Cisco Systems (CSCO) 18.12 -0.54: Lazard Freres initiates coverage with an UNDERPERFORM rating and price target of $12; firm's price target is based on stock trading at a 35 multiple, which is CSCO's mean for the 5-yr period from 1995-1999; finds $2 bln write-off of raw material, most of which is probably less than 12 months old, excessive and troublesome.
09:30 -- 10:00 ET (Updated throughout the hour)******
Martha Stewart (MSO) 20.10 +0.20: Tucker Anthny Sutro initiates coverage with a STRONG BUY rating and price target of $25; says company is building a universally recognized lifestyle brand by leveraging content and commerce across multiple channels; its affiliation with Kmart (KM) provides mass-market distribution for Martha Stewart Everyday products; firm forecasts 25-30% EPS growth, as profitability should improve despite difficult advertising market.
Home Depot (HD) 47.71 -0.80: Home improvement retailer announces the appointment of Dennis J. Carey to the new position of Executive Vice President of business development, strategy and corporate operations; also announces promotion of Carol B. Tome to Chief Financial Officer; both effective immediately; see press release.
UTI Worldwide (UTIW) 16.80 delayed: USB Piper Jaffray initiates coverage with a BUY; says international freight forwarder is positioned to provide customized supply chain solutions using advanced IT capabilities; earnings per share are expected to grow 15%-20% over the next 3-5 years; 12-month price target is $19.
Ticketmaster (TMCS) 14.25 -1.04: ABN AMRO downgrades to HOLD from ADD on the basis of valuation, as the stock has reached firm's price target of $16; with the stock currently trading at 66x firm's 2001 estimate and 31x its aggressive 2002 estimate, firm does not think the risk/reward scenario for TMCS is an attractive one for investors.
BEFORE THE OPEN (Updated throughout the hour)******
ABN AMRO on Software : ABN AMRO expands its Enterprise Software coverage; initiates coverage on Oracle (ORCL) with ADD rating and $21 target, Veritas Software (VRTS) with ADD and $81 target, BMC Software (BMC) with an ADD rating and $30 target; starts Computer Associates (CA) with a HOLD.
Nextel Comms (NXTL) 18.65: Goldman Sachs initiates coverage with a RECOMMENDED LIST rating and price target of $27; says that NXTL is the only national wireless operator with a DirectConnect service that is a dispatch-type service that allows subscribers to talk to one or more subscribers simultaneously; NXTL added 2.2 million net subscribers during 2000, up 48% over 1999.
Sprint PCS (PCS) 24.94: Goldman Sachs initiates coverage with a RECOMMENDED LIST rating and price target of $35; believes that PCS shares could enjoy some momentum in the short term based on strong operating results; says PCS has been extremely successful at growing its subscriber base, adding more subscribers in 1999 and 2000 than any other carrier.
Wind River Sys (WIND) 26.18: W.R. Hambrecht downgrades to MARKET NEUTRAL from BUY after company guided down for next quarter; citing headcount reductions at customers, concern about continued growth of service revenue stream, royalty revenues and pricing pressure.
CONSOL Energy (CNX) 35.95: Merrill Lynch upgrades to near-term BUY from near-term ACCUMULATE; with approximately 50% of CNX's calendar year 2002 shipments open for contract re-negotiation, and an additional 10% opening in calendar year 2003, firm believes CNX is well positioned to capture the significant increase in spot coal prices that has occurred over the past year; 12-month price objective is $45.
AT&T Wireless (AWE) 19.50: Goldman Sachs initiates coverage with a RECOMMENDED LIST rating and price target of $27; says that this tracking stock for AT&T Corp.'s wireless business, with its partners and affiliates, has licenses covering 98% of the US population; cites company's strong subscriber growth since its April 2000 IPO, adding almost 2.6 mln subscribers in 2000.
RF Micro Device (RFMD) 28.02: JP Morgan upgrades to BUY from long-term BUY; firm says June quarter is completely booked for 20% sequential revenue growth; believes premium valuation warranted given growth prospects and strong relationship with Nokia.
