Friday's Winners & Losers: Loral Space & Communications, Lamson & Sessions, Optelecom, MatrixOne
Updated from 3:57 p.m. EDT
No, it's not April Fools' Day, but it might have seemed that way to
Emulex
(EMLX)
, which became the target of a hoax that sent its stock nose diving about 60% to 45. A fake press release had the company reversing its fourth-quarter earnings estimates to a loss of 15 cents a share from net gain of 25 cents and said chief executive Paul Folino had resigned. The stock was halted around 10:30 a.m. EDT., but was restarted at 1:30 p.m. Shares of Emulex ended lower 7 5/16, or 6.5%, to 105 3/4.
Fiber optics network equipment company
Sycamore Networks
(SCMR)
posted fourth-quarter earnings that beat Wall Street's estimates. The firm reported earnings of 8 cents a share, beating the 13-analyst
First Call/Thomson Financial
estimate of a 6-cent profit and the year-ago 4-cent result. Since the prior fourth quarter, Sycamore's revenue has increased eightfold.
TheStreet.com/NYTimes.com
joint newsroom detailed Sycamore's results in a separate
story. Sycamore Networks fell 7 3/16 to 150 13/16.
Internet consulting firm
Razorfish
TheStreet Recommends
(RAZF)
reported that its President, Mike Pehl, will resign to spend time with his family and explore career opportunities. (Stop snickering.) Pehl joined the company in November after his firm,
International Integration
, was acquired by Razorfish. He will continue to have a relationship with Razorfish through a consulting agreement. Razorfish closed down 7/8, or 6%, to 13 11/16.
This morning, the stock was cut to buy from strong buy at
Deutsche Banc Alex. Brown
.
Mergers, acquisitions and joint ventures
Global tire makers
Cooper Tire
(CTB) - Get Cooper Tire & Rubber Company Report
,
Goodyear
(GT) - Get The Goodyear Tire & Rubber Company Report
,
Michelin
,
Continental
,
Pirelli
and
Sumitomo
signed an agreement to build a joint purchasing and procurement e-marketplace, called
RubberNetworks.com
. Cooper Tire slid 1/16 to 11 7/8.
Ford's
(F) - Get Ford Motor Company Report
dealer council said it will form an Internet-based site, called
FordDirect.com
, to sell cars online. The Web site will be jointly owned by participating dealers and Ford with an independent management team. Ford will be an investor, while the dealers will retain control of the venture. Ford declined 1/8 to 27 5/8.
After Thursday's Close
Consumer products manufacturer
Chattem
(CHTT)
announced that it has agreed to sell its
Ban
deodorant line to
Kao's
Andrew Jergens unit, for $160 million in cash. Kao is Japan's largest personal, cleansing and sanitary products company. Chattem fell 1 7/8, or 13%, to 12 15/16.
Manufacturing giant
Honeywell
(HON) - Get Honeywell International Inc. Report
confirmed that it has hired investment house
Salomon Smith Barney
to help the company find a buyer for its automotive products unit, a division that makes goods including filters, spark plugs and car care products. Honeywell moved down 1/8 to 39 7/8.
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Earnings/revenue reports and previews
Lancaster Colony
(LANC) - Get Lancaster Colony Corporation Report
posted fourth-quarter earnings of 61cents a share, missing the four-analyst estimate and year-ago earnings by a penny. The company blamed the missed earnings on weaker operating results in its automotive and glassware and candles businesses. Lancaster Colony lowered 7/16 to 23 3/8.
Automotive supplier
Lear
(LEA) - Get Lear Corporation Report
cut its second-half earnings estimate for 2000 by 18 cents a share, saying it would be hurt by the weak euro and the stronger-than-expected peso, as well as
Ford
Explorer and Ranger production cuts. The 21-analyst estimate for the third-quarter was 66 cents a share and the 20-analyst estimate for the fourth-quarter was $1.54. Lear missed 1 13/16, or 7.5%, to 22 1/2.
