Company Report: PWJ, PFE, MER, DIR, EMC, More
(Earnings estimates from First Call/Thomson Financial; earnings reported on a diluted basis unless otherwise specified. New highs and lows on a closing basis unless otherwise specified.)
Financial, healthcare and large-cap technology stocks were all swept up in the broad rally that pulled major indices into the green.
PaineWebber
(PWJ)
gained 2 11/16, or 6.9%, to 41 1/2 after it posted first-quarter earnings of $1.16 a share, well ahead of the eight-analyst estimate of $1.09 and up from the year-ago $1.01.
Pfizer
(PFE) - Get Pfizer Inc. Report
rose 1 9/16 to 39 9/16 and gave the drug sector a healthy glow with first-quarter earnings that came in at 28 cents a share, well above the 20-analyst estimate of 25 cents and the year-ago 21 cents. The
American Stock Exchange Pharmaceutical Index
rose 2.6%.
Online broker
DLJdirect
(DIR)
also beat expectations, reporting first-quarter earnings of 13 cents a share, well above the eight-analyst estimate of 4 cents and the year-ago 7 cents.
TheStreet.com E-Finance Index
rose 15%.
TheStreet Recommends
Mergers, acquisitions and joint ventures
Merrill Lynch
(MER)
moved up 9 1/4, or 10.3%, to 99 1/2 and
HSBC Holdings
(HBC)
rose 13/16 to 57 3/16 after the companies set a partnership to create what the companies termed the first global online banking and investment services company. The new company, a 50-50 venture, will serve individuals worldwide, except in the U.S. HSBC and Merrill Lynch together will provide up to $1 billion in start-up capital. The company will be headquartered in London and will be launched later this year in the U.K., followed by Australia, Canada, Germany, Hong Kong and Japan. HSBC and Merrill said that they were not in negotiations for a possible merger.
Integrated electronics maker
Sanmina
(SANM) - Get Sanmina Corporation Report
lost 1 9/16 to 49 3/8 after it agreed to acquire competitor
Hadco
(HDC)
in a stock swap valued at about $984 million. Hadco popped 6 11/16, or 11%, to 67 3/16. Sanmina said each share of Hadco stock will be converted into 1.4 shares of Sanmina stock.
Earnings/revenue reports and previews
EMC
(EMC)
, a provider of enterprise storage systems, software and services, gained 5 3/8 to 129 7/8 after it posted first-quarter earnings of 30 cents a share, a penny ahead of the 22-analyst estimate and up from the year-ago 20 cents.
Caterpillar
(CAT) - Get Caterpillar Inc. Report
fell 11/16 to 40 1/4 after it posted first-quarter earnings of 73 cents a share, beating the 16-analyst estimate of 58 cents and up from the year-ago 57 cents.
Internet advertising giant
DoubleClick
(DCLK)
dropped 8 3/16, or 13.7%, to 51 5/8 after it late yesterday reported a first-quarter loss of 11 cents a share, in line with the 22-analyst estimate but wider than the year-ago loss of 6 cents a share. The company posted a net loss of $13.1 million, compared with a loss of $6.1 million a year ago. However, revenues nearly tripled, to $110.1 million compared with $39.4 million in the year-ago period.
The company recently
iced a plan to identify and distribute the names of Web site visitors amid mounting criticism over how some Internet companies gather and use personal information.
Efficient Networks
(EFNT)
, a developer and supplier of high-speed digital subscriber line equipment, fell 2 11/16 to 85 5/16 after it posted a third-quarter operating loss of 16 cents a share, worse than the seven-analyst estimate of a loss of 6 cents, and down from the year-ago loss of 12 cents.
Kaiser Aluminum
(KLU)
climbed 7/8, or 25.9%, to 4 1/4 after it reported first-quarter earnings of 15 cents a share, which includes a gain. The nine-analyst estimate forecasted the company to report an 8-cent profit. The results compare to the year-ago report of a 48-cent loss.
Mallinckrodt
(MKG)
inched up 5/16 to 26 13/16 after it posted third-quarter earnings of 83 cents a share, well above the seven-analyst estimate and year-ago earnings of 75 cents. The health care company said it sees 2000 EPS at the upper end of the $2.65-to-$2.70 range, above expectations of $2.62 a share.