Proxicom (PXCM) 5.66: E-business consulting and development company reports Q1 loss of $0.13 a share, $0.01 worse than the First Call consensus of ($0.12), vs year-ago earnings of $0.04; revenues rose 2.4% to $39.09 mln from a year-ago of $38.17 mln. "As expected, our first quarter performance reflected the continued weakness in demand for IT services in U.S. and European markets," said CEO. "We have taken appropriate steps to align our cost structure with our current pipeline, and believe we remain in strong position to serve the IT needs of our global customers."; see press release.
April Employment Report : Nonfarm payrolls fell 223K vs market expectations of a 25K increase; the unemployment rate rose to 4.5% vs 4.4% expected; hourly earnings 0.4% vs consensus of 0.3%; average workweek 34.3 vs expected 34.2; this report was much weaker than expected.
Sapient (SAPE) 12.24: First Union Sec upgrades to STRONG BUY from BUY rating after company indicated that business is "less worse." Firm raises its conservative price target to $18 from $14 and introduces a 2002 earnings estimate of $0.25.
Charter Comm (CHTR) 21.75: Lehman Brothers upgrades to STRONG BUY from BUY; firm believes company is poised for multiple expansion as it continues to deliver accelerating revenue and cash flow growth; says delay of equity offering to mid to late 2002 or 2003 diminishes chance for a materially better entry point into the stock.
Extensity (EXTN) 7.80: Provider of Internet-based applications for employee relationship management (ERM) announces Kimberly-Clark (KMB) as a new customer; Kimberly-Clark will deploy Extensity Expense Reports to 11,000 users, saving costs and improving efficiencies; see press release.
Newfield Expl (NFX) 32.54: Company's Board of Directors authorizes the expenditure of up to $50 million to repurchase shares of the company's common stock; see press release.
Archstone (ASN) 25.18: Announces acquisition of Charles E. Smith Residential Realty (SRW 45.56) for $3.6 bln in a deal that would create the 2nd-largest apartment REIT in the country; exchange ratio of 1.975-to-1 values SRW at $49.73 per share, based on ASN's closing price Thursday; see press release.
AFTER THE CLOSE (03-May-01)******
Crown Castle (CCI) 22.82 -0.92: Owner and operator of towers and transmission networks for wireless communications and broadcast transmission companiesreports Q1 loss of $0.41 a share, $0.02 worse than the First Call consensus estimate, revenues rose 71.4% to $212.95 mln from a year-ago of $124.24 mln. Sees revenues of $850-900 mln, in line with current top-line street estimates; see press release.
Active After Hours (openx) : Nasdaq-100 After Hours Indicator trading down 3.1, suggesting an opening to the downside at tomorrow's open; stocks on the move...SMDK trading up $1.80 after reporting Q1 results of a loss of $0.15, $0.09 better than the First call estimate.
Hoover's (HOOV) 3.25 -0.01: -- Correction -- We incorrectly reported the Hoover's revenue figures earlier; the correct numbers were: revenue growth of 17.4% to $7.732 mln from a year-ago of $6.585 mln
iVillage (IVIL) 1.23 +0.09 : Reports Q1 loss of $0.38 a share, $0.04 worse than the First Call consensus of ($0.34); revenues fell 30.6% to $12.57 mln from a year-ago of $18.10 mln.
Creo Products (CREO) 20.85 +0.23: Company warns for Q3; sees EPS of $0.22-0.26; current EPS estimate is $0.35.
Hoover's (HOOV) 3.25 -0.01: Reports Q4 loss of $0.25 a share, $0.08 better than the First Call consensus of ($0.33); revenues rose 17.4% to $7.732 mln from a year-ago of $6.585 mln. Company expects Q1 2002 revenues to be 5% to 7% higher than the March quarter, and EBITDA to be slightly positive. Hoover's estimates revenues for the full year 2002 at approximately $37 to $39 mln, or 20% to 26% y/y growth.
J.D. Edwards (JDEC) 8.09 -0.14: Company issues upside preannouncement for Apr. qtr; sees revenues in the range of $210 to $215 million and EPS above current consensus estimates. Currect First Call consensus is ($0.05).
Imagex.com (IMGX) 1.45 -0.26: Reports Q1 loss of $0.37 a share, $0.01 better than the First Call consensus of ($0.38); revenues rose 162.6% to $14.63 mln from a year-ago of $5.57 mln. Revenues are expected to recover at least 5-7% q/q in the June quarter. Full year 2001 revenue is expected to range between $60 and $65 mln, or 20% to 30% growth over full year 2000 (in line with estimate of $63.75 mln).
