Company Report: Earnings Season Marches in Like a Lion

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Microsoft (MSFT) - Get Report fell 8 5/16, or 7.2%, to 107 after it reported on Tuesday night its second-quarter earnings of 47 cents a share, which excludes a charge, up from the year-ago 36 cents. Including the charge, net income was 44 cents. The 3-cent charge is related to the settlement of a lawsuit filed against Microsoft by Caldera. The First Call/Thomson Financial 24-analyst estimate projected the company would earn 42 cents.

Also, Microsoft filed its proposed conclusions of law in the

Justice Department's

antitrust case, arguing that the findings of fact issued by

Judge Thomas Penfield Jackson

in November don't amount to an antitrust violation. Earlier today,

Merrill Lynch

raised its fiscal 2000 EPS estimate on Microsoft to $1.69 per share from $1.60 and its fiscal 2001 estimates to $1.90 per share from $1.78.

Merrill Lynch upped its rating on

Terayon Communications Systems

(TERN)

to intermediate-term buy from accumulate and raised its fiscal 2000 EPS estimate 13 cents a share from a 6-cent loss and its 2001 estimate to 40 cents a share from 35 cents.

Last night, the company's

fourth-quarter earnings report edged out analysts' consensus number. Shares of Terayon popped 26 15/16, or 33.8%, to 107 1/16.

Mergers, acquisitions and joint ventures

America Online

(AOL)

gained 3 1/4, or 5.3%, to 64 1/2 after it and CCBN.com said they formed a corporate communication pact.

Boeing

(BA) - Get Report

rose 2 5/8, or 5.8%, to 47 5/8 after CEO Phil Condit said the aerospace giant would consider mergers and alliances with European partners in the defense industry.

Cisco

(CSCO) - Get Report

added 1/4 to 112 5/16 after it said it is buying privately held

Altiga Networks

of Franklin, Mass., and

Compatible Systems

of Boulder, Colo., for a total of $567 million in stock.

Chevron

(CHV)

sank 1 1/4 to 88 1/16 and

Ariba

(ARBA)

jumped 6 13/16 to 186 1/8 after the companies said they were teaming up to create an energy business online marketplace.

Dayton Superior

(DSD)

climbed 5 9/16, or 30.2%, to 24 after it said it signed a $315 million merger deal with

Stone Acquisition

, a unit of

Odyssey Investment Partners

.

Fertilizer producer

Agrium

said it would buy the agricultural products division of

Unocal

(UCL)

for $325 million in cash, shares and debt. Shares of Unocal climbed 1/4 to 33.

Sun International Hotels

(SIH)

rose 3 1/16, or 15.9%, to 22 3/8 after it reported fourth-quarter earnings of 34 cents a share, beating the nine-analyst estimate of 31 cents but down from the year-ago 38 cents. The company said it received a $24-a-share cash offer from

Sun International Investments

, which currently owns 53% of the company.

Transmeta

, a Silicon Valley startup, launched a new family of mobile processors, saying the devices will revolutionize mobile computing. Transmeta, which counts Linux system creator Linus Torvalds among its employees, announced two new processors which it said will be made by

IBM

(IBM) - Get Report

. Shares of IBM slipped 1/4 to 115 1/2.

Volvo Aero

and

General Electric

(GE) - Get Report

said they have entered into a military cooperation deal involving engines for F-18 fighter jets. GE inched up 23/32 to 148 23/32.

VTech Holdings

is buying

Lucent Technologies'

(LU)

consumer telephone manufacturing assets for $113 million. Lucent inched up 1 1/8 to 51 5/8.

Warner-Lambert

(WLA)

has held preliminary talks with

Procter & Gamble

(PG) - Get Report

in an effort to find a white knight to hold off a hostile bid for it by

Pfizer

(PFE) - Get Report

,

The Wall Street Journal

reported. The discussions have centered on P&G potentially buying Warner and perhaps its merger partner

American Home Products

(AHP)

, the newspaper reported, citing people familiar with the situation. The

Journal

said it wasn't clear, however, the level of P&G's interest or whether the discussions are continuing. Also, Warner and AHP have approached

Bristol-Myers Squibb

(BMY) - Get Report

about a three-way deal, but Bristol-Myers wasn't interested, the newspaper said. Warner gained 4 7/8, or 5.4%, to 94 7/8, Pfizer edged up 1/2 to 37, American Home gained 1 13/16 to 46, Procter & Gamble slipped 1 3/8 to 115 3/16 and Bristol-Meyers fell 1 1/4 to 64 1/16.

