Thursday's Winners & Losers: Qwest, DuPont, Circuit City, AT&T - TheStreet

Thursday's Winners & Losers: Qwest, DuPont, Circuit City, AT&T

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(Updated from 12:31 p.m. EDT)

Qwest Communications

(Q)

will cut 11,000 jobs by the end of 2001 in an effort to streamline operations after its recent merger with

US West

. Also, the company said it foresees revenue of $18.8 billion to $19.1 billion, above its previous forecast of $18.5 billion. The increased revenue was attributed in part to a successful execution of its merger plan. Qwest also upped its forecast for 2001 to between $21.3 billion and $21.7 billion from $21 billion.

DuPont

(DD) - Get Report

warned that its earnings for the year will miss estimates. The company said it now expects earnings to be $2.85 to $2.95 a share before items, falling below the

First Call/Thomson Financial

16-analyst estimate of $3.01. It blamed the shortfall on substantially higher-than-expected increases in energy and raw materials costs.

Circuit City

(CC) - Get Report

also warned that it will miss second-quarter earnings because of its decision to stop selling major appliances. The company cut its earnings forecast 2 cents to about 21 cents a share, which is well below the 16-analyst estimate of 27 cents a share.

Mergers, acquisitions and joint ventures

At its next board meeting later this month,

AT&T Wireless

(AWE)

will discuss the possibility of merging with

Nextel

(NXTL)

, among other options to help boost its stock,

The Wall Street Journal

reported. If the two companies merged, they would have 18 million customers and would be among the top 3 wireless companies in the country.

TheStreet.com/NYTimes.com

joint newsroom wrote more about the

possible merger in a separate story.

FedEx

(FDX) - Get Report

and its longtime rival, the

U.S. Postal Service

are teaming up to explore ways to challenge their mutual competitor,

United Parcel Service

, according to

The Wall Street Journal

. The companies are talking about sharing express and ground deliveries, including the possibility of FedEx delivering all Priority Mail and Express Mail and the postal service taking on slower FedEx ground parcels. Putting FedEx drop boxes in post offices is also under consideration.

Time Warner

(TWX)

, which is merging with

America Online

(AOL)

, plans to buy

Africana.com

, the Web site aimed at black Internet users started by Harvard University professor Henry Louis Gates Jr.,

The Wall Street Journal

reported.

The

Journal

quoted a source familiar with the negotiations as saying that Time Warner will pay at least $10 million. Gates and another Harvard professor, Kwame Anthony Appiah, both of whom would remain as consultants on the site, own half of the site along with four other partners, including music producer Quincy Jones. The remaining half is owned by outside investors.

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Earnings/revenue reports and previews

Nordstrom

(JWN) - Get Report

reported that its same-store sales for August were down 6%. The company attributed the fall to a revenue decline in the central states region.

After Wednesday's Close

Great Atlantic & Pacific

(GAP)

said that it expects to post second-quarter on-going earnings between 12 cents a share to 14 cents, down from the year-ago 45-cent profit. The food retailer, also known as A&P, blamed the decline on high utility rates and slow sales. The four-analyst estimate expects A&P to report a 6-cent profit. A&P said that its second-quarter sales would be up approximately 7%, with same-store sales up 1.5%.

JLG Industries

(JLG)

posted fourth-quarter earnings of 61 cents a share, topping the seven-analyst estimate of 60 cents and up from the year-ago 49-cent profit.

Organic

(OGNC)

said that it would not see profitability in the third quarter due to slow revenue growth. The Web-consulting firm said it expects to post a profit by the second quarter of 2001 and forecasts its third-quarter revenue will grow 5% sequentially from the second-quarter $37.2 million report.

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Analyst actions

United Airlines'

parent

UAL

(UAL) - Get Report

hit some

Merrill Lynch

turbulence after the firm's analysts Candice Browning and Mike Linenberg slashed its September EPS view to 30 cents from $2 and full-year estimates to $5.80 from $8.25 due to the company's operational problems. The

First Call/Thomson Financial

11-analyst estimate for the third quarter was $1.75 and for the year was $7.84.

