Updated from 2:38 p.m.
You want to see what
( GTW) said after the closing bell yesterday?
headline on the full story says it all: Gateway to Badly Miss Fourth-Quarter Revenue, Earnings Estimates. Gateway closed down $10.50, or 35.6%, to $19.
And Gateway wasn't the only source of bad news last night. Semiconductor manufacturer
lowered forecasts for fourth-quarter revenue, citing lower-than-expected resales "in all geographies"
The company said it expects fourth-quarter revenue "to approximate" third-quarter revenue of $395.4 million. According to
First Call/Thomson Financial
, five analysts expect fourth-quarter revenue of $445.8 million.
While overall resales for the quarter are ahead of the first two months of last quarter, the company expects December resales to be lower than those of September. The San Jose, Calif., company blamed the sluggish resales on reduced inventories by contract manufacturers. Altera closed down $2, or 7.7%, to $23.94.
Mergers, acquisitions and joint ventures
In an effort to promote its mobile Internet service in the U.S.,
formally announced that it is taking a stake of about 16% in
( AWE). The deal is worth about $9.8 billion.
DoCoMo will pay $6.2 billion to AT&T Wireless and another $3.6 billion to the wireless company's parent, battered telecom giant
. DoCoMo's acquisition values AT&T Wireless tracking stock at $23.50 per share, a 31% premium to its closing price Wednesday.
DoCoMo has experience putting 15 million cell phone users on the Internet in Japan. With the deal, DoCoMo gains a commitment from its new U.S. partner to use the Japanese company's standard for a new set of high-speed phone services. For its part, AT&T will be able to use the cash from the deal to pay down some of its heavy debt load.
Although DoCoMo shares ended higher Thursday on the
amid expectations that the company would announce the deal after the market closed, it has yet to recoup losses it took after initial reports of the move were published last Wednesday.
covered what the
deal would mean to both parties in an earlier story. AT&T Wireless closed up 13 cents, or 0.7%, to $18; the big T was up 63 cents, or 3.3%, to $19.63.
Optical networking company
said its switching systems will be installed on
( PHA) national network. Genuity is an Internet infrastructure company. Financial terms of the deal were not disclosed. Ciena closed up $2.94, or 4%, to $75.94; Genuity closed down 16 cents, or 3.5%, to $4.31.
( QTRN) signed a letter of intent to negotiate the purchase of one of
( PHA) clinical development units.
Financial terms were not disclosed. If completed, the deal calls for Quintiles to hire some of Pharmacia's staff in Stockholm. Quintiles closed down $1.06, or 6.6%, to $15; Pharmacia was up 6 cents, or 0.1%, to $61.
After Wednesday's Close
said it will buy two unrelated installation-services firms -- BSI Holdings and Davenport Insulation Group -- for a combined $435 million in cash, assumed debt and 15 million shares of Masco stock.
The home improvement and building products company said the acquisitions will be accretive to earnings next year. Masco closed u 38 cents, or 1.98%, to $19.31.
terminated its agreement to acquire
( NPNT), citing the deterioration in NorthPoint's business, operations and financial condition since Aug. 7, when the companies agreed to merge their digital subscriber line businesses.
Verizon also said it has no obligation to arrange for NorthPoint to receive additional financing. The $800 million acquisition agreement, which was slated for completion next year, called for the companies to combine their DSL businesses to form a national broadband company.
In response, NorthPoint said "Verizon was not entitled to terminate these agreements, and we are exploring all our options, including funding options and legal remedies." Verizon closed up 38 cents, of 0.7%, to $56.19.
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Earnings/revenue reports and previews
Pacific Sunwear of California
said it's comfortable with a fourth-quarter EPS estimate of 40 cents. The 15-analyst estimate is currently 39 cents a share.
Credit Suisse First Boston
raised the stock to buy from hold. The stock closed up $3.81, or 20.7%, to $22.25.
said that it is comfortable with analysts' expectations for the fourth quarter and full year.
The Hartford, Conn., company, which makes Otis elevators and Pratt & Whitney aircraft engines, is expected to report fourth-quarter earnings of 83 cents a share and earnings of $3.54 a share for the year, according to
First Call/Thomson Financial
. The company, a component of the
Dow Jones Industrial Average
, also reiterated that it expects 15% earnings growth for 2001. United Tech closed up $1.44, or 2.1%, to $70.81.