Rent-A-Center
(RCII) - Get Rent-A-Center Inc. Report
said it agrees with analyst earnings estimates for 2000 and 2001. The six-analyst estimate for 2000 was $2.58 a share, while the five-analyst estimate for 2001 was $2.97. In 1999, the company's earnings were $1.74 and in 1998 were $1.24. The company said it's on track to post double-digit same-store sales in the third quarter. Rent-A-Center hopped 4 1/8, or 14.7%, to 32 1/8.
Rite-Way
(RWY)
said it is "highly confident" it will meet analysts' estimates for its fourth-quarter and year earnings. The seven-analyst estimate for the quarter is 46 cents a share, which is up from year-ago earnings of 41 cents and the full year estimate was $1.83 a share, compared with year-ago of $1.26. Rite-Way increased 9/16 to 24 9/16.
Time Warner Telecom
(TWTC)
agreed to pay $690 million for the majority of
GST Telecommunications'
assets. The deal excludes most of GST's Hawaii assets and residual cash balances. Time Warner Telecom fell 5/8 to 61 7/16.
After Thursday's Close
Crossroads Systems
(CRDS)
, a manufacturer of storage network equipment, recorded a third-quarter 30-cent loss, missing the two-analyst prediction of a 21-cent loss, and dropping below the year-ago 9-cent loss. The company also reported a 6% decrease in revenue for the quarter. Crossroads Systems declined 1 3/4, or 16%, to 9 3/16.
Mandalay Resort Group
(MBG)
announced second-quarter earnings of 50 cents a share, topping the 16-analyst 47-cent estimate and improving on year-ago 29-cent earnings. Mandalay Resort Group advanced 1 5/16, or 5%, to 27 9/16.
Marvell Technology Group
(MRVL) - Get Marvell Technology Inc. Report
listed a second-quarter profit of three cents a share, exceeding the three-analyst one penny estimate and in line with the year-ago result. The stock's 2000 EPS was raised to 16 cents from 13 cents at Lehman Brothers and its 2001 EPS was raised to 36 cents from 33 cents. Marvell Technology Group rose 1/4 to 55 3/8.
Midway Games
(MWY)
recorded a fourth-quarter loss of 39 cents a share, narrower than the three-analyst expectation of a 43-cent loss but below the year-ago negative 12-cent result. Midway Games declined 1/2, or 5.7%, to 8 1/4.
PumaTech
(PUMA)
posted a pro forma loss of 8 cents a share, besting the five-analyst forecast of an 11-cent loss but below the year-ago pro forma 1-cent profit. PumaTech shed 2 5/8, or 11.2%, to 20 13/16.
Remec
(REMC)
posted second-quarter earnings of 7 cents a share, beating the four-analyst 6-cent estimate by a penny and up from the year-ago 7-cent loss. Remec increased 1/16 to 30 1/16.
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Analyst actions
Coca-Cola's
(KO) - Get Coca-Cola Company (The) Report
volume projections were lowered by Salomon Smith Barney because of softness in several global markets including North America. The firm estimates unit case volume in the second half of this year to increase 4.5%, not 5% to 5.5% as previously projected and 2001's volume growth target was cut to 5% from 5.5%. Coke has projected growth in the 6% to 7% range.
In related news, the company named Jeffrey Dunn group president of North America. Coca-Cola declined 1 15/16 to 56.
Upgrades
Apple
(AAPL) - Get Apple Inc. Report
: UP to strong buy from buy at
Wit Soundview
. Apple lifted 45/64 to 56 13/16.
Coflexip Stena Offshore
(CXIPY)
: 2000 earnings-per-share estimate UP to $1.70 from $1.50 at
Merrill Lynch
. Coflexip Stena Offshore gained 7/16 to 64 3/4.
Corio
(CRIO)
was added to U.S. recommended-for-purchase list at Goldman Sachs. Corio added 7/8, or 7.5%, to 12 1/2.
