E.piphany (EPNY) 14.57 +0.87: ABN AMRO upgrades to ADD from HOLD with a price target of $18; reasons include: (1)
firm believes corporate IT budgets in many vertical industries are firming; (2) believes the macroeconomic environment is "stabilizing;" and
(3) says CRM solutions, like E.piphany's, are receiving more and more attention from purchasing managers, CIOs, and CEOs.
Guilford Pharm (GLFD) 22.39 +0.01: Announces that it was been issued a U.S. Patent on March 20, 2001, covering AQUAVAN
Injection, a proprietary water soluble prodrug of propofol, the most widely used general anesthetic in the world; see press release.
BEFORE THE OPEN (Updated throughout the hour)******
C&D Technologies (CHP) 36.40: Producer and marketer of electrical power storage and conversion products reports Q1 earnings of
$0.62 a share, $0.06 better than the First Call consensus of $0.56, vs year-ago earnings of $0.41; revenues rose 12.6% to $155.38 mln
from a year-ago of $138.01 mln. "...the second quarter will be a challenge. Although we are confident of improving upon the 49 cents per
share earned in last year's second quarter, it is unlikely we will achieve another record quarter. While we are cautious, the current level of
business combined with recently implemented cost containment and spending programs, could enable us to meet analysts' earnings estimates
in the range of 57 to 60 cents per share in the second quarter," said CEO; see press release.
Intel (INTC) 28.76: Introduces its first generation of the Intel Xeon processors based on the NetBurst architecture; the processors will
initially target high-performance and mid-range, dual-processor enabled workstations and ship at frequencies up to 1.7 GHz; Intel expects
Intel Xeon-based workstations to achieve performance increases between 30%-90% over systems featuring the Pentium III Xeon
processor, depending on applications and configurations; expects dual-processor server platforms based on the Intel Xeon processor to be
available in the second half of 2001; see press release.
Agilent Tech (A) 36.00: -- Update -- Company signs an agreement to acquire all of the issued share capital of Sirius Communications
NV, a developer of CDMA application-specific integrated circuits (ASICs) for the 3G wireless and satellite communications market;
financial terms of the agreement were not disclosed; see press release.
Toys R Us (TOY) 28.59: Reports Q1 loss of $0.09 a share, $0.03 worse than the First Call consensus of ($0.06), vs year-ago earnings
of $0.06; revenues rose 3.0% to $2.06 bln from a year-ago of $2.00 bln. "In line with the plans we previously described, the investments
we are making throughout our business will negatively affect our financial performance during the first three lower revenue quarters of the
year. However, we are confident that the improvements being made will deliver substantial benefits to Toys "R" Us by this year's more
important holiday season and will allow us to better grow and enhance our business well into the future, " said CEO; see press release.
Caterpillar (CAT) 55.25: Legg Mason downgrades to MARKET PERFORM from STRONG BUY; firm says Caterpillar shares have
now reached its near-term target price of $55, and firm sees several reasons why the spring rally in CAT shares will be difficult to sustain in
the next few months; cites the past seasonality in the group, combined with company-specific factors, and macro issues; says a summertime
dip in CAT's stock price could provide an attractive entry point by the autumn of 2001, but firm is wary of any expectations for a rapid
upturn in machinery or truck engine markets.
EMC Corp (EMC) 40.35: Wit SoundView downgrades to HOLD from BUY given uncertain environment and potential for further
disappointments; further checks suggest that the first two weeks of May did not show a firming of demand as predicted by EMC;
says company appears to be about to take aggressive action to improve profitability in the changing competitive environment; would
become more comfortable with the stock at $30.
AFC Enterprises (AFCE) 24.70: Reports Q1 earnings of $0.27 a share, $0.01 better than the First Call consensus of $0.26, vs
year-ago earnings of $0.18; revenues rose 8.6% to $753.40 mln from a year-ago of $693.60 mln. Company posted 13.1% growth in
franchise revenues driven primarily by the addition of 289 franchised units, as well as a domestic franchised comparable sales increase of
2.4%; see press release.
E*TRADE (ET) 9.20: Announces that it will acquire Web Street, Inc. ( WEBS), parent company of Web Street Securities, an online
brokerage firm, for approximately $45 mln in stock; deal is expected to add annual revenues of about $25 mln to ET results; see press
release.
Agilent Tech (A) 36.00: Merrill Lynch downgrades to near-term NEUTRAL from near-term ACCUMULATE following earnings
warning last week; in light of the losses firm now expects through the end of 2001, believes it may take a while before the shares attract
investors with an intermediate time horizons.
Wallace Computer (WCS) 18.70: Provider of printed products and print management services warns for Q3, expects about $0.34 vs
current First Call EPS estimate of $0.42; due to current and anticipated economic conditions, company also lowers its guidance for
anticipated earnings results for Q4, which are expected to be similar to Q3 results; see press release.
Intimate Brands (IBI) 16.44: Reports Q1 earnings of $0.07 a share, in line with the First Call consensus, vs year-ago earnings of $0.13;
revenues fell 1.6% to $1.03 bln from a year-ago of $1.04 bln. Company stated that given continuing negative comparable store sales
trends, it now expects EPS to be down significantly from $0.20 posted in year-ago period (First Call estimate is $0.17) in second quarter
and down slightly for the full year 2001 compared to last year; see press release.
Walt Disney (DIS) 32.60: Salomon Smth Brny upgrades to BUY from OUTPERFORM and ups price target to $40 from $35; sees the
movie PearlHarbor as a catalyst from a psychological stand point; other positives include: launch of aggressive newprime time line-up for
ABC, easy 2002 comps in consumer products and could benefit from an improving economic backdrop, stock trading at 12% discount to
entertainment group.
