TriQuint Semi (TQNT) 21.40 -3.41: Dain Rauscher Wessels downgrades to BUY AGGRESSIVE from STRONG BUY AGGRESSIVE and lowers price target to $27 from $40; firm says that technological strategy positions TriQuint well for next generation wireless handset RF transceiver modules; however, the difficult current environment and the company's merger with Sawtek (and Sawtek's lowered expectations) is leading to additional reductions in forward estimates.
Broadwing (BRW) 25.98 +0.18: Thomas Weisel initiates coverage with a BUY rating and price target of $37; believes that Broadwing, with the integration largely behind it, has the right combination of assets to survive the rationalization of the telecommunications industry and begin to compete effectively on a nationwide basis against the larger carriers.
Korn/Ferry Int'l (KFY) 22.20 +0.35: Recruitment firm announces that Paul C. Reilly has been named Chairman and Chief Executive Officer, effective June 30, 2001; previously Reilly served as CEO at KPMG International; see press release.
Guilford Pharm (GLFD) 23.80 +0.96: UBS Warburg initiates coverage with a BUY rating and a 12-month price target of $28 based on increasing sales of GLFD's only marketed product, GLIADEL Wafer (with expected sales of $20.4 mln in 2001 and $26.3 mln in 2002), significant clinical development including AQUAVAN, which could come to market by 2004, and additional clinical trials to commence in late 2001.
Cephalon (CEPH) 62.25 -0.90: UBS Warburg initiates coverage with a BUY and a 12-month price target of $80 based on strong expected sales of PROVIGIL, positive results from ongoing label expansion trials for PROVIGIL, and positive news flow from the company's two main clinical products, CEP-701 and CEP-1347.
Community Health (CYH) 22.45 +0.45: Goldman Sachs initiates coverage with a RECOMMENDED LIST rating and price target of $34; believes that CYH's internal and external growth opportunities, combined with its strong operational momentum, should produce high and sustainable growth in revenue, operating profits, and earnings over the next several years.
Intuit (INTU) 33.65 +0.30: E-finance company announces a strategic alliance with Sallie Mae (SLM), provider of education funding, in which Intuit will become the exclusive provider of personal finance software to more than seven million Sallie Mae customers; through this agreement, Sallie Mae customers will have the opportunity to purchase discounted Quicken software on line; see press release.
09:30 -- 10:00 ET (Updated throughout the hour)******
Caterpillar (CAT) 54.96 -0.04: ABN AMRO downgrades to HOLD from ADD as company's shares are becoming fully valued following YTD outperformance of major indices; Caterpillar rose 16.2% YTD versus a 2.4% YTD decline in the S&P 500 and a 3.0% YTD increase in the Dow 30 Industrials; continues to view the company's long-term operating strategy positively.
Goldman Initiations : -- Correction -- On the Up/Downgrades page earlier, we reported that Salomon Smith Barney initiated coverage on UHS, TRI, PRHC, and LPNT with OUTPERFORM ratings. That was incorrect -- Goldman Sachs initiated these stocks with OUTPERFORM ratings.
HCA-Healthcare (HCA) 36.18 delayed: Goldman Sachs initiates coverage with a RECOMMENDED LIST rating and price target of $48; by capitalizing on its favorable market position to drive modest operational gains and by leveraging its significant free cash flow generation to repurchase shares, firm believes that HCA can drive sustainable EPS growth of 15% over the next several years.
Georgia-Pacific (GP) 35.43 delayed: JP Morgan upgrades to BUY from MARKET PERFORM and raises price target from $35 to $46; firm's confidence has increased as high debt levels subside and company reaps benefits of strong wood market; also valuation of stock is attractive versus its peers.
BEFORE THE OPEN (Updated throughout the hour)******
RoweCom (ROWE) 0.98: Company announces that it has signed a letter of intent to be acquired by divine (DVIN 2.03); agreement provides for a stock-for-stock exchange in which RoweCom shareholders will receive three quarters of a share of divine common stock for each share of RoweCom; see press release.
Men's Wearhouse (MW) 25.01: Apparel retailer reports Q1 earnings of $0.31 a share, in line with the First Call consensus, vs year-ago earnings of $0.32; revenues rose 5.8% to $304.65 mln from a year-ago of $287.88 mln; due to difficulty in predicting the timing and velocity of a strengthening economy, company believes that Q2 and FY01 earnings per share performance will be at the lower end of current expectations; see press release.
