Updated from 1:04 p.m.
The problem with doing a good job is that, eventually, people begin to expect it.
( BLS) said it expected its revenue to grow in the high-40% range, just as it did on its earnings conference call last month. The company said it is on track to meet earnings and revenue expectations in its fiscal 2001 second quarter. Sun closed up $2.06, or 2.4%, to $89.31.
( SBC) yesterday after the close announced growth strategies and projections for 2001, concentrating on their DSL and wireless divisions.
BellSouth said it expects a 200% growth rate in DSL customers, from about 200,000 this year to 600,000 in 2001. Based on that growth rate, the company is expected to generate revenue of about $225 million in 2001 and $500 million in 2002. The company said its projections are reachable "through expanded deployment strategies and highly successful self-installs."
In the wireless arena, BellSouth expects to gain 2 million customers, a 30% growth rate, in Latin America during 2001. Including revenue from its proportionate share of Cingular Wireless, the joint venture between the wireless units of
( SBC) and BellSouth formed earlier this year, BellSouth said it expects 9% to 11% revenue growth for 2001.
The company also said it expects 2001 earnings per share growth to be in the 13%-15% range, before charges included in entering the national Colombian market and before the incremental impact of additional DSL customer growth. Including these two factors, EPS growth is expected to fall in the 7% to 9% range. BellSouth closed down $7.13, or 14.5%, to $42.13; SBC was down $2.06, or 3.6%, to $56.
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Mergers, acquisitions and joint ventures
said it has bought
( JBAK) assets and footwear licensing agreement for $57.8 million.
The deal leaves J. Baker room to focus on its apparel business, while Footstar gains more headway in becoming the biggest operator in licensed footwear departments in the United States. Per the deal, Footstar acquires $140 million in retail inventory, but its first-quarter 2001 earnings will not beat the previous year's, thanks to charges related to the J. Baker acquisition. Footstar closed up $1.38, or 3.5%, to $41; J. Baker was up $2.13, or 87.2%, to $4.56.
Survey says -- No!
( MYG), the appliance-maker with the famously underused repair man, rejected an unsolicited bid for up to 2.75 million of its shares. Canadian investment firm
offered $25.50 a share for Maytag's stock, which is below current market value and at the trough of its 52-week trading range of $25 to $50.19. Maytag closed up 38 cents, or 1.3%, to $29.25.
Royal Philips Electronics
announced Friday that it has agreed to buy
Healthcare Solutions Group, known as HSG, for $1.7 billion, pending any customary regulatory approvals.
The acquisition will help Amsterdam-based Philips incorporate HSG's 400 health care products and services and expand its medical business, Philips Medical Systems, into different segments, such as automatic external defibrillators and home care technology, enabling remote diagnostics.
HSG has annual sales of $1.5 billion and a strong presence with hospitals and health care institutions worldwide. The stock closed up 31 cents, or 0.9%, to $35.81.
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Earnings/revenue reports and previews
( DCX) said its earnings will be hurt by problems at its U.S. Chrysler unit. It is also shuffling Chrysler's management.
DaimlerChrysler is well off its 52-week high of $78.68. The problems with the company stem from the U.S. unit, where sales have been disappointing. The company has already issued earnings warnings twice this year.
The news comes at a particularly bad time for Chrysler. The Big Three U.S. automakers just announced plans to idle North American plants due to slowing auto sales. And higher energy prices could dampen enthusiasm for new cars, especially gas-guzzling SUVs, which have been among the most popular models for U.S. buyers. DaimlerChrysler closed down 71 cents, or 1.6%, to $42.85.
issued a clarification Friday of a regulatory filing in which it said that $5.8 million in third-quarter 2000 revenues, or 10% of the company's total revenues, came in the form of equity from advertisers on its network.
Including revenue from recently acquired
, the company said revenues earned in the form of equity, which stem primarily from three contracts that CNet struck in 1998 and 1999, was only 5% of total revenues.
The company said it issued the statement in response to "investor inquiries" prompted by a third-quarter report filed Nov. 14 with the
Securities and Exchange Commission
The company, which provides information and services on the Internet, also said it expects revenues from equities paid by advertisers to fall in 2001. CNet ended the day up 63 cents, or 3.2%, to $20.13.