GlobeSpan (GSPN) 23.03 -1.20: Company announces that it is commencing today a $100 mln offering of convertible notes. Trading down sharply to 21 on the news.
Cable Design (CDT) 13.90 -0.65: Company warns for Q3; sees EPS of $0.13-0.15; current EPS estimate is $0.30.
American Power (APCC) 15 +0.30: Reports Q1 earnings of $0.14 a share, $0.03 better than the First Call consensus of $0.11, vs year-ago earnings of $0.24; revenues rose 15.6% to $359.69 mln from a year-ago of $311.20 mln.
John Hancock (JHF) 36.80 -0.15: Reports Q1 earnings of $0.61 a share, $0.01 better than the First Call consensus of $0.60, vs year-ago earnings of $0.65; revenues rose 6.4% to $1.96 bln from a year-ago of $1.84 bln.
Razorfish (RAZF) 1.24 -0.37: Reports Q1 loss of $0.07 a share, $0.01 better than the First Call consensus of ($0.08), vs year-ago earnings of $0.07; revenues fell 33.5% to $42.66 mln from a year-ago of $64.12 mln. Jeff Dachis has decided not to continue as Chief Executive Officer of Razorfish. Jean-Philippe Maheu, former Chief Operating Officer has been promoted to the role of Chief Executive Officer.
Tumbleweed Sftwr (TMWD) 3.45 +0.70: Reports Q1 loss of $0.45 a share, $0.05 better than the First Call consensus of ($0.50); revenues fell 39.2% to $4.02 mln from a year-ago of $6.61 mln. Joseph Consul, Tumbleweed's chief financial officer, will be stepping down on May 4, 2001. Jim Heisch will become acting CFO.
Wind River Sys (WIND) 26.18 -2.26: Company projects Q1 earnings of $0.04-$0.06, compared to consensus of $0.06; also announces a 12%-15% reduction in workforce... Warns that challenging environment could result in a sequential decline in revenues in Q2.
Symbol Techs (SBL) 27.53 -0.58: Reports Q1 earnings of $0.12 a share, $0.02 better than the First Call consensus of $0.10, vs year-ago earnings of $0.14; revenues rose 40.7% to $450.20 mln from a year-ago of $320.00 mln. Company expects lower sequential quarterly growth than originally planned for 2001.
U.S. Industries (USI) 4.31 -0.43: Reports Q2 earnings of $0.14 a share, $0.02 better than the First Call consensus of $0.12, vs year-ago earnings of $0.32; revenues fell 32.4% to $617.10 mln from a year-ago of $913.20 mln.
Aurora Biosci (ABSC) 21.50 -1.39: Reports Q1 loss of $0.02 a share, $0.01 better than the First Call consensus of ($0.03), vs year-ago earnings of $0.01; revenues rose 14.6% to $17.52 mln from a year-ago of $15.29 mln... Sees Q2 and full yr revenues of $20 mln and $90 mln (both figures are approx. in-line with consensus estimates).
SmartDisk (SMDK) 3.40 +0.35: Reports Q1 loss of $0.15 a share, $0.09 better than the First Call consensus of ($0.24), vs year-ago earnings of $0.07. Revenue of $17.3 mln was down slightly from Q1 2000 revenue of $17.4 mln.
Titan Corp (TTN) 16.70 -0.25: Reports Q1 earnings of $0.01 a share, in line with the First Call consensus of $0.01, vs year-ago earnings of $0.13; revenues rose 18.1% to $260.11 mln from a year-ago of $220.22 mln.
Sapient (SAPE) 12.15 -0.85: Reports Q1 loss of $0.05 a share, $0.01 worse than the First Call consensus of ($0.04), vs year-ago earnings of $0.10; revenues rose 8.8% to $109.14 mln from a year-ago of $100.33 mln.
Starbucks (SBUX) 18.90 -0.81: Reports a 2% increase in April same-store sales, vs yr-ago increase of 12%; views April results as an aberration caused by difficult yr-ago comparisons, the overall slowing of the economy, and timing of shipments in its non-retail business... Remains comfortable with ability to meet 23%-25% revenue growth target for the yr. Notes that April's results were incorporated in company's recent full yr EPS guidance of $0.46. |
