Stocks to Watch: Bank One Expects to Miss Estimates; British Telecom to Buy Esat

Mister Softee ends a three-year legal battle with Caldera.
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Bank One

(ONE) - Get Report

said it

expects to report fourth-quarter earnings of 78 cents a share, a penny below the 25-analyst estimate of 79 cents. The bank said it would report fiscal 2000 earnings of between $2.80 to $3 a share, greatly missing the 26-analyst estimate of $3.42. The disappointing outlook is linked to its financially floundering credit-card unit

First USA

, which triggered profit warnings in August and in

November. The company said it saw fiscal 1999 earnings of between $3.45 to $3.55 a share. The 26-analyst estimate sees the company posting fiscal 1999 earnings of $3.46 a share. In premarket activity, Bank One was at 28 1/4, down from Monday's closing price of 30 1/16.

Mergers, acquisitions and joint ventures

British Telecom

(BTY)

said it has entered a pact to purchase Ireland-based

Esat Telecom

(ESAT)

in a deal valued at $2.46 billion. British Telecom said the transaction was favored by Esat's board.

Pegasus Communications

(PGTV)

said it has agreed to acquire

Golden Sky

in a $1 billion deal. According to the terms, Pegasus would issue 6.5 million Class A common shares to Golden Sky shareholders and take on roughly $373 million of Golden Sky's debt. Pegasus also said it plans to sell its Puerto Rico-based cable system to

Centennial Cellular

(CYCL)

in a cash transaction of $170 million.

Texas Instruments

(TXN) - Get Report

and

Clarent

(CLRN)

said they have agreed to a pact involving the creation of Internet protocol telephony products.

Earnings/revenue reports and previews

(

Earnings estimates from First Call/Thomson Financial; earnings reported on a diluted basis unless otherwise specified.

)

Network-chip maker

Applied Micro Circuits

(AMCC)

reported earnings of 21 cents a share for the fiscal third quarter of 2000, which ended Dec. 31. The results were 2 cents higher than the First Call/Thomson Financial consensus and 1 cent better than the company estimated in a Jan. 3 earnings preannouncement.

Charlotte Russe

(CHIC) - Get Report

posted first-quarter earnings of 22 cents a share, beating the four-analyst estimate of 19 cents and the year-ago 15 cents.

Centura Banks

(CBC)

posted fourth-quarter earnings of $1.05 a share, missing the 11-analyst estimate by a penny but up from the year-ago 88 cents.

Compuware

(CPWR)

said after yesterday's close that it expects its third-quarter earnings before items to match or beat the 13-analyst estimate of 33 cents a share. Compuware said its total third-quarter revenue would be in the range of $620 million to $633 million, more than 45% above year-ago levels, but warned that its professional service revenue would fall below expectations.

Compuware also said it was once again extending its $9-a-share tender offer for

Viasoft

(VIAS)

, this time until Jan. 18. This morning,

Credit Suisse First Boston

analyst Wendell Laidley cut his price target on the stock to 42 from 51.

Hillenbrand

(HB)

reported fourth-quarter earnings of 58 cents a share, beating the five-analyst estimate of 56 cents but down from the year-ago 75 cents.

Juno Online

(JWEB)

posted a fourth-quarter loss of 45 cents a share, narrower than the three-analyst estimate of a 55-cent loss.

Mentor Graphics

(MENT)

said it is on track to meet the 10-analyst fourth-quarter earnings estimate of 25 cents a share.

Newhall Land

(NHL)

said it made an upward revision of its fiscal 1999 earnings to $2.80 to $2.85 per unit, edging out the two-analyst estimate of $2.74 per unit.

Sodexho Marriott

(SDH)

reported first-quarter earnings of 44 cents a share, in line with the three-analyst estimate but down from the year-ago pro forma earnings of 45 cents.

Total System Services

(TSS) - Get Report

reported fourth-quarter earnings of 10 cents a share, in line with the single-analyst estimate and up from the year-ago 9 cents.

Offerings and stock actions

Corning

(GLW) - Get Report

said it plans to offer 13 million shares in a $2 billion shelf registration.

Analyst actions

Warburg Dillon Read

rolled out coverage of

ChromaVision

(CVSN)

with a buy rating and set a price target of 25.

Deutsche Bank Alex. Brown

sliced its rating on

Excite@Home

(ATHM) - Get Report

to a market perform from a buy in the wake of the

America Online

(AOL)

/

Time Warner

(TWX)

merger.

Separately,

Schroeders

said it cut its price target on AOL to 85 from 105 on concerns that its new agreement with Time Warner will slow AOL's growth rate and that arbitrage will pressure its shares.

SG Cowen

rolled out coverage of

Galileo Technology

(GALT) - Get Report

with a buy rating.

Credit Suisse First Boston upped its rating on

Intel

(INTC) - Get Report

to a strong buy and raised its price target to 150.

Wachovia

upgraded shares of

Newbridge Networks

(NN)

to a long-term buy from a neutral.

Deutsche Bank Alex. Brown rolled out coverage of

PSS World Medical

(PSSI)

with a buy rating.

Miscellany

Microsoft

(MSFT) - Get Report

said it

settled an antitrust lawsuit, ending a three-year legal battle. No, not

that

antitrust suit. This claim was brought against it by software company

Caldera

, which filed the suit in July 1996, charging Microsoft with illegally trying to maintain its monopoly in operating systems. At the time, Caldera was seeking $1 billion in damages. Although the terms of the settlement were kept confidential, Microsoft said it will take a charge of 3 cents a share in the third quarter. Salt Lake City-based Caldera said it was pleased with the result but added -- in a sign that the companies are not planning on living happily ever after together -- that it will push the Linux operating system, an emerging rival to Microsoft's Windows platform.

Toys R Us

(TOY)

said it has

tapped John Eyler as its president and CEO.