Meanwhile,

Credit Suisse First Boston

said it expects

Intel's

(INTC) - Get Report

"demand momentum" to continue well into 2001.

Upgrades

Canadian Pacific

(CP) - Get Report

: UP to intermediate buy from accumulate at Merrill Lynch; price target UP to 37 from 35.

Convergys

(CVG)

: NAMED to Focus 1 list at Merrill Lynch; price target UP to 66 from 58.

Household International

(HI) - Get Report

: UP to buy from outperform.

Peco Energy

(PE) - Get Report

: UP to top pick from buy at

Donaldson Lufkin & Jenrette

.

Downgrades

Boeing

(BA) - Get Report

: DOWN to buy from strong buy at

Deutsche Banc Alex. Brown

.

Blackrock

(BLK) - Get Report

: DOWN to neutral from buy at

Lehman Brothers

.

Dollar Thrifty

(DTG)

: DOWN to market outperform from trading buy.

Litton Industries

(LIT) - Get Report

: UP to buy from strong buy at Credit Suisse First Boston.

Marriot International

(MAR) - Get Report

: DOWN to outperform from buy at

Salomon Smith Barney

.

MP3.com

(MPPP)

: DOWN to market performer from long-term attractive at

Robertson Stephens

.

NL Industries

(NL) - Get Report

: DOWN to neutral from outperform at

Morgan Stanley Dean Witter

.

Organic

(OGNC)

: DOWN to buy from market perform

at Donaldson Lufkin & Jenrette

; DOWN to market perform from market outperform at

Goldman Sachs

.

Providian

(PVN)

: DOWN to outperform from strong buy.

Sun Life

(SLC)

: DOWN to neutral from outperform at Salomon Smith Barney.

UAL

(UAL) - Get Report

: third-quarter EPS DOWN to 30 cents from $2.00 at Merrill Lynch; fiscal 2000 DOWN to $5.80 from $8.25 a share.

Initiations

Evolve

(EVLV)

: NEW buy at Credit Suisse First Boston.

Liberate Technologies

(LBRT) - Get Report

: NEW buy at Credit Suisse First Boston.

Group Moves

Donaldson Lufkin & Jenrette downgraded three energy stocks due to their recent price appreciation:

  • Duke Energy (DUK) - Get Report: DOWN to market perform from buy; fiscal 2001 EPS UP to $4.60 from $4.55 a share; price target UP to 83 from 72.
  • Constellation Energy Group (CEG) : DOWN to buy from top pick; price target UP to 48 to 49 from 44 to 45;

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Offerings and stock actions

After Wednesday's Close

Albany Molecular Research

(AMRI)

said it has filed with the

Securities and Exchange Commission

for a 4.1 million share secondary offering.

Broadview Networks

, an Internet access and service provider, said it withdrew plans for a 7 million share IPO, citing poor market conditions.

Swiss-based

Novartis

(NVS) - Get Report

eye-care division said Novartis has bought 56% of

Wesley Jessen VisionCare

and that it has extended its tender offer for the contact-lens maker until Monday. The tender offer was initially up for expiration today.

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Miscellany

IVAX

(IVX)

said that a California federal judge rendered a decision that could soon have the company marketing a generic form of

Bristol-Myers Squibb's

(BMY) - Get Report

cancer treatment Taxol. In August, the

Food and Drug Administration

gave IVAX tentative approval to sell its drug paclitaxel, providing that IVAX settle its patent dispute with Bristol Myers and

BioScience

, which hold patents for the dosage forms of paclitaxel.

Judge William Byrne ordered Bristol Myers to register ABI's patent in the FDA's Orange Book, which contains patents for drugs already on the market. Usually, an Orange Book listing prevents the FDA from approving generic drug rivals for up to 30 months, allowing patent disputes to be processed in the judicial system. According to an IVAX spokesperson, Byrne threw out his earlier decision, saying that he didn't have jurisdiction over the matter, and ordered the ABI patent to be stricken from the Orange Book.

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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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