Morning Movers 10/22: Coventry Health (CVH) Sinks On Results, SanDisk (SNDK) Down After Offer Pulled; Apple (AAPL) Higher On EPS

October 22, 2008 9:21 AM EDT

StreetInsider.com Morning Movers:

ICO Global Communications Limited (NASDAQ: ICOG) 100% HIGHER; was awarded at least $371 million in its litigation with The Boeing Company (NYSE: BA) and Boeing Satellite Systems International.

Dynavax (NASDAQ: DVAX) 40% LOWER; The FDA has advised Dynavax and Merck that the balance of risk versus potential benefit no longer favors continued clinical evaluation of HEPLISAV in healthy adults and children. The FDA has also advised the companies that there may be potential for an acceptable risk versus benefit profile for HEPLISAV in patients with renal failure, and requested additional information from the companies before considering further pursuit of clinical studies in those patients. Dynavax and Merck are evaluating the FDA's response in considering next steps. In the meantime, the clinical hold on the two U.S. IND Applications for HEPLISAV remains in effect.

Coventry Health Care, Inc. (NYSE: CVH) 32% LOWER; reports Q3 EPS of $0.58, which may not compare to the analyst estimate of $1.06. Revenues for the quarter were $2.98 billion, versus the consensus of $3.03 billion. Sees Q4 sales of about $3 billion and GAAP EPS of $0.60-$0.62, including $0.02 of additional interest expense. The Street is expecting sales of $3.08 billion.

SanDisk Corporation (NASDAQ: SNDK) 28% LOWER; Samsung Electronics has withdrawn its proposal to acquire all of the outstanding shares of SanDisk for $26 per share in cash.

VMware (NYSE: VMW) 13% HIGHER; reports Q3 EPS of $0.24, ex-items, versus the consensus of $0.20. Revenues came in at $472 million, versus the consensus of $462.7 million. VMware maintains revenue growth range, but sees revenue at the low end of that range. 

Sigma-Aldrich Corporation (Nasdaq: SIAL) 10% LOWER; reports Q3 EPS of $0.64, 1 cent worse than the analyst estimate of $0.65. Revenues for the quarter were $540.6 million, versus the consensus of $564.06 million. Management reaffirmed its full year 2008 diluted EPS expectation in the range of $2.62 to $2.72 vs. consensus of $2.68.

The Medicines Company (NASDAQ: MDCO) 9% LOWER; reports a Q3 loss of $0.25, which does not compare to the analyst estimate of $0.02. Non-GAAP EPS were $0.16. Revenues for the quarter were $88.1 million, versus the consensus of $87.89 million. Raises its FY08 sales guidance from $335-$355 million to $340-$360 million, versus the consensus of $347.60 million. Non-GAAP EPS lowered from $0.77-$0.92 to $0.68-$0.83.

Broadcom (Nasdaq: BRCM) 8% HIGHER; reports Q3 EPS of $0.31, versus the analyst estimate of $0.44. Revenues for the quarter were $1.298 billion, versus the consensus of $1.27 billion.

Apple Inc. (Nasdaq: AAPL) 8% HIGHER; Reported better than expected Q4 earnings, although sales were below the consensus. Apple's guidance, which is normally conservative, was very conservative, but investors seem to be blowing this off and focusing on the fact that the stock is down over 40% from last quarter. Apple reported Q4 EPS of $1.26, 15 cents better than the analyst estimate of $1.11. Revenues for the quarter were $7.9 billion, versus the consensus of $8.05 billion. Apple shipped 2.61 million Mac in the quarter, versus the Street consensus of about 2.7 million Macs. Apple sold 11.05 million iPod units during the quarter, versus the Street consensus of 10.8 million. Apple sees Q1 EPS of $1.06-$1.35, versus the consensus of $1.65. The company sees Q1 revenues of $9-$10 billion, versus the consensus of $10.57 billion.

Cerner Corporation (Nasdaq: CERN) 8% HIGHER; reports Q3 EPS of $0.54, 2 cents worse than the analyst estimate of $0.56. Revenues for the quarter were $422.7 million, versus the consensus of $420.82 million. Sees Q4 EPS of $0.58-$0.64, versus the consensus of $0.64. Sees Q4 revs of $410-$440 million, versus the consensus of $453.05 million.

EMC Corp (NYSE: EMC) 7% LOWER; reports Q4 EPS of $0.20, versus the consensus of $0.20. Revenues came in at $4 billion, versus the consensus of $4.16 billion. EMC sees Q4 EPS of $0.23-$0.24, versus the consensus of $0.24.

