Morning Movers 4/1: ZZ, SOA, MV, PDO, HYTM Higher; SGIC, SAH, TGEN, TISI, ZOLL, CELG Lower

April 1, 2009 9:33 AM EDT

Silicon Graphics, Inc. (NASDAQ: SGIC) 73% LOWER; Rackable Systems, Inc. (NASDAQ: RACK) today announced its agreement to acquire substantially all the assets of Silicon Graphics for approximately $25 million in cash, subject to adjustment in certain circumstances, plus the assumption of certain liabilities associated with the acquired assets. Click here for the full report.

Sonic Automotive (NYSE: SAH) 31.3% LOWER; reports Q4 loss from continuing operations of $16.43. Adjusting for charges, the company reported a loss of $0.12, compared to a gain of $0.62 in the same quarter last year. Revenue for the quarter was $1.255 billion, versus the consensus of $1.46 billion. Also said it won't provide guidance and that its auditors issued a "going concern" statement.

Targeted Genetics (Nasdaq: TGEN) 29.3% LOWER; reports Q4 loss of $0.54, compared to a loss of $0.26 in the same quarter last year.

Sealy Corp. (NYSE: ZZ) 24.2% HIGHER; reports Q1 EPS of $0.04, versus the analyst estimate of ($0.03). Revenue for the quarter was $310 million, versus the consensus of $309.54 million.

Solutia Inc. (NYSE: SOA) 17.1% HIGHER; today announced it has entered into a definitive agreement to sell its nylon business to an affiliate of SK Capital Partners II, L.P. At the closing of the sale, Solutia will receive $50 million in cash and a 2% equity stake in a new company formed to hold substantially all of the assets of the nylon business. Solutia will also receive $4 million in deferred cash payments to be paid in annual $1 million installments beginning in 2011. Click here for the full report.

Team Inc (Nasdaq: TISI) 15.5% LOWER; reports Q3 EPS of $0.11, 2 cents lower than the analyst estimate of $0.13. Revenue for the quarter was $104.3 million, versus the consensus of $115.25 million. Lowers its FY09 sales guidance from about $520 million to about $500 million, versus the consensus of $524.69 million. FY09 EPS move from $1.45-$1.60 to $1.05-$1.20, versus the Street estimate of $1.31. Sees Q4 sales of about $120 million, versus the consensus of $137.70 million.

ZOLL Medical Corporation (Nasdaq: ZOLL) 15% LOWER; announced that preliminary revenues for Q2 were approximately $90-$92 million, down approximately 8% from revenues in the same period last year, and compared to the Street estimate of $101.43 million. The Company estimates that EPS for the quarter will be in the range of $0.05-$0.10, falling below the consensus earnings estimate of $0.24.

Celgene (Nasdaq: CELG) 12.6% LOWER; will present at the 4th Annual Citi Biotech Day. Reaffirms its FY09 sales and EPS guidance, but at the low end of the range. Click here for the full report.

Metavante Technologies, Inc. (NYSE: MV) 10.7% HIGHER; Fidelity National Information Services, Inc. (NYSE: FIS) and Metavante today announced that the boards of directors of both companies have approved a definitive agreement under which FIS will acquire Metavante. Under the terms of the agreement, Metavante shareholders will receive a fixed exchange ratio of 1.35 shares of FIS common stock for each share of Metavante common stock they own. The pro forma enterprise value of the combined company is approximately $10 billion.

Heelys, Inc. (Nasdaq: HLYS) 9.4% LOWER; reports Q4 loss of $0.19, versus the analyst estimate of $0.01. Revenue for the quarter was $15.6 million, versus the consensus of $20.20 million. (only 1 analyst covers the stock)

Apollo Group (Nasdaq: APOL) 7.7% LOWER; reports Q2 EPS of $0.77, versus the analyst estimate of $0.65. Revenue for the quarter was $876.1 million, versus the consensus of $865.45 million. Also, Robert W. Baird downgraded the stock from Outperform to Neutral and cut its price target to $85.

Seagate (NYSE: STX) 7% LOWER; Deutsche Bank downgrades the stock from Hold to Sell. Price target increased from $4 to $4.50. Click here for the full report.

Pyramid Oil Company (AMEX: PDO) 6.9% HIGHER; reports Q4 loss of $0.20, compared to a gain of $0.09 in the same quarter last year. Revenue for the quarter was $898K, versus $1.4 million in Q407.

China Unicom (NYSE: CHU) 6.8% LOWER; Bank of America downgrades CHU from Neutral to Underperform.

Hythiam, Inc. (Nasdaq: HYTM) 6.5% HIGHER; reports Q4 loss of $0.35, including items, so may not compare to the analyst estimate of ($0.15). Revenue for the quarter was $8.6 million, versus the consensus of $9.95 million.

Ashland (NYSE: ASH) 6.5% HIGHER; J.P. Morgan upgrades from Neutral to Overweight. Click here for more color on the upgrade.

Borders Group Inc. (NYSE: BGP) 6.4% HIGHER; reports Q4 EPS from continuing operations of $0.48, which may not compare to the analyst estimate of $0.95. The company reported Q4 GAAP EPS of $1.14 last year. Revenue for the quarter was $1.09 billion, versus the consensus of $1.15 billion.

AMBAC (NYSE: ABK) 6.4% LOWER; filed a $1 billion mixed securities shelf with the SEC. The company may offer common stock, preferred stock, senior debt securities, junior subordinated debt securities, warrants to purchase our capital stock or debt securities.

Las Vegas Sands Corp. (NYSE: LVS) 6.3% HIGHER; Chairman/CEO Sheldon G. Adelson disclosed he bought 7,839,800 shares on 3/27-3/30 at prices from $2.82-$3.08, bringing his stake to 338,382,730 shares.

ON Semiconductor (Nasdaq: ONNN) 5.9% HIGHER; UBS upgrades ON from Neutral to Buy.

Fortress Investment Group LLC (NYSE: FIG) 5.6% LOWER; announced today that it elected not to pay a dividend in Q109. Consistent with its decision last quarter, the Board elected to retain capital for potential future investment opportunities and for working capital purposes. Fortress previously paid a quarterly dividend of $0.22 per common share.

Salesforce.com (NYSE: CRM) 5.3% LOWER; Goldman Sachs added the stock to its Conviction Sell List, saying that slowing tech spending will drag down earnings. The firm also said the valuation suggest significant growth, in a time when more conservative growth is likely.

Oshkosh Corporation (NYSE: OSK) 4.6% HIGHER; anticipates recording non-cash impairment charges of $1.2 - $1.5 billion for the write-down of goodwill and other indefinite-lived intangible assets in the second quarter of fiscal 2009. The Company expects the impairment charges to be largely non-deductible for income tax purposes.

Fairchild Semiconductor International Inc. (NYSE: FCS) 4.6% HIGHER; UBS upgrades Fairchild from Neutral to Buy.

Vodafone PLC (NYSE: VOD) 4.4% HIGHER; Goldman Sachs upgrades the stock from Neutral to Buy and added the stock to their Conviction Buy List. Elsewhere, Morgan Stanley upgraded the stock to Overweight.

Boeing Company (NYSE: BA) 3% LOWER; Wachovia downgrades the stock to Market Perform. Lowers valuation range from $51-54 to $38-40. Click here for the full report.

BB & T Corp. (NYSE: BBT) 2.8% LOWER; Goldman Sachs adds BB&T to its Conviction Sell List.

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