Good news for techs today? Read this:
08:29 ET MTH Meritage Corp sets 2 for 1 split to be paid April 26 (63.30)
08:28 ET BBOX Black Box warns for Q4 (51.87)
Lowers Q4 outlook to a range of $0.71-$0.72 (consensus $0.78).
08:25 ET IWOV Interwoven upgraded at Fulcrum (5.37)
Fulcrum upgrades to BUY from Sell with a price target of $8; despite uncertainty over Q1 results and expectations that the co will reduce 2002 guidance, firm believes that the stock now reflects lowered Street expectations and that two new product releases should lead to improved 2H02 performance.
08:24 ET MMS MAXIMUS cuts MarQ guidance (30.79)
Reduces MarQ outlook to the $0.30 a share range, compared to consensus of $0.42. MMS attributes weakness to a loss on a certain east coast project.
08:23 ET GMST Gemstar-TV Guide downgraded by CIBC after 10K (14.36)
CIBC World Markets downgrades to HOLD from Buy; cites accounting treatment of two items in last night's 10K filing: company recognized over $100 mln in revenues over last 29 months from SFA though GMST hasn't received any cash yet; also recognized $20 mln in ad revenue from a barter transaction.
08:22 ET Opening Indications
The pre-market indicators are off the worst level of the morning but remain positioned for a weaker open. The S&P 500 futures are 5.7 points below fair value and the Nasdaq 100 futures are 23 points below fair value.
08:17 ET CHTR Charter Comm downgraded at DBAB (11.36)
DB Alex. Brown downgrades to BUY from Strong Buy based on a more cautious stance on the cable industry in general, as well as a lower expected long-term growth rate and increased annual capex assumptions after 2003 for CHTR specifically; firm lowers price target to $18 from $24.
08:13 ET BBY Best Buy beats by a penny; Q1 guidance appears light (79.48)
Reports Q4 net of $1.62 a share, $0.01 better than consensus, vs yr-ago EPS of $0.89. Sales rose 28% to $6.98 bln (consensus $6.97 bln). Although co states that Q1 sales have modestly exceeded original expectations, its Q1 guidance of $0.30-$0.32 is below First Call and Multex consensus estimates of 0.34. BBY continues to expect 2003 earnings of $3.15-$3.25 (consensus $3.15).
08:10 ET HAL Halliburton estimates cut at Morgan Stanley (16.76)
Morgan Stanley cuts 2002 ests to $0.78 from $1.05 based on the decline in US gas-directed drilling activity, pricing and margin pressures in several North American product/service lines, and anecdotal evidence of execution problems on the Barracuda/Caratinga project. The firm also expects volatility in the shares around the April 4 asbestos hearing. Price target is $25.
08:04 ET CC Circuit City matches estimate; forecasts Q1 loss (18.12)
Reports Q4 net of $0.73 a share, in line with consensus, vs yr-ago EPS of $0.49. Earnings per CarMax Group (KMX) were $0.17 a share, also in line with the Multex consensus. For Q1, Circuit City expects a "a mid- to high-single digit loss per share." Current consensus is for a $0.03 profit for Circuit City group. The loss includes an estimated reduction in the contribution from its operation given anticipated increases in funding costs and expenses associated with a planned new securitization agreement.
08:00 ET Q Qwest Comms: disclosures from last night's conference call (8.00)
Bear Stearns notes that 2 important disclosures came out of last night's conference call: under the new accounting rules, Q will write down $20-$30 bln of its existing $34.5 bln goodwill balance in Q2, which will negatively impact EPS by $12-$18 per share; also, the co revised its long distance re-entry schedule to Fall/Winter at the earliest, and as a result of the delay Bear Stearns anticipates Q will not generate material long distance rev in 2002 (already reflected in ests).
07:54 ET BMY Bristol-Myers plans to reduce wholesaler inventory (40.40)
Discloses it is developing a plan to reduce wholesaler inventory and that this action may have an adverse impact on future results.
