Movers: Wal-Mart, Intel, NetApp, Citigroup

Stocks in the news Thursday

From Standard & Poor's Equity Research

Wal-Mart Stores (WMT) posts $0.77, vs. $0.70 a year ago, third quarter EPS from continuing operations on 3.0% higher total US same-store sales without fuel, 3.3% higher with fuel, 7.5% higher total company sales. It sees fourth quarter U.S. same-store sales increase of 1%-3%, EPS from continuing operations of $1.03-$1.07; notes that rapid changes in currency exchange rates during last few weeks projected to negatively affect fourth quarter results by approximately $0.06 per share. For fiscal year 2009, tightens, modestly reduces EPS from continuing operations to range of $3.42-$3.46.

Intel (INTC) cuts $10.1-$10.9 billion fourth quarter revenue guidance to $9 billion, plus or minus $300 million. The chip maker cites significantly weaker-than-expected demand in all geographies and market segments. Also says PC supply chain is aggressively reducing component inventories. Now expects gross margin of 55%, + or - a couple of points, primarily due to lower revenue and other charges associated with the weaker-than-expected demand environment. FBR Capital cuts estimates, target, keeps market perform.

NetApp (NTAP) posts better-than-expected $0.28, vs. $0.32, second quarter non-GAAP EPS as higher operating expenses offset 15% revenue rise. Given reduced visibility caused by recent changes in macroeconomic environment, NTAP will not be providing formal revenue guidance for third quarter fiscal year 2009, but expects non-GAAP gross margins and operating expenses to be substantially the same levels as in the second quarter. S&P reiterates hold.

Citigroup (C) - WSJ reports that the board of CITIGROUP is growing increasingly dissatisfied with the financial giant's performance, and some directors are considering replacing Sir Win Bischoff as chairman, according to people familiar with the matter. One leading candidate is Richard Parsons, Time Warner's (TWX) chairman and a member of Citi's board.

Applied Materials (AMAT) posts $0.17, vs. $0.30, fourth quarter GAAP EPS on 14% sales decline. Gross margin was 39.1%, down from year ago's 45.5%. To implement a restructuring program beginning in the first quarter fiscal year 2009, which will include about 12% reduction to its global workforce. Puts stock buyback program on hold. Reportedly sees breakeven to $0.04 first quarter EPS.

National Semiconductor (NSM) cuts second quarter sales guidance to $420-$425 million from $470-$480 million. It cites weakened economy that has led to lower-than-expected shipments to customers in the wireless handset market which comprised about one-third of NSM's sales in the first quarter, lower shipments to distributors. Also says it taking action to cut operating expenses, including elimination of about 330 positions.

Amag Pharmaceuticals (AMAG) says FDA has designated the company's resubmission to the Oct. 2008 Complete Response letter for its NDA for ferumoxytol as a complete, Class 1 response. FDA has established a Dec. 30, 2008 Prescription Drug User Fee Act (PDUFA) target action date. Says AMAG is seeking marketing approval for ferumoxytol for treatment of iron deficiency anemia in patients with all stages of chronic kidney disease, incl. those on dialysis and those not on dialysis.

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