Reuters
(RTRSY)
, the news and information company, dropped 3 13/16 to 99 after it said first-quarter revenue rose to $1.3 billion, up from the year-ago $1.2 billion, powered by solid results from its
Instinet
electronic trading business.
Sprint
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gained 1 to 57 3/4 after it posted first-quarter earnings of 50 cents a share, including a 2-cent gain, edging out the 12-analyst estimate of 47 cents. The results compare to the year-ago 49-cent profit.
Tellabs
(TLAB)
tacked on 6, or 13.9%, to 49 5/16 after it posted first-quarter operating earnings of 26 cents a share, in line with the 23-analyst estimate and up from the year-ago 24 cents. Earlier this month, the telecommunications equipment company issued an earnings warning.
Texas Instruments
(TXN) - Get Texas Instruments Incorporated Report
slipped 1/2 to 148 1/2 after it late yesterday reported first-quarter earnings of 55 cents a share, above the 27-analyst estimate of 53 cents and the year-ago 34 cents. The company said strong demand for wireless communications chips helped boost net income by 69%. Texas Instruments said it expects robust growth to continue in its semiconductor business, driven by strength in communications end-equipment markets, including wireless and broadband.
Offerings and stock actions
Genzyme Molecular Oncology
(GZMO)
axed plans for a 3 million-share offering due to market conditions. The stock popped 1 9/16, or 15.6%, to 11 9/16.
Sylvan Learning Systems
(SLVN)
slid 1 7/16, or 9.3%, to 13 15/16 after it sliced its self-tender offer to 7.5 million shares from 9.5 million shares, citing recent market volatility.
Analyst actions
This morning,
Campbell Soup's
(CPB) - Get Campbell Soup Company Report
rating was downgraded to sell from hold by
Credit Suisse First Boston
analyst David Nelson due to what he said was the unsustainability of the company's earnings growth. Campbell Soup's fell 1 11/16, or 5.6%, to 28 5/16.
Alcan Aluminium
(AL) - Get Air Lease Corporation Class A Report
: REINSTATED buy at CSFB. Alcan Aluminum slipped 3/8 to 33 1/2.
Delhaize America
(DZA)
: DOWN to market performance from buy at
Donaldson Lufkin & Jenrette
. Delhaize America was unchanged at 17 1/2.
DoubleClick
(DCLK)
: UP to strong buy at CSFB. DoubleClick stumbled 8 3/16, or 13.6%, to 51 5/8.
FreeMarkets
(FMKT)
: UP to strong buy from buy at
U.S. Bancorp Piper Jaffray
. FreeMarkets shot up 19 1/4, or 36.4%, to 72.
Human Genome
(HGSI)
: REINSTATED near- and long-term accumulate at Merrill Lynch. Human Genome lifted 14, or 25.4%, to 69 5/16.
Kroger
: DOWN to market performance from buy at DLJ. Kroger lost 1/16 to 17 15/16.
Sigma-Aldrich
(SIAL)
: rating DOWN to neutral from buy at
Lehman Brothers
. Sigma-Aldrich fell 3 3/8, or 10%, to 30 1/4.
Thoratec Laboratories
(THOR) - Get Synthorx, Inc. Report
: NEW buy at Lehman Brothers; price target: 17. Thoratec Laboratories edged up 5/8, or 6.7%, to 9 7/8.
Vitesse Semiconductor
(VTSS)
: DOWN to buy from strong buy CSFB. Vitesse Semiconductor sank 10 1/2, or 14.3%, to 62 9/16.
J.P. Morgan
rolled out coverage of
Williams
(WMB) - Get Williams Companies, Inc. Report
with a long-term buy recommendation and
El Paso Energy
(EPG)
with a buy rating. Williams skidded 5/16 to 36 11/16 and El Paso added 1/16 to 39 7/8.
Miscellany
General Electric
(GE) - Get General Electric Company Report
said it would increase the amount paid to holders of 134,000 pensions for the first time since November 1996 because of pressure from retirees, reported in
The Wall Street Journal
. GE gained 4 1/2 to 156 1/2.
Many Internet retailers are turning a profit, according to a study, the
Journal
reported. According to the
Journal
, 72% of e-tailers are making money, with 38% not generating earnings.
