Movers: Goldman Sachs, Zions, Best Buy, La-Z-Boy, Elan
Goldman Sachs (GS) posts $4.58, vs. $4.93, a year ago, second quarter EPS on 2% lower net revenue in investment banking. Earlier, the Financial Times reports that GS is close to finalizing a plan to restructure a $7 billion investment vehicle formerly run by London-based hedge fund Cheyne Capital, a move that may usher in a crucial new phase in the credit turmoil.
Zions Bancorporation (ZION), SunTrust Banks (STI) and Huntington Bancshares (HBAN) are among banking stocks trading lower as Goldman Sachs says it remains cautious on regional banks amid credit deterioration; cuts estimates and target prices on ZION, STI, HBAN.
Mentor Graphics (MENT) rises after Cadence Design Systems (CDNS) announces an unsolicited offer to buy MENT for $16.00 per share in cash. MENT already has rejected previous talks on such a transaction.
Canadian Solar (CSIQ) raises its 2008 guidance to 230MW-260MW from 200MW-220MW in output and its estimated annual revenue to $750-$870 million from $650-$750 million. Estimates that it will ship approximately 10MW-12MW of e-Modules to USA and South Korea in 2008, thus making these two countries significant markets for CSIQ.
CME Group (CME) rises after Citigroup upgrades to buy from hold. Late yesterday CME and NYMEX Holdings (NMX) announced that they had received clearance from the U.S. Department of Justice to complete their proposed merger transaction without conditions.
Infinera (INFN) expects third quarter adjusted GAAP revenue of $75-$80 million; as result, now expects adjusted. GAAP revenue for 2008 to grow about 10% vs. previous guidance of 25% growth. Attributes quarter-to-quarter revenue decline to current indications that existing North American customer base will purchase less product in the third quarter than previously expected. Separately, announces that Deutsche Telekom has selected a new DWDM system from INFN for its pan-European network. Goldman cuts estimates, target.
Genco Shipping & Trading Ltd. (GNK) agrees to acquire six drybulk newbuildings from Lambert Navigation Ltd., Northville Navigation Ltd., Providence Navigation Ltd., and Prime Bulk Navigation Ltd., for $530 million.
Best Buy (BBY) posts $0.43, vs. $0.39, first quarter EPS on 3.7% same-store sales rise, 12% total sales rise. Reiterates $3.25-$3.40 fiscal year 2009 EPS guidance.
Chiquita Brands International (CQB) says, in an effort to clarifiscal year the 2008 outlook provided yesterday, it says assuming continued pricing and forex trends as well as current cost expectations the "significant loss" for third quarter is expected to be in line with the loss incurred during the third quarter of 2007. Notes that third quarter is traditionally a weak quarter for the company and the banana industry. Says it expects to deliver strong year-over-year improvement in operating performance for the second quarter.
La-Z-Boy (LZB) posts $0.09 fourth quarter loss from continuing operations, vs. $0.16 EPS, on 9.8% lower sales. Says overall macroeconomic factors continue to impact the home furnishings industry; believes it will be some time before the environment improves. Sees 3%-7% fiscal year 2009 sales decline, EPS of $0.15-$0.25, excluding restructuring charges, potential income from anti-dumping monies, or any further effect from discont.
ops or the write-down of intangible assets. S&P cuts estimate, keeps hold.
Elan (ELN) and Wyeth (WYE) announced encouraging preliminary findings from Phase 2 study of bapineuzumab in patients with mild to moderate Alzheimer's disease. Notes in 18-month trial, bapineuzumab appeared to have clinical activity in treating Alzheimer's disease.
Cemex (CX) expects EBITDA for second quarter to be close to $1.4 billion, an increase of about 23% vs. year ago period, while operating income is expected to be about $960 million, 19% higher than year go. Sees sales $6.4 billion, a 31% increase. Cites better-than expected performance in the South/Central America and the Caribbean, Africa and Middle East, Rest of Europe, and Asia and Australia regions.
Adobe Systems (ADBE) posts $0.50, vs. $0.37 a year ago, second quarter non-GAAP EPS on 19% revenue rise. Says second quarter performance driven by the product mix and geographic diversity of its businesses. Sees third quarter revenue of $855-$885 million and non-GAAP EPS of $0.45-$0.47.
Daimler AG (DAI) sets share buyback for 10%, or about 96.4 million of its outstanding shares, for maximum amount of €6 billion.
Ford Motor (F) announces that it will begin exporting additional automotive products and transmission parts to China, thanks to agreements signed in Washington, D.C. Total value of the pact is estimated to be more than $800 million.
Alcatel-Lucent (ALU) announces that it has signed a $1 billion framework agreement for 2008 with China Mobile (CHL) to provide mobile communication equipment and services.
Chicago Bridge & Iron (CBI) says it has been awarded a contract in excess of $40 million by Petroterminal De Panama, S.A. to engineer, fabricate and construct numerous petroleum storage tanks associated with the Trans-Panama Pipeline Expansion Project.
Perfect World (PWRD) Announces it has entered into a new licensing agreement with Cubinet Interactive(s) Pte. Ltd., an online game operator in Malaysia, to license "Chi Bi" in Vietnam, Thailand, Malaysia and Singapore.
A/S Dampskibsselskabet Torm (TRMD) says due to better than expected earnings for its product tankers in second quarter, raises 2008 forecast for profit before tax from $250-$270 million to $275-$295 million.