Meanwhile, Warner posted fourth-quarter earnings of 55 cents a share, ahead of the 23-analyst estimate of 52 cents and up from the year-ago 40 cents.

Earnings/revenue reports and previews

(

Earnings estimates from First Call; new highs and lows on a closing basis unless otherwise specified. Earnings reported on a diluted basis unless otherwise specified.

)

AMR

(AMR)

, the parent of

American Airlines

, fell 1/2 to 59 3/8 after it posted fourth-quarter earnings of 69 cents a share, beating the 11-analyst estimate of 61 cents a share but below the year-ago earnings of $1.00. AMR's CFO said he was hopeful the company is still on track for a spinoff of

Sabre

(TSG) - Get Report

in the first quarter, and also said he was cautiously optimistic about American Airline's business outlook for 2000.

Separately, Sabre slipped 7/8 to 47 after it reported fourth-quarter earnings of 32 cents, in line with the five-analyst estimate and up from the year-ago 19 cents.

Ask Jeeves

(ASKJ)

popped 5 3/4, or 6%, to 102 after it reported a fourth-quarter loss of 56 cents a share, narrower than the three-analyst expected loss of 63 cents, but wider than the year-ago loss of 30 cents.

Bear Stearns

(BSC)

gained 1 to 43 after it posted second-quarter earnings of $1.64 a share, well above the five-analyst estimate of $1.20 and the year-ago 80 cents a share.

Chase Manhattan

(CMB)

climbed 3 1/8 to 74 1/8 after it posted fourth-quarter earnings of $1.97 a share, well above the 20-analyst estimate of $1.32. The company also set a $5 billion stock buyback.

Citrix Systems

(CTXS) - Get Report

climbed 2 7/16 to 155 after it posted fourth-quarter earnings of 38 cents a share, a penny better than the 10-analyst estimate and up from the year-ago 27 cents. The company said its board approved a 2-for-1 stock split.

Delphi Automotive Systems

(DPH)

lost 7/8 to 17 3/4 after it reported fourth-quarter earnings of 48 cents a share, ahead of the 12-analyst estimate of 46 cents.

Donaldson Lufkin & Jenrette

(DLJ)

lost 1 to 48 3/4 after it reported fourth-quarter earnings of $1.35 a share, well above the eight-analyst estimate of $1.11 and the year-ago earnings of 47 cents.

E*Trade

(EGRP)

dropped 1 11/16, or 6.1%, to 26 3/16 after it reported a first-quarter loss of 15 cents a share, narrower than the 13-analyst expected loss of 21 cents and the year-ago loss of 11 cents.

FleetBoston Financial

(FBF)

fell 3/4 to 31 1/8 after it reported fourth-quarter operating earnings of 76 cents a share, a penny ahead of the 24-analyst estimate and up from the year-ago 65 cents.

Health Care Properties

(HCP) - Get Report

added 7/16 to 25 5/8 after it posted fourth-quarter funds from operations of 82 cents a share, in line with the 10-analyst estimate and a penny better than the year-ago earnings.

Hertz

(HRZ)

gained 1 3/8 to 50 13/16 after it posted fourth-quarter earnings of 56 cents a share, beating the 10-analyst estimate of 52 cents and the year-ago earnings of 44 cents.

Honeywell

(HON) - Get Report

dropped 4 3/4, or 8.1%, to 54 1/4 after it reported fourth-quarter earnings of 78 cents a share, in line with the 11-analyst estimate and up from the year-ago earnings of 69 cents.

Hubbell

(HUB.B)

inched up 5/8 to 28 3/4 after it posted fourth-quarter earnings of 42 cents a share, in line with the eight-analyst estimate but down from the year-ago 63 cents a share.

Johnson Controls

(JCI) - Get Report

dropped 1 9/16 to 57 3/16 after it posted first-quarter earnings of $1.06 a share, a penny ahead of the five-analyst estimate and up from the year-ago 86 cents.

Knight/Trimark Group

(NITE)

fell 1 11/16 to 37 5/16 after it reported fourth-quarter net income of 50 cents a share, which includes a 4 cent reduction in earnings related to its acquisition of

Arbitrade Holdings

. The 11-analyst estimate called for Knight/Trimark to earn 40 cents. In the year-ago period, Knight/Trimark earned 17 cents.

