Ticker-Tape Parade: Applied Micro, Merrill Lead Warnings Headlines - TheStreet

(Updated from 8:06 a.m. ET)

Applied Micro Circuits

(AMCC)

warned last night, yet another victim of the dismal corporate climate. The company now expects first-quarter revenue of $40 million to $45 million, down 63% to 67% from the previous quarter, and it expects to lose 4 cents to 6 cents a share, not including charges for restructuring. In April, the company had told analysts to expect a decline of up to 42%. Analysts expected the company to post revenue of $73.3 million and breakeven earnings.

For more on Applied Micro's misery, read

Caroline Humer's

article from last night.

Earnings Reports & Warnings:

Eaton

(ETN) - Get Report

warned that second-quarter EPS would come in 20% to 30% lower than the analysts' expectation of $1.21. That guidance implies earnings of 85 cents to 97 cents a share.

Family Dollar Stores

(FDO)

announced third-quarter EPS of 31 cents, lower than the expected 32 cents, but better than the year-ago 29 cents.

KB Home

(KBH) - Get Report

posted second-quarter EPS of $1.07, better than the expected 96 cents and the year-ago 68 cents. The homebuilder raised its full-year 2001 EPS forecast to between $5.10 and $5.20, better than the $4.84 expected by analysts.

Kopin

(KOPN) - Get Report

warned its second-quarter loss would be between 20 cents and 23 cents a share, wider than the 15-cent loss expected by analysts.

LNR Property

(LNR)

announced second-quarter EPS of $1.10 vs. year-ago 96 cents. Analysts expected 97 cents. LNR said fiscal 2001 EPS would come in between $3.70 and $3.85, compared with consensus EPS estimate of $3.83.

Merrill Lynch

(MER)

warned that second-quarter per-share earnings would come in between 52 cents and 57 cents, much lower than the 82 cents a share expected by analysts. Lower trading volumes and volatility cut into the brokerage's trading profits, while weakness in the investment banking department sapped once-hefty fees.

National Service Industries

(NSI)

said third-quarter EPS was 55 cents, excluding all charges. The company took a 25-cent charge for divesting French and Australian operations, however, which would put its diluted EPS at 30 cents, well short of the year-ago 51 cents. Analysts expected 54 cents.

Robert Half International

(RHI) - Get Report

warned that second-quarter EPS would come in between 20 cents and 22 cents, lower than the analyst estimate of 25 cents.

Sonic

(SONC)

reported third-quarter EPS of 41 cents, higher than the 40 cents expected by analysts and the year-ago 33 cents. The company expects earnings growth of 18% to 20% in the fourth quarter and fiscal 2002.

Tecumseh Products

(TECUA)

warned that second-quarter EPS would be between 85 cents and 95 cents, much lower than the previous EPS guidance of $1 to $1.10.

On the Analyst Front:

Lehman Brothers

adjusted its fourth-quarter EPS estimates for

Cisco Systems

(CSCO) - Get Report

to fit more in line with Wall Street's consensus and said the company would see "subdued near-term trends." The firm reiterated its buy rating and positive long-term outlook on the stock.

IBM

(IBM) - Get Report

,

Sun Microsystems

(SUNW) - Get Report

and 37 other tech giants had their growth targets hacked by the

Goldman Sachs

technology research department. In an ambitious, far-reaching note, Goldie's analysts, including large-cap tech analyst Laura Conigliaro and software analyst Rick Sherlund, said estimates were still too high and that the fourth-quarter recovery could be much smaller than many think.

Microsoft

(MSFT) - Get Report

,

Oracle

(ORCL) - Get Report

and nearly 20 other software companies had their calendar 2001 revenue and EPS estimates trimmed back by Goldie's Sherlund, who said that an industry recovery would be slower-than-anticipated. Previously, he had assumed that the December quarter would see a bounce, but now believes that's not really the case. Other names mentioned included

Ariba

(ARBA)

,

Broadvision

(BVSN) - Get Report

,

Commerce One

(CMRC)

,

FreeMarkets

(FMKT)

and

Siebel Systems

(SEBL)

.

Miscellaneous News:

Alliance Gaming

(ALLY) - Get Report

said it will take a $6.6 million charge in the fourth quarter for terminating a deal to sell a line of slot machines to outside investors. The company also gave higher guidance for fiscal 2001 and 2002.

Diagnostic Products

(DP)

said it received

Food and Drug Administration

approval to market four assays to help in the detection of prostate cancer.

EarthLink

(ELNK)

raised the price of its unlimited dial-up Internet service to $21.95 a month from $19.95.

LifePoint Hospitals

(LPNT)

named CFO Kenneth Donahey its new chairman and CEO.

Today's Earnings:

3Com

(COMS)

posts fourth-quarter numbers, expected at a 57-cent loss vs. year-ago 36-cent loss. After the bell.

Emmis Communications

(EMMS) - Get Report

first-quarter results expected at a 28-cent loss vs. year-ago 8 cent per share profit. No time given.

H.B. Fuller

(FULL)

second-quarter EPS expected at 81 cents vs. year-ago $1.26. No time given.

Family Dollar Stores

(FDO)

third-quarter EPS expected at 32 cents vs. year-ago 29 cents. No time given.

Kroger

(KR) - Get Report

first-quarter EPS expected at 38 cents vs. year-ago 33 cents. Before the bell.

Palm

(PALM)

fourth-quarter expected at a 19-cent loss per share vs. year-ago 3-cent per share profit. After the bell.

Supervalu

(SVU)

first-quarter EPS expected at 43 cents vs. year-ago 53 cents. No time given.

Doug Kass' Required Reading:

Walt Crowley's editorial in

The New York Times

, called "

Serfs on the Web." (Registration required.)

On the Economic Lookout:

(

Forecasts are from

Reuters

. Times are Eastern. For a longer-term economic calendar and more, see

TSC's

Economic Databank.)

9 a.m.:

Federal Open Market Committee. Source:

Federal Reserve. The Fed's monetary policymaking committee holds its fifth meeting of the year in Washington. Any change in monetary policy will be announced tomorrow around 2:10 p.m. ET.

10 a.m.:

New Home Sales for May. Source:

Census Bueau. Forecast: 897,000. Previous: 894,000.

10 a.m.:

Consumer Confidence for May. Source:

Conference Confidence Index. Forecast: 115.7. Previous: 115.5.

In Overnight Activity:

PMC-Sierra

(PMCS)

fell more than 3%, getting dragged down by Applied Micro Circuits, which warned. If Applied Micro trades lower during the day session, then other chipmaking outfits could as well.

Cheap Tickets

(CTIX)

stock got 33.9% cheaper in post-close action after the company warned about lower earnings and revenue in the upcoming second quarter. The company said that technology problems caused booking errors, resulting in lower sales.

For an extended take on late-night action, be sure to check out

The Night Watch.

Sources & Definitions:

All analyst EPS estimates are from Thomson Financial/First Call, unless otherwise noted. All economic forecasts are from

Reuters

, unless otherwise noted. All times are Eastern, always. After-hours quotes courtesy of Instinet, unless otherwise noted.