Profit Recovery (PRGX) 7.72: Merrill Lynch upgrades to near-term ACCUMULATE/long-term BUY from near-term NEUTRAL/long-term ACCUMULATE due to anticipated improvement in the operating fundamentals of the business.
Tenet Healthcare (THC) 42.99: Goldman Sachs initiates coverage with a RECOMMENDED LIST rating and price target of $55; firm believes that at current levels, THC shares offer investors a compelling risk/return trade-off given company's operational momentum, its strong free cash flow, potential for EPS outperformance and positive revisions to earnings.
Wet Seal (WTSLA) 33.00: Specialty retailer reports Q1 earnings of $0.39 a share, $0.01 better than the First Call consensus of $0.38, vs year-ago earnings of $0.18; revenues rose 5.6% to $137.91 mln from a year-ago of $130.60 mln. "Our earnings improvement compared to last year resulted largely from an increased initial mark up and lower markdowns. As a company, we have undertaken a strategic initiative to improve initial mark up through better sourcing opportunities and relationships. The lower markdowns compared to last year were the result of better same store sales and a more balanced inventory throughout the quarter," said CEO; see press release.
eBay (EBAY) 60.90: Goldman Sachs believes company is on track to meet or exceed Q2 revenue estimate of $163.4 mln and earnings estimate of $0.07 per share; cites solid international and Half.com growth and stable domestic metrics; continues to believe eBay is a core Internet holding with a RECOMMENDED LIST rating.
Patterson Dental (PDCO) 34.03: Reports Q4 earnings of $0.31 a share, in line with the First Call consensus, vs year-ago earnings of $0.27; revenues rose 9.4% to $305.12 mln from a year-ago of $278.84 mln; operating results continued to be driven by strong sales in the U.S. dental supply market, which increased 11.2% in Q4 and nearly 15% on a comparable basis for the full year; see press release.
Ontrack Data (ONDI) 7: Data recovery services provider warns Q2 will be a loss of $0.11-0.15, current First Call estimate is $0.07 profit; expects revenues of $11-11.5 mln; cites customer feedback about the status of the mergers and acquisitions marketplace and softness in the company's retail software utility business; see press release.
Gap Inc (GPS) 32.43: Lehman Brothers upgrades to STRONG BUY from BUY and raises 12-month price target to $45 from $35; believes "best-in-class" retailer has reached an inflection point and is poised for a continued turnaround; cites improving comparable-store sales, a more defined and moderate store growth plan, tighter expense controls, key senior management changes, international growth and compelling valuation.
Barnes & Noble (BKS) 33.62: Bookseller reports Q1 loss of $0.12 a share, $0.02 better than the First Call consensus, vs year-ago of breakeven; revenues rose 12.9% to $1.01 bln from a year-ago of $0.89 bln; Barnes & Noble comparable store sales increased 2.3%, slightly below estimates, while Babbage's comparable store sales increased 13.2%, significantly above estimates; B. Dalton comparable store sales were down 1.8%; see press release.
Iomega (IOM) 2.91: Announces that its new Peerless 10GB and 20GB drive system is now shipping more than a month ahead of schedule; company says the new system marks the arrival of a new generation of portable high-speed storage devices; see press release.
Tommy Hilfiger (TOM) 13.71: Apparel designer and retailer reports Q4 earnings of $0.33 a share, in line with the First Call consensus, vs year-ago earnings of $0.37; reports diluted earnings per share of $0.37 including a reduction in the effective tax rate which increased earnings per share by approximately $0.04; revenues fell 0.7% to $472.00 mln from a year-ago of $475.30 mln; during the quarter, the company repurchased approximately 800,000 of its shares in the open market for approximately $11.1 mln, bringing the total repurchases to date to 6.2 mln shares at a cost of $61.2 mln; see press release.
Paper & Forest Product Downgrades : Salomon Smith Barney downgrades Boise Cascade (BCC 36.46), Intl Paper (IP 39.30), Mead (MEA 29.79) and Temple-Inland (TIN 53.96) to OUTPERFORM from BUY; cites the strong dollar and the recent runup in the paper stocks; sees 2003 as a peak for pulp and paper; maintains positive view on the group despite the limiting influence of the weak euro on the paper side.
