Caraustar, Honeywell, J.P. Morgan
By Michael Baron & Jason Margolis, CBS.MarketWatch.com
Last Update: 5:46 PM ET Sep 12, 2000 NewsWatch
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U.S. stocks to watch
Caraustar Industries (CSAR: news, msgs) announced after the bell that it expects it third quarter earnings per share to miss estimates by 21 cents to 23 cents. Analysts currently expect a profit of 47 cents a share, according to First Call. The Austell, Ga. recycled paperboard company said lower fiber prices, reduced profits in the company's wallboard venture with Temple-Inland, and discontinued purchases from customer Georgia-Pacific hurt the company's earnings. Shares of Caraustar closed down 19 cents to $13.50.
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Updated:
9/12/2000 10:28:46 PM ET
Great Plains Software (GPSI: news, msgs), the Fargo, N.D., provider of accounting software for small and mid-sized companies, announced earnings per share of 9 cents, compared with 22 cents the same quarter a year ago. A survey of analysts by First Call had expected earnings of 3 cents. Revenues reached a record for a single quarter reaching $67.1 million. Shares of Great Plains closed down 63 cents to $24.69.
Honeywell (HON: news, msgs) announced that it expects third quarter earnings per share to be 76 cents, compared with 68 cents the same period a year ago. This would be in line with expectations by analysts surveyed by First Call. The company also expects to buy back 4 million shares by the end of the third quarter. Shares of the aerospace, automation, and transportation company closed up 31 cents to $36.88.
Investors punished PRI Automation (PRIA: news, msgs) after the supplier of automation systems to the semiconductor industry warned late Monday that its net income will fall short of analysts' expectations. PRI said that it expects to report net income "slightly above breakeven," compared with an average analyst earnings estimate of 52 cents a share, according to First Call. The company attributed the shortfall to capacity and supply chain problems in its factory systems division. Shares of PRI automation plunged $16.81, or 39 percent, to $25.88 during the regular session.
The New York Times reported after the closing bell that Chase Manhattan was in talks to buy J.P Morgan. Shares of JP Morgan (JPM: news, msgs) reached a 52-week-high on the Chase Manhattan rumors, closing the regular session up $10.75 to $177.75.Chase Manhattan (CMB: news, msgs) closed down $1.44 to $56.06. See full story.
Advancers for Tuesday
Best Buy (BBY: news, msgs) shares rose $4.75, or 7 percent, to close at $69.19. The electronics retailer reported second-quarter earnings of $76.7 million, or 36 cents a share, up from last year's profit of $58.1 million, or 27 cents a share, and 2 cents ahead of the average estimate of analysts polled by First Call. Sales rose 18 percent in the latest three months to $3.17 billion from $2.69 billion in the same period a year earlier. Same-store sales rose 5.1 percent for the period.
Boston Biomedica (BBII: news, msgs) climbed $2.09, or 52 percent, higher to $6.09 on news that it's received a patent related to the extraction of nuclelic acids from cells. In a press release issued shortly after Tuesday's opening bell, the West Bridgewater, Mass., biotechnology firm said it's been awarded a patent covering devices using its proprietary pressure cycling technology for the separation and purification of nucleic acids (DNA and RNA) from cells, tissue, and microbes. In addition, the company said it's received a Small Business Innovation Research grant from the National Institutes of Health to study the use of its pressure cycling technology to release DNA and RNA from tissues or difficult-to-disrupt cells, such as certain bacteria.
Chyron Corp. (CHY: news, msgs) climbed $1, or 37 percent, to $3.69, after the Melville, N.Y., provider of broadcasting products announced three deals related to the Olympics. Chyron said it has agreed to provide systems for the "on-air graphics look" of Olympics coverage by General Electric's (GE: news, msgs) NBC network, the Canadian Broadcasting Corp., and the Sydney Olympic Broadcast Organization. Financial terms weren't disclosed.
Friede Goldman Halter (FGH: news, msgs) added 81 cents, or 13 percent, to $7.25 after the company said it's signed nine contracts with a combined value of more than $52 million, excluding options. The offshore oil drilling and energy service will provide refurbishment and enhancement services to jack up drilling equipment.
Illuminet Holdings (ILUM: news, msgs) rallied $3.94, or 13 percent, to $33.50. The provider of network services to the telecommunications industry said that it would not proceed with a planned offering of common stock, due to stock market conditions. On July 17, company said it had filed a registration statement to offer approximately 4.2 million shares to the public, of which 400,000 were coming directly from the company. On that day, the stock dropped 5.4 percent to $41.63. Separately, Robertson Stephens analyst Marianne Wolk reiterated her "buy" rating on the shares, and raised quarterly estimates.