07:52 ET Goldman Sachs cuts estimates for tech bellwethers
Goldman Sachs is cutting estimates for a number of technology bellwethers due to continued weakness in IT spending: reduces EMC rev/EPS ests to $1.27 bln/($0.05); reduces IBM rev est for Q1 and forward rev/EPS ests; reduces MSFT FY03 est to $1.95 from $2.05; reduces SEBL 2002 est to $0.50 from $0.57 and 2003 to $0.65 from $0.75; and reduces SUNW March Q3 rev est to $3.108 bln as well as Q4 and forward estimates.
07:51 ET CHIC Charlotte Russe raised to Buy at UBS (23.83)
UBS Warburg upgrades to BUY from Hold. Believes company has attractive long-term prospects growing its store base by 100% in the next 5 years and generating earnings growth in excess of 20% annually. Firm has a price target of $30.
07:47 ET Opening Indications
This morning's fair value figures -- S&P 500 fair value: 1147, closed 3 pts below fair value. Nasdaq 100 fair value: 1484, closed at fair value. Current indications: S&P 500 futures are -2.20 or 5.2 pts below fair value. Nasdaq 100 is -22.0, or 22 pts below fair value.
07:45 ET INVN InVision Tech allows others to manufacture its systems (40.79) -- Update --
In connection with the Transportation Security Administration order, InVision has agreed to grant to the TSA a limited license for other manufacturers to build CT-based EDS using InVision's technology. This royalty-bearing license will be in effect for two years, and limits a manufacturer to building CT-based EDS solely for sale to the TSA. A licensed manufacturer will not be permitted to impair InVision's supply chain in the execution of this license... INVN shares have traded up 5% in pre-market.
07:41 ET INFA Informatica upgraded by Solly on valuation (8.07)
Salomon Smith Barney upgrades to BUY from Outperform following 34% decline in stock since March 8. While firm is cutting estimates and price target, believes market is pricing in Armageddon. Firm's Q1 est goes to ($0.02) from $0.00 and FY02 is cut to $0.01 from $0.08. The price target is reduced to $11 from $15.
07:37 ET PSFT PeopleSoft falls 16%; SEBL and ORCL down 6% and 3% in sympathy (37.37)
07:31 ET INVN InVision Tech receives $148.6 mln order from DOT (40.79)
Announces that the Transportation Security Administration of the Department of Transportation has ordered 300 explosives detection systems, consisting of CTX 2500 and CTX 5500DS models, to be built from parts ordered in March. In addition, the TSA has ordered 100 more components kits. The TSA agreed to pay InVision $148.6 mln for the manufacture of equipment and the additional component sets. Order calls for delivery of 300 CTX explosives detection systems by the end of the third calendar quarter this year. Some of this equipment will be built outside of InVision's own factory, under a previously announced subcontract arrangement.
07:31 ET NUE Nucor downgraded at Merrill Lynch (62.83)
Merrill Lynch downgrades to Near-Term REDUCE/SELL from Neutral, saying that the co's premium valuation is excessive relative to 2003 operating margin forecasts and historical averages.
07:26 ET DIGE Digene Corp: FDA requests more info on DNA Pap test (36.50)
FDA informs company that its Pre-Market Approval Supplement application to market its Hybrid Capture DNA test is not approvable absent the FDA's receipt of an amendment to the PMAS application to provide certain additional information recommended by the FDA Advisory Panel on March 8. The FDA has requested additional data and analyses, an education program and a post-market study... Cytyc Corp (CYTC) is in the process of being acquired by DIGE.
07:23 ET SIVB Silicon Vlly Banc upgraded at Lehman (30.22)
Lehman upgrades to STRONG BUY from Mkt Perform, raises 2003 est to $1.90 from $1.65, and raises price target to $36 from $32; firm cites lower credit costs, deposit stability, much higher top-line results, and other intangible factors for the upgrade.
