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U.S. stocks were flat on Wednesday as investors found few reasons to extend a rally that has taken indexes to repeated records, even though market valuations were not seen as unduly stretched. The Dow Jones industrial average was up 0.06 percent at 17,116.86 and the S&P 500 was up 0.01 percent at 2,000.23.
** TUBEMOGUL INC, $13.35, +44.79 pct
The software company reported second-quarter revenue of $28.7 million, above the average analyst estimate of $24.7 million, on strong demand for its video advertising software. The company also sees 2014 total revenue of $98-$102 million, above analysts’ average estimate of $91.7 million
** SMITH & WESSON HOLDING CORP, $11.28, -13.89 pct
** STURM RUGER & CO INC, $48.95, -4.08 pct
Smith & Wesson forecast a second-quarter profit below analysts’ estimates and cut its 2015 profit and revenue forecast, citing industrywide high inventories and weak consumer buying during summer.
CRT Capital analysts said Sturm Ruger’s revenue could fall more dramatically than Smith & Wesson‘s. The brokerage cut its rating on the Sturm Ruger stock to “fair value” from “buy” and slashed its price target to $55 from $75.
At least four brokerages, including CRT and Cowen and Co, cut their price target on Smith & Wesson’s shares.
** EDUCATION MANAGEMENT CORP, $1.3472, -12.52 pct
The company said it had agreed on a restructuring that would reduce its debt by about $1.1 billion and would seek a waiver of all financial covenants through June.
** RADIOSHACK CORP, $1.04, +20.93 pct
The retailer’s second-largest shareholder, Standard General LP, is negotiating a rescue package with investors to help the consumer electronics retailer ward off bankruptcy, Bloomberg reported, citing people with knowledge of the matter.
** VIMICRO INTERNATIONAL CORP, $3.94, +12.57 pct
The China-based provider of audio and video signal processing chips for cameras in PCs reported second-quarter revenue and profit above analysts’ average estimates, boosted by higher demand for its video surveillance products.
** EXPRESS INC, $16.41, +12.47 pct
The apparel retailer reported a profit of 8 cents per share for the second quarter, compared with the average analyst estimate of breakeven on a per-share basis. The company also raised its full-year profit forecast to 85-95 cents per share from 74-90 cents.
** YINGLI GREEN ENERGY HOLDING CO LTD, $3.33, -6.46 pct
The Chinese solar company reported a bigger-than-expected quarterly loss and cut its forecast for 2014 panel shipments as demand begins to falter due to U.S. duties on China- and Taiwan-made solar products.
** ARUBA NETWORKS INC, $21.3488, +5.48 pct
At least two brokerages upgraded the network gear maker’s stock and five others raised their price targets to up to $28. Analysts said Aruba is benefiting from “strong adoption” of Wi-fi products, compared with rivals such as Cisco Systems Inc
** TIFFANY & CO, $101.64, +0.86 pct
The upscale jeweler raised its full-year profit forecast for a second time following a better-than-expected quarterly profit, driven by strong sales in the Americas and Asia-Pacific regions.
For a graphic: link.reuters.com/saj72w
** SEADRILL LTD, $36.56, -2.95 pct
The world’s biggest offshore driller by market capitalisation reported second-quarter earnings below forecasts on Wednesday and offered a cautious outlook for the rig market.
** TALISMAN ENERGY INC, $10.2, -4.58 pct
Spanish energy company Repsol SA’s talks to buy Canadian producer Talisman Energy are in difficulty, three sources familiar with the matter said, with Talisman’s North Sea assets the stumbling block.
** TETRA TECHNOLOGIES INC, $11.84, +4.32 pct
Cowen and Co analysts raised its rating on the oilfield services company’s stock to “outperform” from “market perform”.
Tetra’s master limited partnership, Compressco Partners LP, said in July it would buy natural gas compression provider Compressor Systems Inc for $825 million. Cowen and Co analysts termed the acquisition a “game changer”.
The brokerage also raised its price target on the stock to $16 from $14.
** AEGERION PHARMACEUTICALS INC, $32.215, +4.02 pct
The drugmaker said it resolved concerns raised in a warning letter by the U.S. FDA related to its cholesterol drug, Juxtapid
** PENN WEST PETROLEUM LTD, $7.72, +4.75 pct
The Canadian oil and gas producer said a recent review of its accounting practices would have no impact on independent estimates of its proved reserves and their value as reported for 2012 and 2013.
Penn West said in July it was conducting an internal review of its accounting practices examining certain entries “which appear to have been made” to reduce operating costs, increase capital expenditures.
The company reported proved plus probable company gross reserves estimate of 625 million barrels of oil equivalent as at Dec. 31, 2013.
** REDHILL BIOPHARMA LTD, $14.59, +3.48 pct
The Israeli drug developer said the U.S. FDA allowed the company to develop its lead antibiotic for a significantly broader indication than existing H. pylori therapies.
The drug, RHB-105, is a combination treatment designed to fight H. pylori infections, a major cause of chronic gastritis, peptic ulcer disease and gastric cancer. Current H. pylori treatments typically treat patients with active or recent history of ulcers. The broader indication will allow the drug to target the infection regardless of ulcer status.
** FLAGSTAR BANCORP INC, $17.85, -3.46 pct
The bank holding company said it had started discussions with the Consumer Financial Protection Bureau related to alleged violations of consumer financial laws, dating back to 2011.
Brokerage BTIG cut tis rating on the stock to “sell” from “neutral”. “We believe the CFPB’s allegations create a new layer of uncertainty around FBC, generating a round of questions about the company’s servicing operations,” analyst Mark Palmer said.
** CHICO‘S FAS INC, $15.57, -2.81 pct
The women’s apparel retailer reported lower-than-expected second-quarter revenue and profit as comparable sales grew only 0.3 pct and average transaction value declined. The company said gross margin decreased 240 basis points to 52.4 percent due to more discounting to clear seasonal merchandise.
** PIONEER NATURAL RESOURCES CO, $207.82, -1.67 pct
Canaccord Genuity cut its rating on the oil and gas company’s stock to “hold” from “buy” and lowered its price target to $224 from $305.
** BANK OF MONTREAL, $76.89, +2.71 pct
At least five brokerages raised their rating on Canada’s fourth-largest bank.
Bank of Montreal reported a stronger-than-expected third-quarter profit on Tuesday, helped by gains at its Canadian and U.S. personal and commercial banking units and higher revenue at its capital markets arm.
** MANNKIND CORP, $7.5, +2.18 pct
Jefferies & Co initiated coverage on the drugmaker’s stock with a “buy” rating and a price target of $10. The brokerage said it expected MannKind’s inhaled insulin therapy, Afrezza, to “find a niche among mealtime insulins”.
Earlier this month, MannKind signed a worldwide licensing agreement with French drugmaker Sanofi for Afrezza. Under the deal, Sanofi will have the right to develop and market Afrezza (Compiled by Rohit T.K. and Lehar Maan in Bangalore; Edited by Maju Samuel)