Millennium Cell (MCEL: news, msgs) advanced $4.31, or 35 percent, to $16.50 as fuel cell and alternative energy stocks posted healthy gains Tuesday. Other movers in the sector included Active Power (ACPW: news, msgs), Electric Fuel Corp. (EFCX: news, msgs), Avista (AVA: news, msgs), IMPCO Holding (IMCO: news, msgs), Plug Power (PLUG: news, msgs), Mechanical Energy (MKTY: news, msgs), Ballard Power (BLDP: news, msgs), Capstone Turbine (CPST: news, msgs), FuelCell Energy (FCEL: news, msgs) and H Power (HPOW: news, msgs),
Netergy Networks (NTRG: news, msgs) added $2.06, or 21 percent, to $11.69. The developer of prepackaged Internet protocol network services said that AT&T Labs, a unit of AT&T (T: news, msgs) will trial a wireless home networking service using its technology and service support offerings. Also, AT&T Labs will work with Netergy to develop a "cordless" phone interface with a cable environment. AT&T rose 6 cents to $30.56.
Nike (NKE: news, msgs) added $2.75, or 7.5 percent, to $39.38, ahead of its first quarter earnings report, which is expected after Thursday's closing bell. The average estimate of analysts polled by First Call expects the Beaverton, Ore., sports footwear and apparel provider's profit to report a profit of 74 cents a share. In last year's equivalent period, Nike earned $200.2 million, or 70 cents a share, on revenue of $2.5 billion.
Nu Horizons Electronics (NUHC: news, msgs), a distributor of microprocessors and memory chips, announced a 3-for-2 stock split payable on October 23 to shareholders of record as of Oct. 2. The company currently has 10.8 million fully diluted shares outstanding. Nu Horizons shares added $1.13, or 4 percent, to $28.38.
Oakley (OO: news, msgs) said it expects third-quarter earnings to come in above the average estimate of analysts polled by First Call for a profit of 18 cents a share. Oakley anticipates sales of $100 million, with earnings of 21 cents a share. The company attributed the strong sales growth to the success of several of its key eyewear styles. Oakley shares advanced 81 cents, or 4 percent, to $19.44.
Pier One Imports (PIR: news, msgs) reported second-quarter earnings of $17.7 million, or 18 cents a share, up from last year's profit of $11.9 million, or 12 cents a share, and 2 cents ahead of the average estimate of analysts polled by First Call. Sales rose 15.8 percent in the latest three months to $338 million from $291.8 million in the same period a year earlier. Same-store sales rose 12.1 percent in the second quarter. In addition, Pier One said September sales are off to a "very strong" start, giving it "confidence of continuing the company's strong sales and income trend as we head into the all-important fall and holiday seasons." Shares of Pier One rose $1, or 8.7 percent, to $12.44.
Qualcomm (QCOM: news, msgs) climbed $3.31, or 5.7 percent, higher to $61.44. China's Minister of Information Industry, Wu Jichuan, told the Financial Times that he has renewed the country's commitment to CDMA technology, which is developed by Qualcomm. Separately, Merrill Lynch issued a research report to clients on the wireless telecom sector. Analyst Linda Mutschler raised her estimate for the increase in penetration of the wireless industry to 8.9 percent from 7.0 percent.
Sonic Innovations (SNCI: news, msgs) said it has received purchase orders from its largest customer, Starkey Laboratories, for $4 million of hearing aid components for delivery in the third quarter ending Sept. 30, 2000 and $4 million of hearing aid components for delivery in the fourth quarter ending Dec. 31, 2000. Sonic Innovations' shares advanced $2.25, or 25 percent, to $11.25.
Spartan Stores (SPTN: news, msgs) jumped $1.41, or 28 percent, to $6.41. The Grand Rapids, Mich., supermarket retailer said it plans to buy back up to $5 million worth of its outstanding stock over the next 12 months. "Under the current conditions, we believe that purchasing our stock will be a very prudent use of our funds," said James Meyer, the company's chairman, president and CEO, in a press release. "We believe that our stock represents an exceptional value at the current price levels and we expect to buy back shares until the market begins to better reflect Spartan Stores value and future growth prospects."
Tenet Healthcare (THC: news, msgs) advanced $2.69, or 8.5 percent, to $34.31, on news that it expects first-quarter earnings to come in above Wall Street expectations. The Santa Barbara, Calif., health care services provider said first-quarter earnings will beat the average estimate of analysts polled by First Call for a profit of 44 cents. Tenet attributed the improved results to strong admissions trends and a favorable pricing environment. In addition, the company said that it reduced debt by about $240 million in the first quarter, an improvement over the prior-year quarter when Tenet's total debt increased by $130 million.
WAVO Corp. (WAVO: news, msgs) agreed to sell its satellite network unit to Cidera Inc. for $14.5 million. WAVO will receive $12.5 million in cash and $2 million in Cidera stock. The deal also calls for Cidera to enter into a service agreement to use WAVO's MediaXpress service to provide Internet-based media delivery services for select Cidera customers. Shares of WAVO jumped 16 cents, or 20 percent, to 94 cents. |
