Updated from 2:47 p.m.
( MOT) said it was extending its current growth forecast until 2003, providing good news in a time when most companies are warning. The Finnish mobile-phone maker, the world's largest, said it expects 2001 growth to come in at the high end of a range between 25% and 35%, while both 2002 and 2003 would grow by the same factor.
The company also said that it would reach 1 billion mobile-phone users by the first half of 2002, knocking its estimate forward about six months. Previously, Nokia had said it would pass the 1 billion mark by the end of 2002. Lots of customers equals market share, so it should come as no surprise that Nokia was touting the fact it has 30% of the mobile-phone market, close to double that of American competitor
( ERICY) and nearly triple that of Swedish
Buried in the press release about the future forecast were a handful of interesting tidbits, also future-focused.
Nokia said it was targeting the emerging market in W-CMDA technology, one of many competing standards in the third-generation wireless market. The company will provide W-CDMA network technology for
( AWE) in a deal it valued at more than $1 billion. (Officially, Nokia has not signed the contract, but it does have a letter of intent.)
Additionally, it said it was continuing to focus on Asian markets with the rollout of new second-generation CDMA handset phone models.
And will handheld computing surpass personal computing as a dominant force? Well, Nokia thinks so, saying that by 2002 it believes that Web-connected handsets will surpass the PC. Right now, as of the year 2000, the company said that there were approximately 40 million Web-enabled hand-held users, but by 2001 that number could reach 180 million.
Finally, Nokia also said that it will be looking to become a dominant force in the replacement market, allowing people to trade in yesterday's cell-phone behemoth for today's foldable, flippable dual-band masterpiece. The company estimated that 40% to 50% of this year's buyers were upgrading their old phones, and that the percentage could increase to 70% to 80% in the coming years.
Nokia closed up $6.81, or 15.3%, to $51.38; Motorola was up 63 cents, or 3.4%, to $19; Ericcson was up $1.31, or 10.7%, to $13.63; and AT&T Wireless was up $2.06, or 11.8%, to $19.56.
Mergers, acquisitions and joint ventures
has joined with
( CPQ) to offer keyboards with extra security for online shopping. The keyboards cost $59.95 and have a smart-chip reader. American Express closed up $2, or 3.9%, to $54; Compaq was up $1.63, or 7.2%, to $24.40.
purchased worldwide development and marketing rights to GW1843U89 from
( GLX). Not excited yet? Well, Glaxo's compound with the clinical name has shown promise as a cancer treatment. Gilead will get rights to the compound, which has already undergone Phase I clinical trials, and will reformulate it into something called GS7904L, a liposomal agent.
Gilead said it will then begin pre-clinical development and submit a Investigational New Drug Application in 2001, with hopes of developing a new cancer-fighting drug from the agent.
Specific terms of the deal were not disclosed, but Gilead paid Glaxo an upfront licensing fee and will pay more as the drug passes milestones in its development, including royalties, if the drug makes it to market. Gilead closed up $5.81, or 7.1%, to $87.81; Glaxo Wellcome was up 56 cents, or 0.98%, to $57.88.
announced that it would acquire privately held game developer
. Financial terms of the deal were not disclosed.
In a separate venture, Microsoft and
rolled out an analog Internet-compatible TV in Paris. The software giant hopes to take the lead in the digital interactive television market. Microsoft closed up $3.44, or 6.1%, to $59.88.
, a broadband-equipment company, announced an agreement with
( HWP) to provide hosting of Web sites and e-stores for HP's small- and medium-size business customers.
The Alameda, Calif., company, which provides equipment for high-speed DSL Internet connections and e-commerce Web platforms, said its platforms allow small-business customers to assemble their Web sites and e-stores by simply entering data into template-driven set-up screens. Netopia closed up 50 cents, or 12.5%, to $4.50; Hewlett-Packard was up $2, or 6.1%, to $35.
confirmed that 90% of its shareholders approved the company's merger with
. Seagram closed up $2.88, or 5.8%, $52.19.
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Earnings/revenue reports and previews
announced second-quarter earnings of 69 cents a share, topping a
First Call/Thomson Financial
estimate of 68 cents, which was lowered from a 70 cents after Heinz warned that it would miss estimates. Not only did the company beat lowered estimates, but it also beat the year-ago 63 cents a share.