Westvaco (W) 26.75: Packaging company reports Q2 earnings of $0.19 a share, $0.01 better than the First Call consensus, vs year-ago earnings of $0.70; revenues rose 1.8% to $921.10 mln from a year-ago of $904.66 mln; a decline in U.S. economic activity and the strong dollar led to weaker demand and lower prices for printing papers; higher fuel costs and increased maintenance expenses and lower production due to the acceleration of scheduled downtime had an impact on results; see press release.
American Eagle (AEOS) 38.16: Specialty retailer reports Q1 earnings of $0.21 a share, $0.01 better than the First Call consensus, vs year-ago earnings of $0.17; revenues rose 41.3% to $251.55 mln from a year-ago of $178.00 mln; comparable store sales increased 8.2% when compared to the same period last year; see press release.
AMR Corp (AMR) 38.55: American Airlines accepts the National Mediation Board's proffer of binding arbitration to resolve flight attendant contract issues; company says it was disappointed that talks with the Association of Professional Flight Attendants concluded today without reaching an agreement; see press release.
AFTER THE CLOSE (23-May-01)******
EMEX Corp (EMEX) 26.40 -2.86: Stock plunges to 15.50 after hours; Dow Jones and CNBC report that CSFB denies any involvement with a $100 mln financing deal announced April 9 which EMEX claimed was "arranged through the efforts of" CSFB. The Dow Jones story says that the company that offered the financing is Fieldstone Capital and that the financing is subject to contingencies.
Fiserv (FISV) 55.82 -1.47: Company announces plans to merge its two securities processing companies--Fiserv Securities and Fiserv Correspondent Services by September 2001; reaffirms Q2 revenue projections of $460-470 mln and EPS of $0.39-0.40, current First Call estimate is $0.40. However does announce plans to eliminate 300 jobs and closing its offices in Denver, Colorado, and Boca Raton, Florida; see press release.
Technitrol (TNL) 28.21 -0.79: Company announces that it has signed an agreement to acquire all of the capital stock of Excelsus Technologies, for $87.5 mln in cash; see press release.
Liz Claiborne (LIZ) 51.34 -0.45: Women's specialty retailer announces that it has completed the acquisition of privately held Mexx Group B.V; management indicates that the acquisition will have an impact on FY01 results, specifically expects the transaction to have no impact on second quarter EPS, to add $.03 to $.04 to third quarter EPS and to add $.01 to $.02 to fourth quarter EPS.
Active After Hours : Nasdaq 100 After Hours Indicator currently trading down 1.56...Stocks on the move (change vs. close) SAWS coming back a bit now down 1.76...SDRC now trading up 6.94.
Veritas DGC (VTS) 37.66 -0.34: Seismic data acquisition, data processing and multi-client data surveys provider reports Q3 earnings of $0.27 a share, $0.02 better than the First Call consensus estimate, vs year-ago earnings of $0.11; revenues rose 35.1% to $126.60 mln from a year-ago of $93.70 mln; see press release; see press release.
AutoZone (AZO) 32.58 -0.64: Reports Q3 earnings of $0.56 a share, $0.01 better than the First Call consensus of $0.55, vs year-ago earnings of $0.50; revenues rose 7.6% to $1.14 bln from a year-ago of $1.06 bln. Separately, Timothy D. Vargo, announced his intention to step down from his daily responsibilities as president and COO. Robert J. Hunt, executive vice president and CFO, has also announced his intention to retire from the day-to-day duties of CFO; see press release.
Northrop Grumman (NOC) 89.47 -0.73: Announces it has commenced its exchange offer for Newport News (NNS) shares. NOC's offer states that Newport News shareholders will be provided the option to receive for their shares $67.50 per share in cash or shares of NOC common stock designed to provide a value of $67.50 per share; see press release.
Alkermes (ALKS) 31.09 -1.01: Reports Q4 loss of $0.30 a share, $0.02 better than the First Call consensus of ($0.32); revenues rose 144.5% to $56.03 mln from a year-ago of $22.92 mln; see press release.
After Hours Action : Last trade and change from mkt close: SDRC 23.99 +6.43...SAWS 25.60 -2.65...TQNT 22.85 -1.96...HOTT 32.10 -2.16...RSTO 7.00 -0.10..ESRX 94.65 +1.70.
Electr Data Sys (EDS) 64.78 -0.06: -- Update -- EDS sees purchases as slightly dilutive to EDS in Q4 2001 and for 2002.
