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Updated from 12:54 p.m.

As is the practice, the analysts are out in full force this morning, the day after


(INTC) - Get Free Report

announced that its fourth quarter wasn't going to end up the way it had hoped. After

warning that fourth-quarter revenue would fall short of expectations due to that pernicious slowdown in PC sales, Intel got the ax this morning, with multiple downgrades and reductions in estimates. It's the second quarter in the row Intel has announced a shortfall.

The chipmaker, the products of which appear in 90% of personal computers, warned that instead of the previously expected 4% to 8% revenue growth, revenue in the fourth quarter will come in flat "plus or minus a couple of percentage points." That means somewhere around $8.7 billion, lower than the analyst estimate of $9.26 billion.

Lehman Brothers'

Dan Niles, in a comment this morning, said the stock should be sold on any rally because of concerns about slowed demand. He cut 2001 earnings estimates to $1.40 from $1.65, cautioning that it "could be optimistic," but maintained an outperform rating.

Chase Hambrecht & Quist

lowered its rating to market perform from buy and dropped its price target to $45 from $50.

ABN Amro

downgraded the company to hold from add, on expectations of weak demand in the first half.

Credit Suisse First Boston

cut its 2001 earnings estimates to $1.45 a share from $1.66, and fourth-quarter estimates to 37 cents from 41 cents, but kept its buy rating.

Goldman Sachs

cut fourth-quarter estimates to 38 cents a share from 42 cents and lowered 2001 estimates to $1.55 from $1.80.

Robertson Stephens

dropped 2000 and 2001 earnings estimates to $1.63 and $1.55 from $1.66 and $1.70, but left alone its long-term attractive rating.

UBS Warburg

dropped its price target to $40 from $52, and lowered 2000 and 2001 estimates to $1.64 and $1.54 from $1.68 and $1.67, but didn't change its buy rating.

Deutsche Bank Alex. Brown

dropped 2000 estimates to $1.64 from $1.73, but maintained its underperform rating.

Going against the grain,

CIBC World Markets

upgraded the company to a buy from hold, setting a price target of $42. Intel closed up $1.56, or 4.8%, to $33.88.

Chase H&Q, in response to the Intel warning, not only dropped its rating on Intel this morning to market perform from buy, but did the same for

Advanced Micro Devices

(AMD) - Get Free Report

as well. Both companies make chips for PCs.

"We believe the current depressed PC-demand market environment will definitely affect Intel's main competitor, AMD," wrote Sudeep Balain, Chase's PC analyst, lowering the price target $30 from $35. AMD closed up $1.56, or 10.8%, to $16.06.

Mergers, acquisitions and joint ventures



announced that it has purchased privately held


for $645 million in stock. The move helps Emulex move into Giganet's area of expertise, which is based on Internet protocol.

Meanwhile, Emulex said sales of its Fibre Channel adapters were doing quite well, so well, in fact, that business will grow between 28% and 30%, up from earlier estimates. Emulex said that 2001 earnings could come in at $1.48 a share, better than the $1.45

First Call/Thomson Financial

estimate. Emulex ended the day up $23.31, or 15%, to $178.63.

Cereal giant

General Mills

(GIS) - Get Free Report

announced that its shareholders approved its acquisition of Pillsbury from British beverage giant


for $5.35 billion in stock plus the assumption of debt. General Mills closed up 75 cents, or 1.9%, to $40.75.

Philip Morris

(MO) - Get Free Report

announced the

Federal Trade Commission

had approved its planned purchase of

Nabisco Holdings


. The only catch is that the combination must sell off five product lines to avoid antitrust issues. So, say sayonara to


gelatin mix, dry mix pudding and no-bake desert,


baking powder and


mints. Nabisco's already got


cookies and


. Philip Morris ended the day down 6 cents, or 0.2%, to $39.63.

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Earnings/revenue reports and previews

Coca-Cola Enterprises


said that its full-year 2000 earnings would come in at 50 cents a share, in line with the

First Call/Thomson Financial

estimate. It's too bad that 2001 will be something of an earnings odyssey.

The company said that 2001 earnings would come in at 60 cents, 8 cents below the analyst estimate. The bottler mainly blamed currency weakness, with growth coming in between 6% to 7%, instead of the long-term goal of 8% to 10%.

The company also said fourth-quarter bottle and can volume would increase, even though North American sales lagged behind the rest of the world due to softness in Canadian sales. What's that aboot, eh? Coca-Cola Enterprises said that volume in Europe would grow 4% to 5%, while volume in North America would be less than the company's estimates. Sales in the United States grew 1%.

