3Com, Nike Report 2Q Earnings

Japan's Nikkei 225 has skidded more than 3% in early Friday trading. On these shores, there's a mixed bag of post-close news (earnings estimates from First Call):

3Com (COMS Quote - Cramer on COMS - Stock Picks) ruffled only a few feathers Thursday evening as it reported quarterly numbers that matched the warning it made earlier this month.

The networker posted second-quarter revenue of $1.22 billion, off from the year-earlier $1.42 billion (calculated on a pro-forma basis). Profits were $15.1 million, or 4 cents per share, compared with the year-ago $176.3 million, or 50 cents. The results matched the 30-analyst consensus estimate.

Shares of 3Com nosed slightly southward after hours; according to Reuters Instinet, a light-volume trade moved at 32 1/2 (compared with the closing price of 33 1/8) slightly before 6 p.m. EST.

"Some optimists might have hoped for additional bullish prospects," said Bear Stearns analyst Eric Blachno after listening to the company's conference call. The report was "nothing earth-shattering," and Blachno does not expect to alter his current estimates or long-term buy rating on the stock.

Blachno said that in mid-November he recommended that the company take its "strong medicine" and slow shipments to reduce bloated inventories. 3Com announced such a strategy two weeks later, nearly erasing profits, and is still trying to repair the problem. Bear Stearns has no underwriting relationship with 3Com.

-- Kevin Petrie

Nike (NKE Quote - Cramer on NKE - Stock Picks) reported second-quarter earnings of 48 cents per share, 7 cents short of the 18-analyst estimate and down from the year-ago 60 cents. The company also set a buyback of up to $1 billion worth of its shares. Nike is no stranger to earnings struggles, as TheStreet.com reported in a Sept. 17 story and a Sept. 19 follow-up.

A Food and Drug Administration panel voted against approval of Chiron's (CHIR Quote - Cramer on CHIR - Stock Picks) Depocyte drug for neoplastic meningitis. The drug was developed by DepoTech (DEPO Quote - Cramer on DEPO - Stock Picks).

Western Staff Services (WSTF Quote - Cramer on WSTF - Stock Picks) reported fourth-quarter earnings of 50 cents per share, 5 cents higher than the four-analyst projection and up from the year-ago 40 cents.

Manugistics (MANU Quote - Cramer on MANU - Stock Picks) reported third-quarter earnings of 15 cents per share, 2 cents better than the 10-analyst outlook and up from the year-ago 8 cents.

Adobe Systems (ADBE Quote - Cramer on ADBE - Stock Picks) reported fourth-quarter operating earnings of 56 cents per share, a penny ahead of the 15-analyst expectation and up from the year-ago 49 cents.

Hartford Financial Services Group (HIG Quote - Cramer on HIG - Stock Picks) set a buyback of up to $1 billion worth of its shares.

Autodesk (ADSK Quote - Cramer on ADSK - Stock Picks) upped its share-buyback authorization by 9 million shares to a total of 11 million shares over the next two years.

Bechtel Jacobs, a joint venture of Jacobs Engineering Group (JEC Quote - Cramer on JEC - Stock Picks) and Bechtel National, said it received a 5 1/2-year, $2.5 billion environmental-restoration contract from the Energy Department.

Cylink (CYLK Quote - Cramer on CYLK - Stock Picks) said it became the first hardware vendor approved by the Commerce Department to export 168-bit encryption without key recovery to Europe, specifically to European central banks.

Great Plains Software (GPSI Quote - Cramer on GPSI - Stock Picks) reported second-quarter earnings of 15 cents per share, 2 cents better than the two-analyst outlook and up from the year-ago 7 cents.

Briggs & Stratton (BGG Quote - Cramer on BGG - Stock Picks) said it expects to report second-quarter earnings short of the four-analyst expectation of 67 cents per share. The company earned 58 cents a year earlier. Briggs & Stratton cited the impact of the strong U.S. dollar on sales in the European Union and a shift in the mix of engines it shipped in the second quarter.

Universal Forest Products (UFPI Quote - Cramer on UFPI - Stock Picks) said it expects to break even in the fourth quarter, missing the four-analyst estimate of 12 cents. That would have matched the year-ago figure. The company cited margin pressure in the manufactured housing truss business and declining lumber prices.

Reptron (REPT Quote - Cramer on REPT - Stock Picks) said it expects to report fourth-quarter earnings of 6 cents to 10 cents per share, not the 29 cents called for in the four-analyst forecast. The company, which earned 36 cents a year earlier, cited an industry slowdown that restricted distribution sales growth.

Ultrak (ULTK Quote - Cramer on ULTK - Stock Picks) said it expects to report fourth-quarter operating earnings of 3 cents to 5 cents per share, missing the one-analyst estimate of 15 cents and the year-ago 19 cents. The company cited softer-than-expected sales and higher-than-expected expenses.

Periphonics (PERI Quote - Cramer on PERI - Stock Picks) reported second-quarter earnings of 7 cents per share, 4 cents shy of the three-analyst view and down from the year-ago 22 cents. The company said it expects an improved growth rate in the second half of its fiscal year.

Cherry (CHERA Quote - Cramer on CHERA - Stock Picks) reported third-quarter earnings of 50 cents per share, 3 cents better than the lone analyst's expectation but down from the year-ago 58 cents.

Gibraltar Steel (ROCK Quote - Cramer on ROCK - Stock Picks) backed a fourth-quarter estimate range of 26 cents to 29 cents per share, compared with the five-analyst prediction of 28 cents versus the year-ago 33 cents. The company also backed the full-year 1998 estimate of $1.62.

Merchant bank Castle Harlan agreed to buy the Tidewater Compression unit of Tidewater (TDW Quote - Cramer on TDW - Stock Picks) for $360 million.

IBM (IBM Quote - Cramer on IBM - Stock Picks) and Storage Technology (STK Quote - Cramer on STK - Stock Picks) said they reached an agreement with the Justice Department that ends an 18-month investigation and allows the companies to continue working together on disk storage products.

Sherwin-Williams (SHW Quote - Cramer on SHW - Stock Picks) backed the 11-analyst fourth-quarter estimate of 26 cents per share versus the year-earlier 23 cents.

Physicians Resource Group (PRG Quote - Cramer on PRG - Stock Picks) is facing a shareholder lawsuit that accuses the company of artificially inflating its stock price through misleading statements.

CVB Financial (CVB Quote - Cramer on CVB - Stock Picks) set a 3-for-2 stock split.

Penford (PENX Quote - Cramer on PENX - Stock Picks) said it would delay the spinoff of its Penwest Pharmaceuticals unit, citing market conditions.