But, not all was perfect in the land of ketchup, pickles and
tuna. The company said that sales decreased to $2.30 billion from the year-ago $2.34 billion and that its restructuring program, called Operation Excel, would cost $1.2 billion to implement, up from its previous $1.1 billion estimate. Anticipation ¿.is making you wait ¿
For the closing price, which dribbled down 88 cents, or 1.9%, to $45.69.
posted third-quarter earnings that met analysts' expectations amid a 1.9% growth in same-store food sales.
The Cincinnati grocery giant earned $231.4 million, or 28 cents a share, excluding costs related to mergers and one-time expenses, compared with $202 million, or 24 cents a share, in the same period last year. The 17-analyst estimate on First Call/Thomson Financial called for the company to earn 28 cents a share.
Quarterly revenue grew 6.1% to $11 billion, up from $10.3 billion last year. Food store sales also rose 6.1%.
Kroger, which operates the largest retail grocery chain in the U.S., said it opened, expanded, relocated or acquired 35 food stores in the third quarter, compared with 104 stores in the third quarter of 1999. The company also incurred merger-related and one-time expenses of $34.5 million, pre-tax, in the third quarter. For fiscal year 2001, Kroger said it remains comfortable with the consensus estimate of $1.36 a share.
Here's something you can titillate your coworkers with at the company holiday party: Kroger's stock closed down, despite the positive earnings news, lower by $1.13, or 4.4%, to $24.63.
reduced its fourth-quarter financial forecast, citing lowered short-term demand resulting from the buildup of inventory.
The communications chipmaker, headquartered in Milpitas, Calif., said it expects fourth-quarter earnings of 34 cents a share, compared with earnings of 24 cents a share in the same period last year. This falls short of the 20-analyst estimate on First Call/Thomson Financial, which called for fourth-quarter earnings of 36 cents a share.
Fourth-quarter revenue is expected to grow 3% to 4% from third-quarter revenue of $728 million. Prior guidance called for a 10% sequential growth in revenues. LSI also said it expects gross margin to be comparable to the 43.3% in the third quarter, down slightly from prior guidance of 44%. LSI closed up $2.61, or 14.4%, to $20.80.
, a Minneapolis-based supermarket chain, said that the rest of its fiscal year, which ends in March, would be a cold, bitter disappointment. Just like a Minnesota winter! Third-quarter same-store sales -- sales in stores that have been open for a year or more -- were expected to be 3% lower. Earnings will now come in between 36 and 38 cents a share, well off last year's 42 cents and the First Call/Thomson Financial estimate of 52 cents.
But it gets worse. Supervalu also said its fourth-quarter earnings will come in between 45 and 50 cents a share, lower than the year-ago 51 cents and the 62-cent analyst estimate. And the hits kept on coming. Full-year earnings will coast in between $1.77 and $1.84 a share vs. $1.78 in the previous fiscal year, and much lower than the $2.10 a share estimate. 2002 earnings will come in between $2 and $2.15 a share vs. a $2.33 estimate. Supervalu stock was a bargain-basement value at the close today, down $3.63, or 20.9%, to $13.69.
After Monday's Close
( JDEC) reported fiscal fourth-quarter earnings of 8 cents a share, in line with the nine-broker First Call/Thomson Financial consensus.
Credit Suisse First Boston
raised its 2001 EPS to 45 cents from 25 cents. J.D. Edwards closed down $2, or 8.1%, to $22.63.
( NMSS) issued an earnings warning, saying it expected fourth-quarter earnings to be between $1.75 to $2 a share; the eight-broker estimate was looking for $2 a share. The company said refining and marketing margins have retreated from October levels. Fourth-quarter earnings are expected to be down as much as 25% from the third quarter. Murphy closed down $2.38, or 4.2%, to $54.56.
( NMSS) warned on fourth-quarter earnings today. The company said it expects to report earnings between 6 cents and 8 cents per share for the quarter, below the seven-broker consensus looking for 12 cents a share. NMS closed down $9.88, or 52.7%, to $8.88.
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After the company warned about future forecasts last night, analysts dropped forecasts on chipmaker
. Fiscal 2000 earnings per share estimates were cut to $1.22 from $1.26 at
, which also dropped its 2001estimates to $1.58 from $1.62.
also cut its estimates, trimming its 2001 forecast to $1.25 from $1.30, and its 2002 estimate to $1.71 from $1.83. Xilinx closed up $1.88, or 4.5%, to $43.56.
