Movers: Citi, Black & Decker, Novell, Schwab
CITIGROUP INC. (C)
Down 0.59 to 30.42
Citi announces that it will consolidate $49 billion in Citi-advised Structured Investment Vehicles' (SIVs) assets and liabilities onto its balance sheet under applicable accounting rules. Moody's Investors Service downgrades ratings on Citi debt to Aa3, stating it doubted that Citi could rebuild its capital ratios any time soon. S&P Equity Research maintains hold on the shares. Sandler O'Neil downgrades to hold from buy.
BLACK & DECKER CORP. (THE) (BDK)
Down 6.14 to 73.99
Expects to recall certain DEWALT XRP cordless drills, incur a pre-tax charge of $25 million in the fourth quarter. The company says business conditions in North America have been worse than it anticipated. Also notes it reached deal with U.S. government on outstanding income tax litigation, expects to make cash payments of $50 million in 2008. Sees $3.39 fourth-quarter EPS, $8.27 2007 EPS; excl. favorable effect of tax, sees fourth-quarter EPS of $1.03, $6.00 for 2007. S&P cuts target, maintains hold.
RIGEL PHARMACEUTICALS, INC. (RIGL)
Up 3.97 to 29.92
Lehman reportedly upgrades to overweight from equal-weight. Yesterday co. said its oral syk kinase inhibitor, R788 (tamatinibfosdium), has demonstrated statistically significant results in treating Rheumatoid Arthritis patients in a recently completed Phase 2 clinical trial.
BIOMARIN PHARMACEUTICAL INC. (BMRN)
Up 6.38 to 36.14
In an 8-K filing, the company says it expects 2008 Kuvan revenue to be in the range of $35-$70 million. The company says this follows yesterday's news that FDA has granted marketing approval for Kuvan (sapropterin dihydrochloride) Tablets, the first specific drug therapy approved for the treatment of phenylketonuria.
QUIKSILVER, INC. (ZQK)
Down 0.87 to 9.30
Quiksilver posted 51 cents vs. 51 cents fourth-quarter EPS (pro forma) despite 6% revenue rise. Sees fiscal 2008 revenue of $2.7 billion, EPS of approximately 70 cents; expects about $600 million first quarter revenue, "small" loss, reflecting effects of a challenging winter equipment market. S&P cuts estimate, target. Citigroup cuts estimates, target.
NOVELL, INC. (NOVL)
Down 0.33 to 6.77
The company posted a 5 cents fourth-quarter GAAP loss per share vs. 5 cents EPS as higher expenses offset 4.7% revenue rise. Sees fiscal 08 revenue of $920-$945 million; non-GAAP adjusted operating margin is expected to be between 7%-9%. Expects to record additional $15-$25 million in restructuring costs. S&P, Citigroup maintain hold.
SCOTTS MIRACLE-GRO CO. (THE) (SMG)
Down 0.81 to 36.66
Expects adjusted 2008 EPS, excluding restructuring and other one-time charges, to be flat from the previous year on company-wide sales rise of 5%-7%. S&P reiterates sell.
NEUROCRINE BIOSCIENCES, INC. (NBIX)
Down 0.70 to 4.55
Bear Stearns downgrades to underperform from peer perform. Yesterday Neurocrine announced receipt of approvable letter from FDA for indiplon.
LEAP WIRELESS INTERNATIONAL, INC. (LEAP)
Up 3.43 to 37.57
Leap posted a 64 cents third quarter loss per share vs. a one cent loss as increases in net interest and income tax expenses offset 40% revenue rise. Excluding items, Leap would have reported third quarter loss of 10 cents, which is narrower than 15 cents loss consensus. Late yesterday Harbert Management Corp. boosted its stake in Leap to 12.3%. S&P maintains hold. Bear Stearns reiterates outperform.
SCHWAB (CHARLES) CORP. (SCHW)
Up 0.66 to 24.83
Reports client daily average trades in November were up 36% from year-ago, 8% from prior quarter. The company says net new assets brought to the co. by new and existing clients in November 2007 totaled $12.1 billion, total client assets were $1.446 trillion as of month-end Nov., up 18% from a year ago, down 3% from the prior month.
DTE ENERGY CO. (DTE)
Down 1.20 to 47.36
DTE sees $2.70-$3.10 2008 operating EPS, reaffirms $2.50-$2.65 2007 operating EPS guidance, excluding synthetic fuels.
QWEST COMMUNICATIONS INTERNATIONAL INC. (Q)
Up 0.24 to 7.20
Announces that its board of directors declared a quarterly dividend of 8 cents per share. Qwest last issued a dividend in June 2001.
TRINITY INDUSTRIES, INC. (TRN)
Up 0.57 to 27.60
Sets $200 million stock buyback.
TAUBMAN CENTERS, INC. (TCO)
Down 0.65 to 52.08
Expects 2007 funds from operations (FFO) per share to be at the upper end of its previously announced range of $2.83-$2.87. For 2008, expects FFO will be in the range of $3.04-$3.09.
EVERGREEN SOLAR, INC. (ESLR)
Up 1.65 to 16.76
Signs 10-year polysilicon supply agreement with Silicium de Provence S.A.S. (Silpro) with shipments beginning in mid 2010.
ISIS PHARMACEUTICALS, INC. (ISIS)
Down 0.16 to 16.88
Names B. Lynne Parshall, J.D. to additional position of chief operating officer, effective immediately. The company says Ms. Parshall retains her position as chief financial officer, and is a director of the company.
CHINA SUNERGY CO., LTD. (CSUN)
Up 1.75 to 11.30
Enters into a supply agreement with asola Advanced and Automotive Solar System GmbH, a German module manufacturing co., whereby China Sunergy will supply a total volume of 10.2MW of solar cells to asola during 2008.