In response,

Merrill Lynch

revised its earnings estimates for 2001 to 58 cents from 65 cents a share. Coca-Cola closed down $3, or 13.1%, to $19.94.

It looks like

Quantum Hard Drive Disk Group


will have a hard time meeting estimates. The company announced that revenue for the third quarter will come in only between $725 and $750 million. Quantum blamed the miss on a problem with availability of a specific component, which cut the number of units the company shipped.

"We believe we will reduce our net loss by more than half from the 25 cent per share loss, excluding a special charge reversal, that was incurred in the September quarter," President John Gannon said.

Well, that's not so good. If the company pared that loss by more than half, it would still fall short of the First Call/Thomson Financial estimate, which is flat for the third quarter. Quantum closed up 50 cents, or 5.6%, to $9.38.

After Thursday's Close

Advanced Digital Information


announced fourth-quarter earnings of 14 cents a share, topping the 12 cent analyst estimate, and the year-ago 9 cents. Advanced Digital closed up $2.63, or 13.9%, to $21.56.

CDW Computer Centers


, a computer seller, said it will miss estimates in its fourth quarter. That's not exactly a shocker, considering the recent revenue warnings that have been spewing out of the PC-makers. The company said that fourth-quarter earnings would come in between 40 cents and 42 cents a share, missing the 50 cent First Call/Thomson Financial estimate. CDW closed down $9.50, or 24.3%, to $29.56.

The picture isn't so clear at liquid-crystal-display maker

Three-Five Systems


. The company announced that its fourth-quarter earnings and revenues would miss estimates, coming in between 8 cents and 10 cents a share, much lower than the five-analyst estimate of 20 cents.

Here's the explanation from CEO and President Jack Saltich: "One of our LCD driver suppliers had a one-time yield issue that resulted in a decommitment by that supplier of previously scheduled deliveries. As a result, $7 to $8 million of orders will go unfulfilled in this quarter."

And then he said: "Orders missed in the fourth quarter are usually not carried over to the first quarter."


Three-Five closed down $2.25, or 8.6%, to $24.06.

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Analyst actions

Morgan Stanley Dean Witter


: UP to accumulate from neutral at

Merrill Lynch

. Morgan Stanley ended the day up $6.31, or 9.3%, to $74.19.

Santa Fe International

(SDC) - Get Free Report

: UP to strong buy from buy at

Credit Suisse First Boston

; price target: $55. Santa Fe International closed up $2.06, or 7.7%, to $29.


Talk about coming on a little late. Several analysts downgraded

Ask Jeeves


this morning, after the company yesterday said that fourth-quarter revenues would fall short of expectations and that CEO Rob Wrubel had resigned.

Robertson Stephens

, Morgan Stanley Dean Witter and

Goldman Sachs

all cut ratings on the company, as is expected when a company announces its intention to step into the toilet for a prolonged swim. Yet the biggest head-scratcher has to be Goldman Sachs, which removed the stock from its recommended list this morning. What exactly a stock trading below $5 before the open -- a cool 96% off its 52-week high -- had to recommend it in the first place is hard to understand.

The company said yesterday it expects a fourth-quarter loss of 50 cents a share, wider than the 33 cent loss originally estimated by the eight-broker

First Call/Thomson Financial


Jeeves said that A. George Battle will become its interim CEO. Ask Jeeves anything but how much its stock went down today! The answer: It closed off $5.88, or 60.7%, to $3.81.


(DELL) - Get Free Report

: earnings estimates DOWN to $1.09 from $1.13 in 2001 at

ING Barings

. Dell closed up $1.13, or 6.5%, to $18.56.

General Motors

(GM) - Get Free Report

: DOWN to market perform from buy at

Deutsche Banc Alex. Brown

. GM closed down 38 cents, or 0.7%, to $51.


(MET) - Get Free Report

: DOWN to market perform from buy at

J.P. Morgan

. MetLife closed up $2.13, or 6.2%, to $36.50.



: earnings per share estimates DOWN to 84 cents from 95 cents for 2000; down to 80 cents from $1.15 in 2001 at CSFB. Motorola closed up $1.50, or 8.5%, to $19.25.


: earnings estimates DOWN to a 17 cent loss from an expected 8 cent loss for 2000; for 2001, earnings estimate of 4 cents a share from 14 cents a share at

Lehman Brothers


Prudential Securities

reduced its price target to $3. closed up 56 cents, or 30%, to $2.44.


