estimate, target, maintains hold.

Church & Dwight (CHD) posts $0.75, vs. $0.57 a year ago, third quarter EPS on 12% revenue rise. Due to solid performance to date this year, positive impact of new product launches, successful integration of its OGI biz, it raises $2.34-$2.36 2007 EPS guidance to $2.42-$2.44 (including gain on property sale).

Lifetime Brands (LCUT) posts lower-than-expected $0.47, vs. $0.45 a year ago, third quarter EPS on 1.3% revenue rise. It scales back forecasts, now sees $500-$515 million fourth quarter sales, $1.10-$1.20 EPS.

Emerson Electric (EMR) posts $0.78, vs. $0.65 a year ago, fourth quarter EPS on 11% sales rise. It expects reported sales growth of 7%-10% for fiscal year 2008, EPS growth of 10%-15%. It raises $0.2625 quarterly dividend 14% to $0.30.

    Before it's here, it's on the Bloomberg Terminal.