After Wednesday's Close
( ALA) reiterated its earlier growth guidance for this year and 2001, despite mounting concerns about a slowdown in the telecommunications sector.
According to a report, the French telecom-equipment maker repeated that it would meet those earlier estimates, in which it indicated that sales in 2000 should grow 35% to 40%. The report also said that the company continues to expect sales growth of 25% in 2001. Alcatel closed down $3.19, or 5.9%, to $50.50.
posted fourth-quarter earnings of 22 cents a share, 2 cents better than the 14-analyst estimate and up from year-ago earnings of 3 cents a share.
The company, which makes computer storage network parts, said it expects its 2001 revenue to increase 150% to $830 million.
Also, Brocade announced a 2-for-1 stock split. The stock will begin trading adjusted for the split on Dec. 22. Brocade closed up $14.19, or 9.2%, to $167.94.
Cable Design Technologies
posted first-quarter earnings of 36 cents a share, 2 cents better than the three-analyst estimate and up from year-ago earnings of 30 cents.
Sales for the quarter rose 14% to $214.7 million from $187.6 million last year. The provider of high-speed network connectivity products reported 56% growth in fiber-optic connectivity product sales and said the segment also saw 48% sales growth in gigabit-network cables because of the transition to higher speed cables.
Cable Design said it was comfortable with a range of 27 cents to 31 cents a share for second-quarter earnings. The company earned 24 cents a share in the same quarter last year. Analysts expect earnings of 29 cents a share. CDT closed up $1, or 7.1%, to $15.
said November same-store sales were down 1% from the year-ago period. Among its four brands, only its domestic Gap stores posted positive same-store sales numbers for the month.
The company says it remains "cautious" in its fourth-quarter outlook. "The combined shift of Hanukkah to week four of December and the additional weekend prior to Christmas will likely compress spending patterns to later in the month, and could apply additional risk to margins for the quarter,'' said Heidi Kunz, executive vice president and chief financial officer. GPS closed down 88 cents, of 3.4%, to $24.94.
reported a fourth-quarter loss of 34 cents a share, narrower than the nine-analyst estimate of 45 cents and down from year-ago earnings of 72 cents a share. Excluding amortization of intangible assets and in-process research and development, the company had pro forma losses of 33 cents a share. Synopsys closed up $4.13, or 11.8%, to $39.
reported third-quarter earnings of 82 cents a share, beating the 15-analyst estimate of 75 cents and up from year-ago earnings of 60 cents a share. The company, a provider of information technology products and logistics management services, said sales rose more than 20% from a year ago.
The company also said it expects earnings of between 84 cents and 88 cents a share, in the fourth quarter, compared with 67 cents a share, in the year-ago period. Analysts expect fourth-quarter earnings of 86 cents a share. Additionally, Tech Data forecast full-year earnings in the range of $3.06 to $3.10 a share, compared with $2.34 a share in the prior year. The 15-analyst estimate is currently $3.01 a share for the year. Tech Data closed up $2, or 6.99%, to $30.63.
said it's expecting 2000 EPS in the range of between $4.65 and $4.68, before charges. The 13-analyst estimate is currently $4.65. The company, which makes helicopters and other aircraft under the Cessna and Bell brand names, reported earnings of $4.05 a share last year. Textron closed up 63 cents, or 1.3%, to $50.63.
( WIND) posted third-quarter earnings of 12 cents a share, 2 cents better than the eight-analyst estimate, but down from year-ago earnings of 15 cents a share. Wind River closed up $1.81, or 4.8%, to $40.
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In a not-quite-surprising move,
lowered earnings estimates on
warned last night.
ABN Amro cut its 2000 EPS view to 97 cents from $1.02, its 2001 EPS view to $1.20 from $1.55 and its12-month price target to $40 from $60. Goldman lowered Altera's fourth-quarter EPS view to 27 cents from 32 cents and its 2001 EPS view to $1.25 from $1.55. Lehman knocked Altera's 2000 EPS to 97 cents from $1.02 and its 2001 EPS view to $1.20 from $1.40.