07:23 ET ULAB Unilab agrees to be acquired by Quest Diagnostics (25.00)
Provider of diagnostic testing services enters agreement to be acquired by Quest Diagnostics (DGX 82.79) for approx. $1.1 bln. Unilab holders may elect to receive $26.50 in cash, 0.3256 shares of Quest Diagnostics common stock or a combination of cash and stock. Based on Quest's closing price, the all-stock option values at ULAB at $26.956 per share.
07:19 ET NTBK NetBank cut to Hold by UBS on valuation (16.50)
UBS Warburg downgrades to HOLD from Buy based on price. NTBK has approached firm's $18 price target and now reflects a significant premium to traditional mortgage banking comparables. NTBK trades at 20.6x firm's 2003 est vs avg of 8x for the mortgage banks.
07:17 ET TYC Tyco Intl estimate cut by UBS (31.71)
UBS Warburg lowers FY02 EPS est to $3.00 from $3.20 to reflect a delayed recovery at TYC's Electronics unit (which now includes TyCom); maintains $57 price target and Strong Buy rating.
07:15 ET PSFT PeopleSoft downgraded after reducing guidance (37.37)
Both Goldman Sachs and CSFB are downgrading stock this morning after PSFT warned of disappointing Q1 results. PSFT sees EPS of $0.14 a share (consensus $0.15) and issued disappointing license revenue forecast of $130-$135 mln. Goldman Sachs expected license rev of $165 mln. Shortfall leads firm to downgrade stock to Mkt Outperform from Rec List. While firm believes that macro challenges played an important role, it is concerned by the magnitude of the miss. Goldman lowering its 2002 est to $0.68 from $0.77 and 2003 to $0.81 from $0.92.
07:13 ET AOL AOL Time Warner: Merrill Lynch finds 2 items of concern in 10-K (23.27)
Merrill Lynch sees limited downside in AOL shares, but few catalysts to move them higher. However, the firm notes two red flags in the co's recently-released 10-K: 1) either the Newhouse family or AOL Time Warner has the right to restructure the terms of the TWE/AN cable partnership, which could result in an EBITDA leakage of nearly $530 mln and could reduce Time Warner Cable's scale by nearly 2 mln subscribers, potentially reducing AOL Broadband's platform and shrinking the cable company in a consolidating world; 2) a restructuring of the TWE/AN partnership would most likely involve a restructuring of Road Runner, which would create a $4 bln valuation "leak", or roughly $1 per share.
07:08 ET BHE Benchmark Elec raises Q1/Q2 guidance (28.92)
Contract manufacturing co projects Q1 earnings of $0.21-$0.23 vs consensus of $0.17. BHE puts revenues at $320-$325 mln for the qtr (consensus $281.25 mln). Based on indications from its customers, BHE expects Q2 be comparable to or slightly improved from Q1 (consensus EPS $0.18)... Potential secondary plays to this news include SLR, SANM, JBL, PLXS, FLEX, ACTM.
06:53 ET European Markets
FTSE -0.46%, DAX -1.39% -- European stocks under pressure. Telecom underperforming. Nokia downgraded by CSFB. Some M&A-related reprieve in the oil sector. Airline shares hit by rising oil prices.
06:52 ET INET Instinet Group parent may return broker to fold -- FT (6.30)
The Financial Times reports that Reuters is considering buying back Instinet following recent plunge in shares. Reuters believes a further long-term slide could make Instinet worth buying back, at about $4 per share, for its cash alone. According to the article, Reuters is understood to be open to alternatives such as a trade sale of Instinet or a merger with another electronic broker.
06:51 ET Asian Markets
Nikkei +1.59%, Hang Seng -1.40% -- Asian markets mostly higher. Electronic component makers outperformed in Japan, while Sanmsung Electronics led Korea 3.4% higher. The Kospi pushed to its highest level in two years.
06:49 ET U.S. Markets
S&P futures trading at 1144.1, 2.9 points below fair value, Nasdaq 100 futures trading at 1473.5, 10.5 points below fair value. The 10-year note is down a tick at 5.430%. The dollar is firmer against the euro, but a tad weaker against the yen. |
