Stocks to Watch Friday: Xerox, Ericsson, AT&T, MetLife

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Xerox

(XRX) - Get Report

said underlying second quarter earnings will fall short of market expectations, and will likely be in line with the first quarter, when the company announced earnings of 30 cents per share. The

First Call

estimate of 13 brokers for the second quarter was for 42 cents a share.

Mergers, acquisitions and joint ventures

AT&T

(T) - Get Report

announced it had closed its $44 million purchase of

MediaOne

, making it the nation's largest owner of cable television systems,

The Wall Street Journal

reported.

Boeing

(BA) - Get Report

said it will sell a military jet parts fabrication business employing 1,700 in St. Louis. The 1.7 million-sq. ft. facility is operating at 40% capacity as Boeing winds down work on its aging F-15 fighter line. Boeing wants to sell it as part of a two-year-old streamlining program.

Boeing also announced it has been awarded an $8.96 billion U.S. defense contract to build 222 new F/A-18E/F jet fighters for the

Navy

over the next five years, the

Pentagon

said.

Charles Schwab

(SCH)

and Swedish telecom firm

Ericsson

(ERICY)

have agreed to form an alliance to joint develop wireless investing services, based on the "Wireless Application Protocol," of which Ericsson was one of the original founders. It allows users to surf the Net using a mobile phone.

Covad Communications

(COVD)

said it would buy privately held

BlueStar Communications

in a deal valued at $202 million. Covad provides high-speed digital communications over phone lines, and the deal will enhance expansion into small cities and rural areas, Covad said.

MetLife

(MET) - Get Report

said it was selling its 48% stake in

Nvest

(NEW) - Get Report

to

CDC Asset Management

, a French asset management company. MetLife expects to net $858 million for the sale, now subject to regulatory approval.

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Earnings/revenue reports and previews

Adobe Systems

(ADBE) - Get Report

also topped estimates. The graphic design software maker posted second-quarter earnings of 51 cents a share, better than the 12-analyst estimate of 48 cents. The year-ago earnings of 35 cents included a pre-tax restructuring charges of $15.3 million.

Looking forward, Adobe said it sees 25% revenue growth in each of the third and fourth quarters of 2000. It also named Murray Demo as CFO from interim CFO.

Linux provider

Red Hat

(RHAT)

posted a first-quarter loss of 2 cents a share, narrower than the four-analyst expected loss of 4 cents and the year-ago loss of 8 cents a share.

NBTY

(NBTY)

said it sees a negative impact on third-quarter results because of weakness in the British pound.

Perot Systems

(PER) - Get Report

said 2000 diluted earnings-per-share, excluding items, may not meet estimates. The current eight-analyst estimate calls for 70 cents a share. The company also said it sees flat full-year 2000 revenues compared with those of 1999.

UnionBanCal

(UB)

said it is lowering its profit expectations for the second quarter and now sees earnings of 77 cents to 82 cents a share. The current 12-analyst estimate is for 88 cents a share. The company cited lower asset quality and said it will take a $70 million loss provision.

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