Deutsche Banc Alex. Brown
went further by downgrading the stock. Robertson Stephens cut it to long-term attractive from a buy, while Alex. Brown decreased the stock to buy from strong buy. Also, Alex. Brown lowered its fourth-quarter EPS to 27 cents from 32 cents and its 2001 EPS view to $1.30 from $1.60. As noted above, Altera closed down $2, or 7.7%, to $23.94.
Lehman also slashed
( GTW) 12-month price target to $35 from $85. The firm also decreased its 2000 EPS view to $1.60 from $1.85 and its 2001 EPS view to $1.87 from $2.25.
Salomon Smith Barney
got in on the action, too. Bear Stearns cut its 2001 EPS estimate to $1.90 from $2.25, Salomon took it down to neutral from buy, while J.P. Morgan downgraded it to market perform from buy. As noted above, Gateway closed down $10.50, or 35.6%, to $19.
price weakness makes it an attractive entry point. The stock closed down 88 cents, or 3.9%, to $21.38..
: UP to buy from long-term attractive at Robertson Stephens. Bebe closed down 56 cents, or 2.7%, to $20.13.
: 2001 EPS view UP to $1.25 from $1.05 at Goldman. As noted above, Brocade closed up $14.19, or 9.2%, to $167.94.
( STLW): 2001 EPS view UP to 25 cents from 22 cents at Lehman and 2002 EPS view UP to $45 cents from 36 cents. Stratos closed down 94 cents, or 5.6%, to $15.81.
: DOWN to long-term attractive from buy at Robertson Stephens; also, 2000 EPS view DOWN to $2.44 from $2.51 and 2001 EPS view DOWN to $2.80 from $3. AnnTaylor closed down $8.69, or 29.5%, to $20.75.
: DOWN to long-term attractive from buy at Robertson Stephens; also, 2000 EPS DOWN to $1.50 from $1.59 and 2001 EPS view DOWN to $1.12 from $2.01. Cognex closed down 81 cents, or 4.4%, to $17.56.
: DOWN to neutral from outperform at Salomon. Dell closed down $2.56, or 11.8%, to $19.25.
: fourth-quarter EPS view DOWN to 61 cents from 65 cents as Goldman. Also, the firm cut its 2000 EPS view to $1.03 from $1.08 and its 2001 EPS view to between $1.17 and $1.20 from $1.23. Intimate Brands closed down 38 cents, or 2.5%, to $14.94.
: DOWN to underperform from market perform at
Banc of America
. Kellogg closed down 44 cents, or 1.8%, to $24.63.
: fourth-quarter EPS view DOWN to $75 cents from 78 cents at Goldman. Limited closed down 94 cents, or 4.6%, to $19.44.
: DOWN to neutral from outperform at Lehman. PMC closed down $11.34, or 10.96%, to $92.19.
: 12-month price target DOWN to $70 from $100 at ABN Amro and 2001 EPS estimate to $1.26 from $1.31. Lehman said Xilinx may lower revenue guidance Monday.
Credit Suisse First Boston
cut the stock in a group move. Xilinx closed down $4, or 9.3%, to $39.
Applied Micro Circuits
: NEW neutral at Lehman; price target: $60. Applied Micro Circuits closed down $2.56, or 5%, to $48.44.
: NEW buy at CSFB; price target: $60. Stryker closed up 31 cents, or 0.6%, to $53.31.
Credit Suisse First Boston downgraded and cut estimates on several semiconductors:
- Altera: fourth-quarter estimate DOWN to 26 cents from 33 cents and price target sliced to $30 from $73. As noted twice before, Altera closed down $2, or 7.7%, to $23.94.
Atmel (ATML) : price target trimmed to $18 from $32. Atmel closed down $1.28, or 11.7%, to $9.66.
Cypress Semiconductor (CY) - Get Report: fourth-quarter EPS estimate DOWN to 75 cents from 77 cents and price target reduced to $45 from $69. Cypress closed down $3, or 12.4%, to $21.13.
Fairchild Semiconductor (FCS) : DOWN to buy from strong buy; and fourth-quarter EPS estimate DOWN to 83 cents from 84 cents. Price target lowered to $44 from $60. Fairchild closed down 88 cents, or 5.7%, to $14.50.
Integrated Circuit Systems( ICST): fourth-quarter EPS DOWN to 22 cents from 23 cents; and price target lowered to $24 from $30. Integrated Circuit Systems closed down 75 cents, or 4.5%, to $15.88.