Brookfield Properties


: NEW outperform at

Salomon Smith Barney

. Brookfield closed up 75 cents, or 4.5%, to $17.56.

Power One


: NEW intermediate-term neutral and long-term buy at Merrill Lynch. Power One closed up $6.13, or 10.4%, to $65.13.

Ryland Group


: NEW buy at Salomon Smith Barney. Ryland closed up $1.88, or 4.9%, to $40.

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Offerings/stock actions

Some little piggies might go to market, but

Trinet Group

announced that it will go wee-wee-wee all the way home. The payroll and human resources firm withdrew its plans for an initial public offering, citing unfavorable market conditions. The company would have been listed as "TRNE" on the Nasdaq after offering 3.9 million shares priced between $12 and $14.

Franklin Resources

(BEN) - Get Free Report

filed with the

Securities and Exchange Commission

to sell 7.2 million shares, which if valued at yesterday's close of $37.50, would gross $270 million for the mutual fund company to use for general corporate purposes, like paying off debt. This brings the number of outstanding shares in Franklin to more than 250 million. Ben, you're always running to and fro today, you closed up by percentage 4 that's $1.50 to $39, Ben, you are a friend of mine.

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Medical devices manufacturer



announced that it has received approval from the U.S.

Food and Drug Administration

to market its pacemaker product,

Fineline II Sterox

. Guidant closed up $1.06, or 2%, to $54.25.

Picture that,



president and chief executive, Daniel Carp, has just been named chairman, replacing George Fisher. Kodak closed down 44 cents, or 1.1%, to $39.

Phelps Dodge

(PD) - Get Free Report

, the world's second-largest copper producer and part-time wire- and cable-maker, is getting out of Dodge while the getting's good. The company announced that it plans to focus on mining and will be pulling out of its telecommunications and technology-related businesses.

The company said that it has retained

Goldman Sachs

to find a buyer for its

PD Wire & Cable Group

, which makes a variety of telecommunication products, such as magnet wire and high-performance conductors. Also on the block:

Columbian Chemicals

. Proceeds from a sale would be used to reduce debt and as capital to help meet long-term goals. Phelps Dodge closed up $2.56, or 5%, to $53.69.

Like a wet Gremlin,

Rockwell International

(ROK) - Get Free Report

is about to split in two. The automation and electronics company -- and former builder of aircraft and taximeters -- announced that it would be spinning off its

Rockwell Collins

unit, which produces a lot of electronics for the aviation industry.

"Through separating out automation and avionics and communications businesses," said Don Davis, Rockwell's chairman and chief executive, "we believe that each company will make decisions more quickly, deploy resources more rapidly and efficiently and operate with greater agility."

Davis will remain as head of Rockwell International, which will have annual revenues of $4.5 billion as a stand-alone company. Rockwell Collins, as the new entity will now be known, will have annual revenues of $3.1 billion. Clay Jones, the current president of Rockwell Collins, will become its first chairman and chief executive.

Stockholders will receive shares in the new company, which will also be listed on the

New York Stock Exchange on a one-for-one basis.

Rockwell also said that earnings in the first quarter would come in between 65 cents and 70 cents a share, right in the ballpark of the 68 cent analyst estimate. The company also said that 2001 full-year earnings would come in at the high end of a $3.10 to $3.20 range, better than the analyst estimate of $3.11. The stock closed up $2.69, or 6.5%, to $44.25.

After Thursday's Close

A week after

HomeCom Communications


cut its work force by 28% to reduce expenses while it pursued strategic options, the company found one -- delisting. HomeCom announced that it will be delisted from the

Nasdaq effective today. The company formerly known as HCOM on the Nasdaq is still eligible for trading as an over-the-counter stock. We don't list trading information on OTCs in this column.

At some point, people might be able to name their own price for


itself. The beleaguered company, which recently eliminated its grocery business, announced that it cut 48 jobs, or 11% of its work force, after saying it was indefinitely postponing the launch of its business-to-business service, along with its term life insurance and cellular-phone services. As noted above, closed up 56 cents, or 30%, to $2.44.



caught a new CFO, naming William Lacey to replace the company's front-office vacancy. Rawlings closed up 9 cents, or 1.6%, to $6.09.

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By the numbers

The data on NYSE and Nasdaq percent winners and losers are filtered to exclude stocks whose previous day's volume was less than 25,000 shares; whose last price was less than 5; and whose net change was less than 1/2.

Dow point gain and loss data are based on New York closing prices and do not reflect late composite trading.

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