After Thursday's close
( DITC) announced third-quarter earnings of 38 cents a share, topping the 38 cent estimate and the year-ago 27 cents. The company said operating profits jumped 31% and that the next quarter would come in a range between 50 and 60 cents a share, in line with the 53 cent analyst estimate. The company said 2001 earnings would come in between $1.80 and $1.90 a share, just above the $1.80 full-year estimate. Autodesk closed up $3, or 14.3%, to $24.
( DITC) released second-quarter earnings of 45 cents a share, beating the 44-cent
First Call/Thomson Financial
estimate and last year's 31 cents. Sales rose to $45.1 million from the year-ago $26 million. Ditech closed down $7.44, or 22.4%, to $25.75.
( GBIX), a company responsible for getting Internet companies on the Web, announced fourth-quarter losses of 81 cents a share, narrower than the $1.06 loss estimate from the analysts. The year-ago quarter had a 52 cent loss. Revenues increased to $20.3 million from $4.6 million. Next year, Globix said revenues would come in between $24 million and $25 million. Still, the company expects to continue losing money, with fiscal 2001 losses coming in between $85 million to $90 million. Globix closed down $1.28, or 18.6%, to $5.61.
, an integrated circuits designer, reported third-quarter earnings that beat Wall Street's estimates, as the company's data storage business continued to grow and revenue came in slightly above internal expectations.
Income before noncash charges for the amortization of stock compensation totaled $3.4 million, or 4 cents a diluted share, beating analysts' estimates by a penny, according to a First Call/Thomson Financial survey.
In the year-ago period, the company reported income before noncash items of $5.5 million, or 7 cents a share. Sales rose 54% to $36.2 million from $23.5 million in the year-ago quarter. Marvell closed up 25 cents, or 0.6%, to $45.38.
announced third-quarter earnings of 22 cents a share, beating the 21-cent First Call/Thomson Financial estimate and the year-ago 12 cents. Sales rose to $69 million from $47 million. Semtech closed down 44 cents, or 1.5%, to $29.25.
( SSPE) might find itself leaning on a new color -- red -- after announcing that its fiscal 2001 numbers would be 20% to 30% lower than the previous year. The company also reported second-quarter losses of 25 cents a share, far worse than last year's 44 cent profit. First Call/Thomson Financial did not have an earnings estimate for the company. The stock closed down $2.44, or 23.9%, to $7.75.
met analysts' expectations for the fourth quarter and fiscal 2000, while same-store sales grew 10% for the period. Excluding noncash Internet investment losses, the coffee chain from Seattle posted pro forma income of $43.8 million, or 22 cents a share, up from $32.4 million, or 17 cents a share, last year. The First Call/Thomson Financial estimate was 22 cents a share.
Earnings for fiscal 2000, excluding losses, were $136.8 million or 71 cents a share, compared with $101.7 million, or 54 cents a share, in fiscal 1999. That was in line with the 19-analyst estimate. Revenue for the quarter was $582 million, compared with $475 million last year.
Starbucks also announced the writedown of the majority of its equity positions in
. After the writedown, which will not affect 2001 earnings targets, the carrying cost of all Internet investments is $4.8 million.
For fiscal 2001, Starbucks plans to increase total revenues by about 25% to 30%, as well as achieve same-store sales in the middle single digits. The company also announced a target of 90 cents to 92 cents a share for full-year 2001 earnings, meeting analysts' expectations of 91 cents a share. Starbucks also said one of its goals for 2001 was to open at least 1,100 new company-operated and licensed stores worldwide. Starbucks closed up $1.69, or 3.7%, to $47.94.
( LNUX), which warned earlier this month that earnings and revenue would miss analysts' forecasts, reported first-quarter results that met Wall Street's lowered estimates.
The company's first-quarter loss, excluding noncash items, narrowed to $7 million, or 15 cents a share, in line with the lowered estimates, from $7.2 million, or 27 cents a share, in the year-ago period.
Revenue rose to $56.1 million from $14.8 million a year ago.
VA Linux, a provider of the Linux operating system and open source software, said that, "while top- and bottom-line results did not meet our expectations for the quarter, we remain optimistic about our prospects for growth in the future. We remain committed to profitability, excluding noncash charges, no later than the end of calendar 2001." The company's stock ended the day up $1.38, or 11.5%, to $13.38.
makes Wrangler and Lee jeans, but in new attempts to rustle up more profits, the company is restructuring. And as part of these attempts, VF said it would take a $120 million to $140 million charge in the fourth quarter. The company now expects full-year earnings to come in between $2.95 and $3 a share, either just off or in line with the $3.00 per share First Call/Thomson Financial estimate. VF closed up 44 cents, or 1.6%, to $28.31.
