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Stocks to Watch: Schwab Meets Estimates, 3Com Cuts Jobs

Also, Salomon downgrades Kimco Realty, whose largest tenant is Kmart.
Author:

Updated from 9:54 a.m. EST

Charles Schwab

(SCH)

posted fourth-quarter income of 8 cents a share, in line with estimates. Operating revenue fell to $1.1 billion from $1.3 billion.

Earnings Reports & Outlooks

Black Box

(BBOX) - Get Report

earned 81 cents a share in the third quarter, 4 cents ahead of the First Call consensus estimate. Revenue fell 19% to $179 million.

Forest Laboratories

(FRX)

reported third-quarter earnings of 47 cents a share, 3 cents ahead of expectations. Revenue rose 30% to $403.1 million.

Sonic Automotive

(SAH) - Get Report

agreed to acquire the Don Massey Dealerships, the 19th-largest dealership group in the U.S. Sonic expects the acquisition to add 30 cents to 40 cents a share to earnings in 2003. The company also raised its guidance for 2002.

Analyst Actions

Salomon Smith Barney downgraded

Kimco Realty

(KIM) - Get Report

to neutral from outperform based on uncertainty surrounding the situation at

TST Recommends

Kmart

(KM)

, Kimco's largest tenant. Kmart represents 13% of the rents in Kimco's core portfolio.

Merrill Lynch raised its fiscal 2003 estimate on

Nike

(NKE) - Get Report

to $2.85 from $2.74. The firm thinks Nike could hit its $63 price target in the next six to nine months.

Credit Suisse First Boston upgraded

UAL

(UAL) - Get Report

, the parent company of United Airlines, to buy from hold as part of firm's more positive stance on the airline group. Separately, Goldman Sachs upgraded

America West

(AWA)

to market outperform from market perform. Goldman also raised its 2001, 2002 and 2003 estimates on

Midwest Express

(MEH)

, but kept its market perform rating on the stock.

Miscellaneous News

3Com

(COMS)

is cutting 500 employees from its current workforce of around 5,900. The job reductions are part of a plan to help 3Com reach profitability by the end of the fourth quarter of fiscal 2002.