06/19/13 04:07:32 PM
Movers: ADOBE SYSTEMS INC., VANDA PHARMACEUTICALS, INC., TETRA TECH INC.
ADOBE SYSTEMS INC.(ADBE) : ADBE posts $0.36 vs. $0.60 Q2 non-GAAP EPS on 10% revenue drop. Capital IQ consensus forecast was $0.34. S&P Capital IQ maintains strong sell. BoA/Merrill upgrades to buy from neutral.
VANDA PHARMACEUTICALS, INC.(VNDA) : The Street says "Dig into the company's clinical work on tasimelteon, however, and you'll find a disturbingly large number of irregularities and red flags which should ring alarm bells for any investor betting on the drug's approval." Yesterday, VNDA presented addl data demonstrating that tasimelteon can entrain (synchronize) both melatonin and cortisol rythms. Lazard says buy on weakness.
TETRA TECH INC.(TTEK) : TTEK now expects Q3 revenue, net of subcontractor costs, in the range of $440M-$490M, and based on these charges, now expects a loss per share in the range of $0.30-$0.50. Says updated outlook reflects increased restructuring costs resulting from the previously announced weakness in Eastern Canada and mining, and new findings on certain project claims. In addition, sets $100 million stock buyback. Brean Capital downgrades to hold from buy.
KERYX BIOPHARMACEUTICALS INC.(KERX) : JP Morgan initiates coverage of KERX with overweight. Co notes analyst comments.
RESEARCH IN MOTION LIMITED(BBRY) : Bernstein downgrades BBRY to underperform from market perform. Co. unavailable.
NOVA MEASURING INSTRUMENTS LTD.(NVMI) : NVMI says Gabi Seligsohn, president and chief executive officer, informed the board of his decision to step down from his position and he will be replaced by Eitan Oppenhaim, effective July 31. Oppenhaim is executive vice president of NVMI's global business group. Needham says CEO change surprising but unlikely an indication of problems; reiterates buy.
VITESSE SEMICONDUCTOR CORP.(VTSS) : VTSS says it is offering to sell shares of its common stock in an underwritten public offering in an amount of ~$30M (excluding any exercise of a 15% over-allotment option to be granted to the underwriters). Needham & Co. LLC is acting as the sole bookrunning manager of the offering, which is expected to price after the close of trading on Wednesday, June 19. VTSS intends to use the net proceeds from the offering for working capital and general corporate purposes.
AV HOMES, INC(AVHI) : AVHI says TPG, a global private investment firm, has agreed to make a $135M investment in AVHI at a price of $14.65 per share, which represents a 9.6% premium to the 30-day trailing average closing price of AVHI's common stock. AVHI notes it will use the proceeds to accelerate the implementation of its growth plan in its existing and new high-potential housing markets. In addition. AVHI says it has adopted a shareholder rights plan effective today.
POOL CORP.(POOL) : POOL lowers '13 EPS guidance range to $2.03-$2.13. Capital IQ consensus forecast is $2.15. Says it experienced cooler and wetter than normal conditions, resulting in later pool openings and reduced consumer purchases. Says it expects a disproportionately greater impact on Q2 results compared to Q3 and Q4. William Blair cuts estimates, maintains market perform.
BIODEL INC.(BIOD) : BIOD announces the pricing of an underwritten public offering of 4,482,760 common shares at a public offering price of $4.35 per share. All of the shares are being sold by BIOD. The offering is expected to close on June 24, subject to customary closing conditions. BIOD has also granted the underwriters a 30-day option to buy up to another 672,414 shares to cover overallotments, if any.
NEKTAR THERAPEUTICS(NKTR) : NKTR announces positive top-line results from a human abuse liability (HAL) study for NKTR-181, a first-in-class, opioid analgesic molecule with a slow rate of entry into the brain. Says this slow rate of entry is designed to reduce the euphoria that can lead to the abuse of and addiction to current opioid analgesics.
FEDEX CORPORATION(FDX) : FDX posts $2.13 vs. $0.95 Q4 EPS (excl. charges) on flat revenue. Says it posted another strong year and FedEx freight margins continued to improve, but these positive developments did not fully offset tepid economic growth and customer preference for less costly international shipping services. For FY 14, expects EPS growth of 7%-13% from FY 13 adj. results, assuming current market outlook for fuel prices, U.S. GDP growth of 2.3% and world GDP growth of 2.7%.
SAREPTA THERAPEUTICS, INC.(SRPT) : SRPT announces updated data from Study 202, a Ph. IIb open-label extension study of eteplirsen in patients with Duchenne muscular dystrophy (DMD). Notes results at 84 weeks showed a continued stabilization of walking ability in eteplirsen-treated patients evaluable on the 6-minute walk test (6MWT). Baird reiterates outperform.
VIVUS INC.(VVUS) : VIVUS announces positive results from a multicenter, placebo-controlled study, TA-501, designed to assess the efficacy of Stendra (avanafil) in approximately 15 minutes. In the study, Stendra patients achieved statistically significant improvement over placebo, in the mean proportion of attempts that resulted in erections sufficient for successful intercourse, as early as 10 minutes for the 200 mg dose and 12 minutes for the 100 mg dose after being taken.
LA-Z-BOY INCORPORATED(LZB) : LZB posts $0.33 vs. $0.37 Q4 GAAP EPS as higher expenses offset 11% rise in same-store sales, 9.8% rise in consolidated sales. Q4 FY 13 EPS included a $0.03 benefit due mainly to foreign and state taxes. Q4 FY 12 EPS included $0.19 of income related to anti-dumping duties. S&P Capital IQ maintains hold.
SPRINT NEXTEL CORP.(S) : DISH NETWORKS announces it will not submit a new offer for S. S&P Capital IQ believes this paves the way for a deal close between Softbank and S by the end of June. Maintains hold recommendation on the shares of S.