Lehman Brothers
(LEH)
: third-quarter EPS estimate UP to $2.80 from $1.98 at
UBS Warburg
; 2000 EPS estimate to $12.20 from $10.68; and 2001 EPS estimate to $12.40 from $11.20. Lehman Brothers lowered 1 9/16 to 133 13/16.
Ulticom
(ULCM)
: 2000 EPS UP to 16 cents from 13 at Lehman Brothers; 2001 EPS UP to 21 cents from 17 cents and its price target UP to 55 to 60. Ulticom hopped 6 1/8, or 13.9%, to 50 1/16.
Waters
(WAT) - Get Waters Corporation Report
: price target UP to 165 from 140. Waters improved 6 3/8 to 156 7/8.
Downgrades
American Management Systems
(AMSY)
: DOWN to hold from buy at
ING Barings
. American Management Systems tacked on 3/8 to 15 3/8.
Bausch & Lomb
(BOL)
: DOWN to hold from buy at ING Barings; DOWN to neutral from buy at
PaineWebber
. Bausch & Lomb missed 15/16 to 34 15/16.
Sysco
(SYY) - Get Sysco Corporation Report
: DOWN to neutral from buy at
U.S. Bancorp Piper Jaffray
. Sysco fell 1 1/4 to 42 3/4.
Initiations
Lamar Advertising
(LAMR) - Get Lamar Advertising Company Report
: NEW outperform at Salomon; 12-month price target: 60. Lamar Advertising gained 9/64 to 48 1/4.
Lexent
(LXNT)
: NEW buy at
Credit Suisse First Boston
; 12-month price target: 30. Lexent dropped 3/16 to 26 1/8.
Symyx
(SMMX)
: NEW buy at
Chase Hambrecht & Quist
; price target: 55. Symyx increased 15/16 to 37 7/8.
Temple-Inland
(TIN)
: REINITIATED as a hold at CSFB. Temple-Inland decreased 1/4 to 43.
Group Moves
Merrill Lynch
said auto supplier
Visteon
(VC) - Get Visteon Corporation Report
will be "substantially" affected by the
Ford/Firestone
recall, and other auto suppliers
ArvinMeritor
(ARM)
,
Dana
(DCN)
and
Federal-Mogul
(FMO) - Get Fiduciary/Claymore Energy Infrastructure Fund Report
will "bear the brunt of deteriorating market conditions."
- Visteon: third-quarter EPS estimate DOWN to 42 cents from 50 cents and yearly EPS estimate DOWN to $3.41 from $3.45.
ArvinMeritor: fourth-quarter EPS estimate DOWN to 65 cents from 82 cents and yearly EPS estimate DOWN to $3.77 from $3.95.
Dana: third-quarter EPS estimate DOWN to 82 cents from 90 cents and yearly EPS estimate DOWN to $3.67 from $3.80.
Federal-Mogul: third-quarter EPS estimate DOWN to 55 cents from 70 cents and yearly EPS estimate DOWN to $2.65 from $2.95.
Ford decreased 1/8 to 27 5/8; ArvinMeritor fell 15/16 ,or 5.2%, to 16 15/16; Dana shed 1 1/8 to 25 1/16; Federal-Mogul stayed flat at 11.
Lehman Brothers
started coverage of four California banks:
- Westamerica Bancorp (WABC) - Get Westamerica Bancorporation Report: NEW neutral
City National (CYN) : NEW neutral
Greater Bay Bancorp (GBBK) : NEW outperform; 2001 EPS estimate: $3.65.
BancWest (BWE) : NEW buy.
Westamerica Bancorp climbed 1/4 to 29 7/8; City National lifted 7/16 to 38 3/8; Greater Bay Bancorp advanced 7/8 to 58 7/16; BancWest gained 1/16 to 17 5/16.
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Offerings and stock actions
Amresco
(AMMB)
said its shareholders had approved a 1-for-5 reverse stock split. Amresco remained unchanged at 11/32.