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upgraded its rating on power-plant operator
to its recommended list and issued positive comments on three other utilities companies that are moving from a regulated business to a more independent business.
PPL was given a price target of $55. Goldman cited rapid growth in the nonregulated utilities business as an expectation of continued strong performance in the stock, which closed at $38.81 yesterday. This morning, the stock was trading up $1.75, or 4.7%, to $40.56. Goldman said the "transitioning" growth group is expected to provide returns of 45% to 50% over the next 12 months.
"The best total return prospects under the transitioning-growth theme are in four stocks, including
, Pacific Electric & Gas
Constellation Energy Group
( CEG) and PPL," analyst Jonathan Raleigh said in the Goldman note.
PPL closed up $1.94, or 4.99%, to $40.75; Edison was up 88 cents, or 3.9%, to $23.63; Pacific was up 63 cents, or 2.2%, to $28.63; and Constellation was up $1.69, or 4%, to $43.44.
held a midquarter conference call, analysts remained generally positive on the stock.
Credit Suisse First Boston
affirmed their existing ratings.
Banc of America Securities
cut the target price on the stock to $130 from $145, but said the move reflects weakness in technology stocks, rather than specific problems with the company. As noted at top, Sun closed up $2.06, or 2.4%, to $89.31.
( IDR): UP to buy from accumulate at
; price target: $25. Intrawest closed up 56 cents, or 3.1%, to $18.94.
Barnes & Noble
: UP to buy from outperform at
Salomon Smith Barney
, price target $30; UP to buy from accumulate at Merrill Lynch; price target: $35. The book retailer closed up $1.63, or 46.4%, to $5.13.
: UP to buy from outperform at Lehman Brothers. Bergen ended the day up 63 cents, or 5.2%, to $12.75.
: price target UP to $160 from $150 at Lehman Brothers. Veritas closed down $10.88, or 8.99%, to $110.13.
: DOWN to accumulate from strong buy at
. Gentex closed down $1.75, or 8.3%, to $19.25.
: DOWN to accumulate from strong buy at Prudential Securities. Navisite closed down $1.88, or 26.8%, to $5.13.
Kulicke & Soffa
: estimates DOWN to $1.62 from $1.68 in 2000; down to 11 cents from 25 cents in 2001 at Merrill Lynch. The stock closed down 56 cents, or 4.9%, to $11.
: NEW outperform at Salomon Smith Barney; price target: $36. Homestore.com closed down 44 cents, or 1.5%, to $29.06.
( BSYS): NEW buy at CSFB; price target: $58. BISYS ended the day up $3, or 7.2%, to $44.69.
( OAT): NEW market performer at Banc of America Securities. Quaker Oats closed up 19 cents, or 0.2%, to $90.31.
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Offerings and stock actions
First Midwest Bancorp
upped its quarterly dividend to 20 cents from 18 cents. That's an 11% hike! Hooray! First Midwest closed up 19 cents, or 0.8%, to $23.25.
( TALX) talked, announcing a 3-for-2 stock split and a whole range of other non-earnings announcements, a refreshing change of pace given recent situations. The company also approved a quarterly dividend of 3 cents of share on the post-split shares. Talx also plans to continue its stock buyback program and can grab up to 400,000 shares in the next two years. Talx closed up $2.38, or 7.6%, to $33.50.
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A cold wind blew through e-tailer
today, as Chief Executive Robert Bowman left the company to take a job with Major League Baseball. He will be succeeded by current CFO Katherine Vick, who also becomes president. The company said it will meet third-quarter estimates. The COOL stock closed down 13 cents, or 6.1%, to $1.94.
In sad news,
Chairman, President and CEO C.V. "Vin" Prothro died after suffering a heart attack while at a meeting. He was 58 years old. The company's stock went down in sympathy, lower by $1.25, or 3.4%, to $35.63.
( OCAS), there's a new sheriff in town. The company announced the Dan Carmichael will become president and chief executive, succeeding William Woodall, who will keep his role as chairman of the board. Ohio Casualty closed up 56 cents, or 6.9%, to $8.75.
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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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