Intersil (ISIL) : DOWN to buy from strong buy; and fourth-quarter EPS estimate DOWN to 24 cents from 26 cents. Price target slashed to $46 from $80. Intersil closed down $3.63, or 13.6%, to $23.02.
Lattice Semiconductor (LSCC) - Get Report: DOWN to buy from strong buy; and fourth-quarter EPS estimate DOWN to 34 cents from 35 cents. Price target cut to $28 from $50. Lattice closed down 94 cents, or 5.3%, to $16.63.
LSI Logic (LSI) - Get Report: fourth-quarter EPS estimate DOWN to 33 cents from 35 cents; and price target decreased to $28 from $48. LSI closed down $1.38, or 7.1%, to $18.
Microchip (MCHP) - Get Report: DOWN to buy from strong buy; and price target down to $38 from $60. Microchip closed up 31 cents, or 1.4%, to $23.38.
Silicon Storage Technology (SSTI) - Get Report: DOWN to buy from strong buy; and price target cut to $29 from $45. Silicon Storage Tech closed down $1.63, or 11.9%, to $12.
Xilinx: DOWN to buy from strong buy; and fourth-quarter EPS estimate DOWN to 31 cents from 35 cents. Price target was knocked down to $47 from $100. As noted above, Xilinx closed down $4, or 9.3%, to $39.
CSFB started coverage of major pharmaceuticals:
- Eli Lilly (LLY) - Get Report: NEW hold; price target: $98. Eli Lilly ended the day down 81 cents, or 0.9%, to $93.69.
Merck (MRK) - Get Report: NEW buy; price target: $105. Merck closed down $2.19, or 2.3%, to $92.69.
Pharmacia (PHA) : NEW buy; price target: $72. Pharmacia closed up 6 cents, or 0.1%, to $61.
Pfizer (PFE) - Get Report: NEW buy; price target: $55. Pfizer closed down $1.31, or 2.9%, to $44.31.
Schering-Plough( SGP): NEW buy; price target: $62.50. The stock ended the day down 38 cents, or 0.7%, to $56.06.
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Offerings and stock actions
priced an offering of 10 million share of its common stock at a price of $52.50 a share. AES closed down $3.56, or 6.4%, to $51.88.
( IDPH) approved a 3-for-1 stock split, effective in the form of a stock dividend. IDEC closed down $11.69, or 6.3%, to $174.06.
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The world's largest paper and wood products company
said it wants to sell its Arizona Chemical unit as part of its plan to divest more than $3 billion in assets. International Paper closed down $1.50, or 4.2%, to $33.88.
Level 3 Communications
has named Charles Miller vice chairman. Miller had been president of BellSouth International, a unit of
( BLS). Level 3 closed down $3.44, or 11.3%, to $26.88; BellSouth was down 88 cents, or 2.1%, to $41.81.
said it will cut another 250 jobs and that 500 employees have accepted early retirement as part of an overhaul it unveiled six weeks ago. The company said the additional eliminations, which will save the company about $150 million annually by the end of 2001, are necessary because the company is still suffering from poor drilling results, which will result in a $200 million oil and gas write-down charge in the fourth quarter. The company is making cuts in exploration expenses, procurement costs and from other business operations. Marathon closed down $1.13, or 4.1%, to $26.38.
After Wednesday's Close
( ARBA) named Robert M. Calderoni executive vice president and chief financial officer, replacing one of the company's co-founders.
Calderoni will replace Edward P. Kinsey, who co-founded Ariba, a business-to-business company, and has been financial chief since the company's inception. After helping Calderoni make the transition to his new position, Kinsey will retire to spend more time with his family. Calderoni was most recently with adhesives and label maker
, where he was the CFO. Ariba closed up $4.38, or 7.6%, to $62.25.
Standard & Poor's
has announced that
when its acquisition by Europe's
is a done deal.
wrote about how the move will
affect MetLife in a separate story.
This morning, the stock was raised to an outperform from neutral at Salomon. MetLife closed up $1.75, or 6.3%, to $29.63; Seagram was down $1.88, or 3.8%, to $47.63; Vivendi was down 19 cents, or 1.5%, to $12.38.
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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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