Electr Data Sys (EDS) 64.78 -0.06: -- Update -- Announced an agreement to purchase Structural Dynamics Research Corporation (SDRC 17.46 -0.48) for approximately $950 mln in cash, or $25.00 a share. The offer represents a 43% premium to today's close. Concurrent with the SDRC purchase, EDS will offer to buy the 14% of its Unigraphics Solutions (UGS 21.31 +0.06) subsidiary that is publicly held. The offer to the shareholders of UGS contemplates a price of $27.00 a share (27% premium) or total cash of approximately about $170 mln; see press release.
Restoration Hrdwr (RSTO) 7.10 +0.22: Reports Q1 loss of $0.39 a share; revenues fell 2.5% to $67.90 mln from a year-ago of $69.65 mln. Of the three analysts covering the issue, estimates range from ($0.16) to ($0.41) with a mean of ($0.26); see press release.
Hot Topic (HOTT) 34.26 -3.03: Reports Q1 earnings of $0.15 a share, $0.01 better than the First Call consensus of $0.14, vs year-ago earnings of $0.12; revenues rose 40.3% to $62.93 mln from a year-ago of $44.84 mln; see press release.
Express Scripts (ESRX) 92.95 -0.41: Announces 2-1 stock split; payable on Jun 22. Company also increases earnings guidance to the upper end of the current range of First Call earnings estimates. The current range of First Call earnings estimates for 2001 is $3.04 to $3.10. The current consensus mean is $3.07; see press release.
FirePond (FIRE) 2.25 +0.09: Reports Q2 loss of $0.40 a share, $0.02 worse than the First Call consensus of ($0.38); revenues fell 9.4% to $12.32 mln from a year-ago of $13.59 mln. Firepond recorded a total of three special charges totaling $10.4 mln in the qtr; see press release.
Sipex (SIPX) 12.96 -0.48: Announced the sale of the Fremont wafer fabrication facility to Calogic LLC, effective March 30, 2001. No financial details given; see press release.
Synopsys (SNPS) 60 -2.07: Reports Q2 earnings of $0.24 a share, $0.04 better than the First Call consensus of $0.20, vs year-ago earnings of $0.53; revenues fell 20.2% to $163.52 mln from a year-ago of $204.85 mln. SNPS sees revenues in Q3 of between $168 and $172 mln (vs consensus of $164.5 mln) and EPS between $0.25 and $0.29, in line with consensus mean of $0.27; see press release.
TriQuint Semi (TQNT) 24.81 -3.13: Briefing.com is hearing that Triquint is warning in its mid-qtr conference calls; Q2 reportedly seen at $0.03 EPS and $60-65 mln revenue vs consensus estimates of $0.11 and $71 mln. Triquint has previously agreed to acquire Sawtek (SAWS), which also warned this afternoon. TQNT trading down to 22.85 after hours.
Gymboree (GYMB) 4.93 -0.12: Reports Q1 loss of $0.01 a share, $0.01 better than the First Call consensus of ($0.02); revenues rose 23.2% to $124.00 mln from a year-ago of $100.63 mln. Company sees May 2001 comps +34%-38% over May 2000. GYMB warns for Q2; sees loss of $(0.18)-$(0.21) per share, vs consensus estimate of ($0.11). Management expects full-year 2001 results between $0.20 and $0.24, vs consensus mean of $0.22; see press release.
Cable Design (CDT) 15.14 -0.39: Reports Q3 earnings of $0.15 a share, $0.01 better than the First Call consensus of $0.14, vs year-ago earnings of $0.31; revenues fell 11.5% to $181.38 mln from a year-ago of $204.90 mln. Company to announce further reductions in personnel in June; see press release.
Eastman Kodak (EK) 47.47 -0.63: Company announces it will re-affirm Q2 guidance of $1.00 to $1.30 per share at Salomon Smith Barney's 5th Annual Imaging & Visual Media Forum in New York City tomorrow; see press release.
Sawtek (SAWS) 28 -3.71: Company warns for June qtr; sees revenues between $17 and $19 mln (vs consensus of $25.4 mln) and EPS of $0.06 to $0.08 versus the consensus of $0.18. SAWS cites continued slow down in the wireless communication sector; see press release.
J.D. Edwards (JDEC) 12.04 -0.59: Reports Q2 earnings of $0.03 a share, $0.07 better than the First Call consensus of ($0.04); revenues fell 6.2% to $216.66 mln from a year-ago of $231.05 mln; see press release. |
