The Day's Winners
Several semiconductor equipment names got a boost from a Goldman Sachs upgrade Friday morning, with the brokerage firm saying that Thursday's selloff created a buying opportunity. Goldman believes that fund flows and seasonality may move the stocks higher, even though fundamentals are not likely to improve in the near term.
moved higher on an upgrade to trading buy, while
rose on an upgrade to market outperform.
rose 8% to $2.56 after the company reiterated its outlook for the third quarter and said it expects to close more plants. The flash memory manufacturer said on July 18 that it expected to see low- to mid-single digit revenue growth in the quarter, up from $294.8 million last year. The company also said it had a "strong" financial position with more than $440 million in cash and equivalents on hand. Atmel expects more plant closings eventually, and said it has eliminated 1,500 jobs to date as part of its restructuring plan.
moved up about 12% to $6.50 after the company said Friday that it would meet its cash flow estimates for the full year. Cablevision expects telecom cash flow growth of 15% in the year, with its
Rainbow Media Group
seeing growth of 13% to 15% excluding a bad debt charge related to
. In addition, the company said its CEO and vice chairman are preparing to sign the new
certification of financial filings, required before Aug. 14.
tacked on 3% to $29.27 on news that the company's board has authorized a $50 million buyback program. The company said it would buy shares from time to time in the next two years, depending on price. The program will add to the company's 15.6 million shares already acquired in such programs since February 1995.
Storage industry services provider
added 17% to $3.61 after an upgrade to neutral from underperform by SoundView. The firm said it sees signs of stabilization at Western Digital and it has more confidence in the company's margin outlook. SoundView moved its 2003 earnings target to 32 cents a share from 19 cents, and maintained its target price of $5 for the end of the year. Western Digital reported a fourth-quarter profit Thursday, despite a weak PC market. The company earned 7 cents a share in the quarter, with revenue increasing to $540.7 million from $455.7 million last year.
The Day's Losers
was falling 13% to $18.99 after the generic drugmaker posted a second-quarter loss and issued cautious guidance. The company lost $27.8 million, or 37 cents a share, compared with a profit of $15.7 million, or 34 cents a share, a year ago. The results included a $60 million charge to settle antitrust litigation brought by pharmacies and wholesalers over a delay of a generic hypertension drug, and were well below the consensus estimate of a profit of 7 cents a share. The company said its third-quarter and fourth-quarter results will hover near the break-even level, compared to consensus estimates of 89 cents and $1.20, respectively. Andrx said a number of difficult issues will continue to pressure earnings in the second half of 2002.
Annuity & Life
plunged 50% to $6.40 after the company warned that it will post a second-quarter loss on charges. The company said that, due to a decline in the financial markets, the assets supporting its annuity reinsurance contract with
haven't met estimates. Annuity & Life will record an additional $24 million in charges to account for the shortfall, but the company said the strength of its business remains unchanged. The company also added that accounting rules will require it to restate its 2001 and first-quarter 2002 results to account for the changes.
lost 2% to $39.55 after the company missed second-quarter estimates by 2 cents. Profits were up 14% in the quarter to $42.9 million, or 64 cents a share, from $36.8 million, or 58 cents a share, a year ago, but fell short of the consensus estimate of 66 cents. Sales were up to $516 million from $496 million last year.
Human Genome Sciences
shed 1% to $14.78 after it said its second-quarter loss almost doubled as revenue plunged from a year ago. The company lost $46.5 million, or 36 cents a share, compared with a loss of $24 million, or 19 cents a share, a year ago. Analysts had been looking for a loss of 35 cents. Revenue fell to $5.3 million as the company's exclusive relationship with a consortium of drug companies ended.
fell 6% to $28.91 after posting a wider second-quarter loss and announcing plans to offer $125 million in convertible notes for sale. The drugmaker lost 48 cents a share in the quarter, compared with a loss of 46 cents a year ago. Analysts had been looking for a loss of 59 cents. Increased costs for research and marketing hurt the company's results, and it said the convertible note offering will help to pay off existing debt and will be used for general corporate purposes.