Modine Manufacturing

(MODI)

was unchanged at 25 after it posted third-quarter earnings of 55 cents a share, falling below the single-analyst estimate of 61 cents and down from the year-ago 58 cents.

Old Kent Financial

(OK)

shed 9/16 to 32 3/16 after it posted fourth-quarter earnings of 60 cents a share, in line with the 15-analyst estimate and up from the year-ago 52 cents, which excluded charges.

Paradyne Networks

(PDYN)

added 2 13/16, or 8.7%, to 35 after it posted fourth-quarter pro forma earnings of 9 cents a share, beating the five-analyst estimate of 6 cents a share and up from the year-ago 3-cent loss.

Spyglass

(SPYG) - Get Report

skidded 3 3/8, or 6.4%, to 48 5/8 after it reported a loss of 4 cents a share, which excludes a gain and a nonrecurring charge, narrower than the three-analyst estimate of a loss of 5 cents and narrower than the year-ago loss of 11 cents.

Summit Bancorp

(SUB) - Get Report

was unchanged at 30 after it reported fourth-quarter earnings of 73 cents a share, a penny better than the 16-analyst estimate and up from the year-ago earnings of 67 cents.

Sysco

(SYY) - Get Report

slid 15/16 to 38 3/16 after it reported second-quarter earnings of 31 cents, in line with the three-analyst estimate and up from the year-ago 26 cents.

Terra

(TRRA)

lost 9 1/16, or 8.9%, to 91 1/4 after its CEO, Juan Perea, said at a news conference that the company would receive roughly 20% of its revenue from its new U.S. Internet service in three to four years. Perea did not provide any earnings outlook but said the company told investors before its November IPO that it expected "positive" EBITDA and 150% annual revenue growth to 2003.

UAL

(UAL) - Get Report

, parent of

United Airlines

, popped 15/16 to 62 5/8 after it said its fourth-quarter fully distributed earnings came in at $1.91 a share, excluding one-time items, well above the 11-analyst estimate of $1.75 a share. However, the company said first-quarter fully distributed earnings were expected to range between 80 cents and $1.20 a share, which would fall below the current six-analyst estimate calling for UAL to earn $1.27 in the first quarter.

US Airways

(U) - Get Report

advanced 5/16 to 25 7/16 after it reported fourth-quarter results of a 68-cent loss, wider than the 10-analyst estimate of a 63-cent loss and down from the year-ago $1.18 profit.

United Technologies

slid 2 1/16 to 60 11/16 after it posted fourth-quarter earnings, before restructuring and other charges, of 70 cents a share, beating the 17-analyst estimate of 67 cents.

Vastar Resources

(VRI)

fell 1/16 to 59 1/8 after it posted fourth-quarter earnings of 76 cents a share, beating the 11-analyst estimate of 72 cents and the year-ago 18 cents.

Wachovia

(WB) - Get Report

retreated 7/16 to 65 15/16 after it reported fourth-quarter earnings of $1.30 a share, in line with the 24-analyst estimate and up from the year-ago $1.19.

Weyerhaeuser

(WY) - Get Report

declining 3 5/16 to 63 1/4 after it posted fourth-quarter earnings of 81 cents a share, excluding items, far short of the 15-analyst estimate of 92 cents but above the year-ago 38 cents.

Offerings and stock actions

Men's Wearhouse

(SUIT)

bounced 3/16 to 26 after it said it set a 1 million-share stock repurchasing program.

Ocean First Financial

(OCFC) - Get Report

tacked on 3/8 to 16 1/2 after it said it intends to repurchase up to 1.26 million shares, or 10% of its outstanding common stock.

Analyst actions

Warburg Dillon Read

started coverage of

Accredo Health

(ACDO)

with a buy rating and a 12-month price target of 38. Shares of Accredo Health hopped 2 1/4, or 7.4%, to 32 1/2.

Merrill Lynch

placed

Biogen

(BGEN)

on its "Focus One" list, stating that the stock "has one of the more compelling valuations among the big-cap biotechs." Shares of Biogen moved up 5 9/16, or 6.7%, to 88 1/16.

Warburg reiterated its buy rating and price target of 70 on

Citigroup

(C) - Get Report

. Shares of Citigroup added 1 1/4 to 59 3/4.

Warburg raised its 2000 earnings view on

Champion International

(CHA) - Get Report

to $4.00 from $3.50. Shares of Champion added 1 3/8 to 62.

