Morning Movers 1/13: ZymoGenetics (ZGEN) Up On Bristol-Myers Deal; Lexmark (LXK) Down On Guidance

January 13, 2009 10:02 AM EST

StreetInsider.com Morning Movers:

Targanta Therapeutics (Nasdaq: TARG) 104% HIGHER; Medicines Company (Nasdaq: MDCO) to acquire Targanta for $2.00 per share in cash. Targanta shareholders may also be entitled to receive additional contingent cash payments upon the achievement of specified regulatory and commercial milestones within agreed upon time periods.

ZymoGenetics, Inc. (Nasdaq: ZGEN) 28% HIGHER; Bristol-Myers Squibb Company (NYSE: BMY) and ZymoGenetics announced a global collaboration for PEG-Interferon lambda, a novel type 3 interferon currently in Phase Ib development for the treatment of Hepatitis C, and its related development program. Click here for the full report.

Prestige Brands Holdings, Inc. (NYSE: PBH) 20% LOWER; said revenues for the fiscal 2009 third quarter are expected to be essentially even with the prior year comparable quarter. Last year, revenues were $80.22 million and the consensus for this year is $82.6 million. The company cited a slowing retail environment and trade inventory reductions. Due to the flat revenues and increased advertising investment behind key brands, the company anticipates EPS for the quarter to be $0.01 to $0.02 below the previous year's quarter. Last year, EPS was $0.17 and the consensus this year is $0.20.

FuelCell Energy Inc. (Nasdaq: FCEL) 15% HIGHER; Awarded $30.2 Million Contract to Further Develop Clean Coal-Based Power Plant in Phase II of Energy Department Program

Cepheid (Nasdaq: CPHD) 10% LOWER; said total revenue for the fourth quarter of 2008 is expected to be approximately $38 million, with total product revenue of approximately $36 million. The Wall Street consensus is $42.6 million. Total revenue for the full year ended December 31, 2008 is expected to be approximately $170 million, with total product revenue of approximately $159 million. The Wall Street consensus is $174.4 million.

Atmel Corp. (Nasdaq: ATML) 8% HIGHER; Goldman starts at Buy

Lexmark International, Inc. (NYSE: LXK) 8% LOWER; lowers Q4 guidance. Lexmark currently expects its fourth quarter revenue to decline about 17 percent year over year. As compared to the company's October 2008 fourth quarter guidance of a revenue decline in the low to mid teens range, revenue has been negatively impacted by lower laser and inkjet hardware unit sales and currency rate shifts during the quarter. Lexmark said EPS. excluding restructuring related charges. are now expected to be $0.71 to $0.76 with the lower operating income impact being offset by the tax benefit. This compares to the October 2008 guidance range for EPS excluding restructuring of $0.70 to $0.80. The Wall Street consensus is $0.81. For Q1, Lexmark currently expects a revenue decline in the mid to high teens percentage range, and GAAP earnings per share to be around $0.52 to $0.62, or $0.65 to $0.75 excluding $0.13 restructuring related charges. The Wall Street EPS consensus is $0.73.

Parlux Fragrances, Inc. (NASDAQ: PARL) 7% LOWER; reports preliminary Q3 sales of $47.3 million, versus the Street estimate of $55.30 million.

Elan Corporation, plc (NYSE: ELN) 6% HIGHER; said its Board of Directors has engaged Citigroup Global Markets Inc. to conduct, in conjunction with executive management and other external advisors, a review of the Company's strategic alternatives.

Liz Claiborne Inc. (NYSE: LIZ) 6% HIGHER; completes amendment and extension of revolving credit facility. Liz also cut its forecast.

Silver Wheaton Corp. (NYSE: SLW) 5% HIGHER; UBS upgrades to Buy

Citi (NYSE: C) 4% LOWER; confirmed that the company is in discussions with Morgan Stanley (NYSE: MS) concerning a possible combination of the retail brokerage business operated under the Smith Barney name and the wealth management business operated by Morgan Stanley. Citi said no definitive agreement has been reached, and no assurance can be given that any such agreement will be reached. Beyond this statement, Citi has no further comment at this time.

First Solar, Inc. (Nasdaq: FSLR) 3.7% LOWER; Citi downgrades to Hold

Alcoa (NYSE: AA) 3.7% LOWER; reports Q4 loss of $0.28, ex-items, 18 cents worse than the analyst estimate of ($0.10). Revenue for the quarter was $5.7 billion, versus the consensus of $5.26 billion.

Newell Rubbermaid Inc. (NYSE: NWL) 3% LOWER; Merrill Lynch downgrades to Neutral

PAREXEL (Nasdaq: PRXL) 2.3% LOWER; cuts its Q2 and FY09 guidance. Click here for the full report.

NVIDIA Corporation (Nasdaq: NVDA) 2% HIGHER; revised its revenue guidance for its fourth quarter. Revenue for the fourth quarter of fiscal 2009 is expected to be lower than guidance provided during its third quarter fiscal 2009 financial conference call held November 6, 2008. Total revenue for the fourth quarter of fiscal 2009 is now expected to decline 40 percent to 50 percent sequentially as a result of further weakness in end-user demand and inventory reductions by NVIDIA's channel partners in the global PC supply chain.

SAP AG (NYSE: SAP) 2% HIGHER; Merrill Lynch upgrades to Buy

Humana (NYSE: HUM) 2% HIGHER; intends to reaffirm its previously issued FY08 EPS guidance of $3.80-$3.90, versus the consensus of $4.28. For FY09, Humana backs its prior guidance of $5.90-$6.10, versus the Street estimate of $5.92.

KLA-Tencor Corporation (NASDAQ: KLAC) 2% LOWER; sees Q2 revenue $390 - $400 million, below the consensus of $415.66 million. Click here for the full report.

Deere & Co. (NYSE: DE) 1.6% LOWER; JP Morgan downgrades to Neutral

Ericsson (Nasdaq: ERIC) 1.6% LOWER; UBS downgrades to Sell

Seagate Technology (NYSE: STX) 1% LOWER; Collins Stewart downgrades to Sell

CSX Corporation (NYSE: CSX) 1% LOWER; reports preliminary Q4 EPS of $0.90, ex-items, versus the consensus of $0.98. Overall revenues are expected to be about $2.7 billion in Q4, up 4% from the same period last year, and compared to the Street estimate of $2.77 billion.

Wells Fargo & Company (NYSE: WFC) 1% LOWER; Argus downgrades

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