United States Steel (NYSE: X) 7% LOWER; Goldman downgrades to Sell, adds to Sell list

Carter's, Inc. (NYSE: CRI) 6% HIGHER; reports Q3 EPS of $0.60 (Excluding the distribution facility write-down charge of $0.02), 14 cents better than the analyst estimate of $0.46. Revenues for the quarter were $436.4 million, versus the consensus of $410.88 million.

QLogic (Nasdaq: QLGC) 6% HIGHER; reports Q2 EPS of $0.34, 3 cents better than the analyst estimate of $0.31. Revenues for the quarter were $171.2 million, versus the consensus of $169.80 million.

Cree Inc. (Nasdaq: CREE) 6% HIGHER; reports Q1 EPS of $0.10, 1 cent lower than the analyst estimate of $0.11. Revenues for the quarter were $140 million, versus the consensus of $139.64 million. Sees Q2 sales of $142-$146 million, versus the consensus of $146.5 million and EPS of $0.07-$0.08, which may not compare to the consensus of $0.11.

Illumina, Inc. (Nasdaq: ILMN) 5% LOWER; reports Q3 EPS of $0.22, 6 cents better than the analyst estimate of $0.16. Revenues for the quarter were $150.3 million, versus the consensus of $146.02 million. "For the fourth quarter of 2008, we expect revenues between $152 and $156 million. We expect gross margin percentage to exceed 65.5%. We expect earnings per fully diluted share of $0.22 to $0.24." (Consensus is $153.40 million and EPS consensus is $0.18). "We expect revenue for 2008 between $564 and $568 million, representing year-over-year growth between 54% and 55%. This represents an increase of $11 million from the midpoint of our previous guidance. We expect earnings per fully diluted share between $0.84 and $0.87." (Consensus is $562.22 million and $0.63)

Manhattan Associates (Nasdaq: MANH) 5% LOWER; reports Q3 EPS of $0.34, 5 cents worse than the analyst estimate of $0.39. Revenues for the quarter were $82.7 million, versus the consensus of $92.70 million. Sees Q4 EPS between $0.24-$0.34 vs. consensus of $0.44. "Our current market outlook assumes that market pressures similar to those in the third quarter continue through the fourth quarter,'' Sinisgalli added. "We therefore have recalibrated our full-year 2008 Adjusted Earnings Per Share guidance to a range of $1.36 to $1.46, representing growth of between 5% and 12% over 2007 full-year Earnings Per Share.'' (Consensus is $1.59)

Norfolk Southern Corp (NYSE: NSC) 5% HIGHER; reports Q3 EPS of $1.37, versus the analyst estimate of $1.21. Revenues for the quarter were $2.9 billion, versus the consensus of $2.76 billion.

Celadon Group (Nasdaq: CLDN) 4% HIGHER; reports Q1 EPS of $0.13, 2 cents better than the analyst estimate of $0.11. Revenues for the quarter were $146.9 million, versus the consensus of $151.53 million

Boston Scientific Corporation (NYSE: BSX) 4% HIGHER; reports Q3 adj-EPS of $0.16, 5 cents better than the analyst estimate of $0.11. Revenues for the quarter were $1.98 billion, versus the consensus of $1.97 billion. Sees Q4 sales of $1.97-$2.08 billion, versus the consensus of $2.05 billion and EPS of $0.10-$0.15, versus the Street estimate of $0.15.

Yahoo!, Inc. (Nasdaq: YHOO) 3% HIGHER; Reported relatively in-line Q3 results. The positive reaction appears to be related to a sigh of relief from investors who were concerned results could have been much worse. The Internet giant reported Q3 EPS of $0.09, ex-items, in-line with the analyst estimate of $0.09. Revenues for the quarter were $1.325 billion, versus the consensus of $1.37 billion. As expected, Yahoo! said on-line advertising softened in the third quarter. In addition, Yahoo! said it expects to reduce its global workforce by at least 10% during the fourth quarter of 2008.

Panera Bread (Nasdaq: PNRA) 3% HIGHER; reports Q3 EPS of $0.45, 2 cents better than the analyst estimate of $0.43. Revenues for the quarter were $315.2 million, versus the consensus of $317.87 million. Reaffirms forecast for FY08 EPS of $2.55-$2.71, versus the consensus of $2.63.

Avocent Corporation (Nasdaq: AVCT) 3% HIGHER; reports Q3 EPS of $0.60 (ex-currency exchange gain), 8 cents better than estimates. Revenues for the quarter were $183 million, versus the consensus of $177.62 million. "We expect fourth quarter revenue to be in the range of $175 million - $185 million, reflecting the current uncertain U.S. and global economic situation," stated Avocent's Chief Financial Officer Edward Blankenship. “We expect operational (non-GAAP) earnings per share of $0.55 - $0.63. These estimates include the expected operating results from our Pro A/V and Equinox serial product lines that we previously announced for divestiture."

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