Deutsche Banc Alex. Brown

raised earnings estimates on

Delta Airlines

(DAL) - Get Report

, while it lowered earnings estimates on

Continental Airlines

(CAL) - Get Report

and

Southwest Airlines

(LUV) - Get Report

for the quarter ending March.

Delta's third-quarter estimate was upped to $1.20 a share from $1.15.

Continental's first-quarter estimate was sliced to 20 cents a share from 65 cents.

Southwest's first-quarter estimate was lowered to 15 cents a share from 20 cents.

Shares of Delta lost 1 3/8 to 50 3/4; Continental slipped 2 5/8, or 6.8%, to 35 15/16 and Southwest fell 1/4 to 15 1/2.

US Bancorp Piper Jaffray

cut its fiscal 2000 loss estimate for

Doubleclick

(DCLK)

to 13 cents from 18 cents. Shares of Doubleclick gained 4 to 126 3/4.

Credit Suisse First Boston

rolled out coverage of

El Sitio

(LCTO)

with a strong buy rating and a price target of 35. Shares of El Sitio tacked on 1 3/16 to 35 1/4.

Banc of America

downgraded shares of

Galileo Technology

(GALT) - Get Report

to buy from strong buy.

Credit Suisse First Boston

maintained its buy rating on the stock and raised its price target to 38 from 33.

After yesterday's close, Galileo posted

fourth-quarter earnings a penny better than the analyst consensus number. Galileo Technology dipped 7 3/4, or 26.1%, to 21 15/16.

Warburg upped its 12-month price target on

Juniper Networks

(JNPR) - Get Report

to 155 from 128. Shares of Juniper popped 3/8 to 119.

Soundview Technologies

raised its rating on

Pericom Semiconductor

(PSEM)

to strong buy from buy and its price target to 45 from 32. Pericom shares edged up 7 1/8, or 21.8%, to 39 7/8.

Brown Brothers Harriman

raised its rating on

Rockwell

(ROK) - Get Report

to short-term buy from neutral. Shares of Rockwell climbed 1 3/16 to 51 15/16.

CSFB said it upped its price target on

Teradyne

(TER) - Get Report

to 95 and upped its fiscal 2000 EPS estimate to $2.35 from $1.60 and its 2001 earnings estimate to $2.70 per share from $2.00. Shares of Teradyne lifted 7 9/16, or 10.8%, to 77 1/4.

Goldman Sachs

upped

Whirlpool's

(WHR) - Get Report

1999 earnings estimate to $5.35 a share from $5.25 and its 2001 EPS estimate to $6.30 from $5.95 a share. Shares of Whirlpool gained 5/16 to 59 5/8.

PaineWebber raised its price target on

Xilinx

(XLNX) - Get Report

to 55 from 45. Shares of Xilinx shed 2 11/16, or 5.5%, to 45 13/16.

Miscellany

Beyond.com

(BYND) - Get Report

tacked on 1/2, or 6.3%, to 8 1/2 after it said CEO and president Mark Breier resigned and named CFO Rick Neely as interim CEO. Beyond announced a restructuring and said it sees charges of $2 million to $3 million in the first quarter.

An arbitrator ruled that

Caterpillar

(CAT) - Get Report

misappropriated technology intended to reduce emissions of nitrogen oxides,

The Wall Street Journal

reported. According to the story, the arbitrator concluded Caterpillar engaged in "fraudulent and deceitful conduct" when it improperly patented and sought to market clean-fuel technology for diesel engines that belonged to

A-55

, a small Reno, Nev.-based company and former joint-venture partner of Caterpillar. Shares of Caterpillar lost 5/8 to 49 5/16.

FDX

(FDX) - Get Report

, parent of

FedEx

, announced it's ditching the FDX name and going to go by FedEx from now on. The company also announced a new low-cost residential delivery service,

FedEx Home Delivery

, which it plans to begin in many major U.S. markets in March. Shares of FDX added 1/16 to 44 1/4.

Wallace Computer Services

(WCS)

said chairman and CEO Robert Cronin, 55, is immediately retiring from the company and its board of directors for personal reasons. President and COO Michael Duffield will assume interim responsibilities as CEO. Shares of Wallace Computer Services climbed 1/16 to 16.

The Heard on the Street column in the

Journal

took a look at the

New York Stock Exchange's

future prospects as it faces increasing competition from electronic communications networks. At a recent closed-door meeting in New York, with no Big Board officials present, a group of senior executives culled from various Wall Street firms and mutual funds discussed how the stock market's structure will evolve as a growing number of trades are done electronically by both individual investors and large brokerage firms.