Federated
undefined
said its board approved an additional stock buyback up to $500 million. This adds to the company's existing stock buyback started in January, which at the end of its second quarter had about $70 million of the original $500 million authorization remaining. Federated climbed 5/16 to 27 5/8.
Principal Financial Group
said it intends to shed its policyholder-owned status and restructure into a stockholder-owned corporation,
The Wall Street Journal
reported. It will lay out its demutualization plan early next year, company officials said.
After Thursday's Close
OceanFirst Financial
(OCFC) - Get OceanFirst Financial Corp. Report
, the holding company for
OceanFirst Bank
, announced that it plans to buy back up to 1.1 million shares, or about 10%, of its outstanding common stock. OceanFirst Financial increased 13/16 to 20 7/8.
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Miscellany
Internet phone company
Net2Phone
(NTOP)
named Stephen Greenberg to the new post of president. The newly formed office of the president will be staffed as well by CEO Howie Balter and Chairman Cliff Sobel and will manage the company's planned expansion into online and offline markets. Net2Phone staggered 15/16 to 27.
Auto insurer
21st Century Insurance Group
(TW) - Get Tradeweb Markets Inc. Report
said it has deferred action on a third-quarter dividend until it reviews its dividend policy, which will be completed within 30 days. 21st Century Insurance Group improved 1/4 to 16 11/16.
Natural gas distributor
ONEOK
announced that Larry Brummett, chairman and chief executive, has died after a two-year battle with cancer. Brummett was 49. The company has not named a successor. ONEOK fell 1/2 to 30 15/16.
Bank of America
(BAC) - Get Bank of America Corporation Report
said it will redesign some of its branches in an effort to increase sales of stocks, bonds and mutual funds. The bank will launch a pilot program that is expected to affect 500 of its 4,500 branches over the next several years. The new offices' improvements include television sets tuned to financial news networks and computers with Internet access to accounts. Bank of America lowered 3/4 to 51 3/4.
Lernout & Hauspie's
(LHSP)
newly appointed Chief Executive John Duerden said the departure of his predecessor, Gaston Bastiaens, was not speeded up by litigation threats and Duerden's appointment wasn't made as an attempt to regain investor confidence amid concerns about how it reported its sales.
An Aug. 8 story in
The Wall Street Journal
raised questions about discrepancies in the company's claims of sales to certain customers in South Korea. Lernout disputed the findings, but the company commissioned a special audit by its accountants to allay concerns about its financial results. Lernout & Hauspie decreased 4 5/8, or 13.3%, to 30 1/16.
Property and liability insurer
St. Paul
(SPC)
said its president and chief operating officer, James Gustafson, is leaving the company by mutual consent. In a release, Chairman and CEO Douglas Leatherdale said Gustafson, who has been in the job less than two years, is "a talented executive," but that "it has become apparent to the board and me that there was not a fit" between the company and Gustafson's skills. St. Paul moved down 1 to 45 13/16.
Special Metals
(SMCX)
said its chairman, Robert Halverstadt, will retire and will be replaced by Phillippe Choppin de Janvry, who is currently chairman and CEO of
Eramet International
. Special Metals tacked on 1/8 to 3 3/4.
UAL's
(UAL) - Get United Airlines Holdings Inc. Report
United Airlines
is making headway in contract talks with its pilots union, according to
The Wall Street Journal
. The story said senior officials from both sides are now at the bargaining table. Also, the company announced that a 30-second advertisement featuring an apology to customers from the airline's chairman, James Goodwin, will begin airing. UAL advanced 2 3/16 to 50 3/8.
After Thursday's Close
Newspaper and TV company
E.W. Scripps
(SSP) - Get E.W. Scripps Company (The) Report
announced that Kenneth Lowe has been elected president and chief executive. Lowe's appointment had been expected since January, when he became president and COO and William Burleigh, then CEO, stepped down. E.W. Scripps climbed 1/8 to 49 15/16.
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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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