Morning Movers 12/10: Rio Tinto (RTP) Up On Capital Plans/Job Cuts; Electronic Arts (ERTS) Sinks On Guidance

December 10, 2008 9:49 AM EST

StreetInsider.com Morning Movers:

DryShips, Inc. (NASDAQ: DRYS) 26% HIGHER; Agreed to cancel the previously declared acquisition of four Panamax dry bulk carriers, which was announced on July 3, 2008, from companies beneficially owned by George Economou, Chairman and CEO of DryShips Inc. The aggregate purchase price of US$ 400 million would have represented a significant cash outflow from the Company's cash reserves given that the Company had not obtained bank financing for the acquisition.

Genworth Financial (NYSE: GNW) 24% HIGHER; reached a definitive agreement with respect to the acquisition of InterBank, fsb of Maple Grove, Minnesota. The completion of the proposed acquisition is subject to the approval of the Office of Thrift Supervision (OTS), Genworth receiving approval to participate in the U.S. Treasury Department's Capital Purchase Program (CPP) under the Troubled Asset Relief Program (TARP), as well as the satisfaction of other customary closing conditions.

Excel Maritime Carriers, Ltd. (NYSE: EXM) 20% HIGHER; Drybulk shippers continue to bounce from low-levels.

Rio Tinto (NYSE: RTP) 19% HIGHER; announced plans to reduce debt by $10 billion by the end of 2009 and a reduction in its global headcount by 14,000. Rio Tinto also announced that capital expenditures to be reduced to sustaining levels in 2010, absent an improvement in expected commodity market conditions. Rio Tinto also announced announced that its 2008 dividend will be held at the 2007 level of $1.36, with no $0.20 lift in 2008 and 2009. Rio Tinto also expanded the scope of assets targeted for divestment including significant assets not previously highlighted for sale.

Genco Shipping & Trading Ltd. (NYSE: GNK) 16% HIGHER; Drybulk shippers continue to bounce from low-levels.

NightHawk Radiology (Nasdaq: NHWK) 14% HIGHER; confirmed the company's annual guidance of $165 to $168 million in revenue and adjusted earnings of $0.64 to $0.67 per diluted share for the year ended December 31, 2008. (FY revenue consensus is $166.59M and $0.66). The company also announced today that it intends to initiate its previously authorized share repurchase program to purchase up to $10 million of its common stock.

A. O. Smith Corporation (NYSE: AOS) 13% LOWER; expects fourth quarter results will be weaker than expected due to sluggish demand in both its water heater and electric motor businesses. As a result, the previously communicated 2008 forecast of $2.80 to $2.90 per share will likely not be achieved. The company now expects fourth quarter earnings to be between $.15 and $.25 per share. For the year, it expects earnings per share to be between $2.63 and $2.73. The consensus is $0.45 and $3.07, respectively.

Electronic Arts (NASDAQ: ERTS) 10% LOWER; today announced that it expects net revenue and EPS for FY09 to be below the financial guidance previously provided on October 30, 2008. The revised expectations are primarily the result of lower than expected sales across North America and Europe. The Company does not expect to provide updated financial guidance for FY09 prior to reporting its Q3 results in early February 2009. The Company is continuing to pursue cost saving initiatives including a reduction of its product portfolio for FY10 with additional associated headcount reductions and facility consolidations.

Bucyrus International Inc. (NASDAQ: BUCY) 9% HIGHER; Cramer highlights

Cavium Networks (NASDAQ: CAVM) 8% LOWER; today announced that business in Q408 will be below the company's previous outlook. Sees Q4 sales about 10% below Q3 sales of $24.5 million. Gross margins during Q4 are expected to be 2-3% lower than previously expected, due to the lower sales and changes in product mix.

Arena Pharmaceuticals, Inc. (Nasdaq: ARNA) 7% LOWER; today announced preliminary data from a Phase 2b clinical trial of APD125 measuring subjective endpoints in patients with primary insomnia. The initial data analysis indicates that APD125 did not meet the trial's primary or secondary endpoints. Treatment with APD125 was well tolerated, and there were no reports of serious adverse events and no emerging safety findings as compared to placebo. Arena is finishing a complete analysis of the data, but does not anticipate any further development of APD125.

Focus Media Holding Ltd. (Nasdaq: FMCN) 6% LOWER; Announces the Restructuring of its In-store Advertising Unit and Terminating of its Remaining Wireless Advertising Business

AIG (NYSE: AIG) 6% LOWER - AIG Faces $10 Billion in Losses on Bad Bets - WSJ

American Express Company (NYSE: AXP) 5% LOWER; Citi and BofA start coverage at Sell

Ocean Power Tech (Nasdaq: OPTT) 5% LOWER; reports Q3 loss of $0.60, cents better than the analyst estimate of ($0.42). Revenue for the quarter was $667 thousand, versus the consensus of $1.89 million.

Eastman Kodak Company (NYSE: EK) 5% LOWER; today announced that it has withdrawn its second-half and full-year 2008 guidance for revenue growth, digital revenue growth, earnings from continuing operations, and cash generation because of the deepening global recession and changes in the value of the U.S. dollar.

G-III Apparel Group (Nasdaq: GIII) 4.7% HIGHER; reports Q3 EPS of $1.68, 1 cent better than the analyst estimate of $1.67. Revenue for the quarter was $351.6 million, versus the consensus of $338.34 million. G-III Apparel Group expects FY09 EPS $0.95 to $1.05 versus previous guidance of $1.35-$1.40 and consensus of $1.27. G-III Apparel Group sees FY09 revenue approximately $715 million versus previous guidance of $730 million and consensus of $707.15 million.

Sina Corp. (Nasdaq: SINA) 4% LOWER; Citi downgrade

Yahoo! Inc. (Nasdaq: YHOO) 3% HIGHER; Shareholder Ivory wants company to salvage Microsoft takeover

Wells Fargo & Company (NYSE: WFC) 3% LOWER; Merrill Lynch downgrade

LTX Corporation (Nasdaq: LTXC) 2.7% LOWER; reports Q1 loss of $0.13, ex-items, in-line with the analyst estimate of ($0.13). Revenue for the quarter was $47.13 million, versus the consensus of $53.43 million. Sees Q2 sales of $37-$42 million, versus the consensus of $67.40 million. Sees Q2 non-GAAP loss of $0.22-$0.19, versus the Street estimate of ($0.09).

ADC (Nasdaq: ADCT) 1.6% HIGHER; reports Q4 EPS of $0.19, 6 cents better than the analyst estimate of $0.13. Revenue for the quarter was $352 million, versus the consensus of $347.02 million. ADC sees Q1 loss between $0.05 to $0.17 versus consensus of $0.09. ADC sees Q1 revenue $255M-$290M versus consensus of $316.79 million.

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