Ford Motor (F) 27.13: CSFB downgrades to HOLD from STRONG BUY and removes stock from Focus List due to concerns about
Explorer brand; Ford recalled 50K 2002 Explorers for tire damage, CSFB says the integrity of the brand is now at risk.
Limited (LTD) 17.10: Specialty retailer reports Q1 earnings of $0.07 a share, in line with the First Call consensus, vs year-ago earnings
of $0.14; revenues rose 0.1% to $2.13 bln from a year-ago of $2.12 bln. Also, company says that due to the continuing negative
comparable store sales trends, it now expects EPS to be down significantly below $0.17 reported in same period year-ago (current First
Call EPS estimate is $0.14) in second quarter and down slightly for the full year 2001 compared to last year; see press release.
Lowe's Cos (LOW) 68.40: Reports Q1 earnings of $0.58 a share, $0.04 better than the First Call consensus of $0.54, vs year-ago
earnings of $0.49; revenues rose 18.1% to $5.28 bln from a year-ago of $4.47 bln. "We continued investing in our future by opening a
record number of first quarter stores and a sixth regional distribution center. Despite these investments, a slowing economy and a
competitive retail environment, we expanded operating margins and gained considerable leverage by carefully controlling expenses," said
CEO. Company expects Q2 earnings of $0.80-$0.82 (mean $0.81) and full year net of $2.45-$2.48 (mean $2.43); see press release.
Atmel Corp (ATML) 12.55: Announces it will collaborate with TriQuint Semi (TQNT) on the design, manufacture and marketing of
integrated solutions for the CDMA (Code Division Multiple Access) handset market; the joint development project (CDMA345) is
currently developing a complete RF chipset solution for CDMA handsets; see press release.
Vignette (VIGN) 10.02: Salomon Smth Brny upgrades to OUTPERFORM from NEUTRAL and ups price target to $12 from $8 as
firm believes business has stabilized, ties are deepening with key system integration partners, migration to J2EE is complete, and the
company is focused on profitability.
Procter & Gamble (PG) 67.48: Announces that it will purchase the Clairol business from Bristol-Myers Squibb Company (BMY) for
$4.950 bln in cash; expects acquisition to contribute about $1.6 bln in sales to P&G's Beauty Care business; see press release.
AFTER THE CLOSE (18-May-01)******
Juniper Networks (JNPR) 54.81 +1.37: -- Clarification -- In an In Play comment yesterday, we wrote that the company did not change
its guidance at the CSFB conference but said that there was a risk of a 10% decline in revenues. This suggested that the risk of a 10%
decline was a modification of earlier guidance when in fact Juniper noted this same risk in its April 12 conference call, and thus the guidance
offered yesterday was identical to that offered on its quarterly earnings conference call.
VeriSign (VRSN) 60.74 +2.74: Reuters reporting that the Commerce Department approved VRSN's ICANN deal and VeriSign will be
allowed to maintain control over the .com domain, through 2007 and the .net registry through 2005. Deal also calls for VeriSign to give up
control of the .org domain. VRSN after hours...61.68 +0.94.
AT&T (T) 22.10 +0.12 : -- Update -- AT&T said that it continues to discuss with Excite@Home (ATHM) the proposed restructuring of
their backbone fiber agreement, and a joint initiative to maintain and improve current network performance levels. However, the two
companies have not been able to reach agreement yet and there is no assurance that they will; see press release.
AT&T (T) 22.10 +0.12: Announces that it has revised the terms under which the company will satisfy the March 28, 2000
Excite@Home put obligations to Cox Communications and Comcast. Cox and Comcast have agreed to retain their stakes in
Excite@Home thus forgoing the tax-free exchange. In the new agreement, which will result in a substantial tax benefit for AT&T, AT&T
will issue 75 million shares to Cox and more than 80 million shares to Comcast; see press release.
Aquila Energy (ILA) 32.65 +0.10: Recent IPO raises guidance for fiscal year to approximately $1.52-$1.62 per share, based on
expected net income of $145-$155 mln. Prior guidance was $1.25 per share. No estimates available; see press release.
Pharmacia (PHA) 49.60 +0.11: Company announces it has received a "not approvable" letter from the FDA for VESTRA
(reboxetine mesylate tablets), the company's investigational antidepressant. FDA has agreed to convene an advisory committee meeting of
outside experts later this year to review the VESTRA submission; see press release.
Wachovia (WB) 65.60 -0.43: Chairman and Chief Executive Officer L.M. Baker Jr. today said that he has entered an amendment to the
First Union (FTU) merger agreement deleting any increase in retirement compensation for his benefit as part of the merger.
Sanmina (SANM) 34.01 +0.02: Company adopts shareholder rights plan designed to assure stockholders fair value in the event of a
future unsolicited business combination. SANM will issue a dividend of one right for each share of common stock. Trading floor rumors
were circulating earlier this month that Solectron (SLR) was considering making a bid for SANM. Sanmina added that the plan was not
adopted in response to any attempt to acquire the company, and that it is not aware of any such efforts; see press release.
Mandalay Resort (MBG) 26.39 -0.11: Reports Q1 earnings of $0.61 a share, $0.01 better than the First Call consensus of $0.60, vs
year-ago earnings of $0.58; revenues rose 5.6% to $669.08 mln from a year-ago of $633.67 mln; see press release. |