: UP to strong buy from buy at
Credit Suisse First Boston
. Covenant closed up $1.44, or 16.9%, to $9.94.
: UP at Prudential, 2001 EPS to $1.75 from $1.60. The stock closed flat at $45.38.
: DOWN to hold from accumulate at Prudential, 2001 EPS to $1.98 from $2.25. Albertson's closed down $1.50, or 6.2%, to $22.56.
: DOWN at
, 2000 EPS to $2.75 from $2.85. Alcan closed down 6 cents, or 0.2%, to $32.94.
: DOWN at Merrill, 2001 EPS to $2.60 from $3.25. Alcoa closed up 50 cents, or 1.6%, to $31.50.
: DOWN at CSFB, price target to $35 from $50. Certicom closed up $5.06, or 30.8%, to $21.50.
: DOWN at
, 2000 EPS to $1.20 from $1.23, 2001 EPS to $1.40 from $1.60. Circuit City closed flat at $12.75.
( OSI): DOWN to hold from buy at CSFB. Outback closed down $1.75, or 6.6%, to $24.75.
( PD): DOWN to neutral from buy at Lehman. DOWN at Merrill, 2000 EPS to 95 cents from $1.10, 2001 EPS to $2.40 from $3.00. Phelps Dodge closed down $1.69, or 3.1%, to $53.
: DOWN at Prudential, 2001 losses of $1.75 a share from a 31-cent profit. United Therapeutics ended the day down $1.19, or 6.6%, to $16.75.
Asia Global Crossing
: NEW strong buy at Lehman; price target: $19. Asia Global closed up 27 cents, or 6.2%, to $4.58.
Heidrick & Struggles
: NEW accumulate at Merrill. H&S closed down $1.30, or 2.7%, to $46.75.
: NEW accumulate at Merrill. Korn/Ferry closed up 6 cents, or 0.2%, to $30.75.
: NEW buy at CSFB; price target: $14. Luminent closed up $1.75, or 26.7%, to $8.31.
Lehman Brothers sharply increased its forecast for the rallying natural gas industry, upping earnings forecasts across the board. Lehman analysts
and Jeffrey Robinson upped earnings estimates and price targets on the following companies:
- Anadarko (APC) - Get Report: 2001 EPS to $5.70 from $4.60, 2002 EPS to $4.45 from $3.60, price target to $81 from $75. Anadarko closed down $2.69, or 4.4%, to $59.01.
Apache (APA) - Get Report: 2001 EPS to $6.95 from $5.65, 2002 EPS to $6.05 from $4.70, price target to $82 from $75. Apache closed down $2.25, or 4%, to $53.69.
Burlington Resources (BR) - Get Report: 2001 EPS to $3.70 from $2.65, 2002 EPS to $3.90 from $2.50, price target to $46 from $40. Burlington closed up 56 cents, or 1.3%, to $43.19.
Devon Energy (DVN) - Get Report: 2001 EPS to $7.07 from $5.50, 2002 EPS to $4.95 from $3.65, price target to $80 from $75. Devon Energy closed down 88 cents, or 1.7%, to $51.45.
EOG Resources (EOG) - Get Report: 2001 EPS to $4.75 from $3.60, 2002 EPS to $3.75 from $2.65, price target to $53 from $50. EOG closed up 6 cents, or 0.1%, to $46.06.
Kerr-McGee (KMG) : 2001 EPS to $7.65 from $6.80, 2002 EPS to $5.55 from $4.85, price target to $87 from $85. Kerr-McGee closed down $2.38, or 3.7%, to $61.19.
Noble Affiliates (NBL) - Get Report: 2001 EPS to $4.80 from $3.50, 2002 EPS to $3.00 from $1.90. Noble closed down $1.13, or 2.9%, to $37.75.
Ocean Energy( OEI): 2001 EPS to $2.00 from $1.70, 2002 EPS to $1.40 from $1.10, price target to $25 from $23. Ocean Energy closed up 25 cents, or 1.7%, to $14.75.
Pioneer Natural Resources (PXD) - Get Report: 2001 EPS to $2.25 from $1.75, 2002 EPS to $2.05 from $1.10. Pioneer closed down 6 cents, or 0.4%, to $14.69.
Unocal( UCL): 2001 EPS to $4.30 from $3.55, 2002 EPS to $3.25 from $2.60, price target to $48 from $43. Unocal closed up 6 cents, or 0.2%, to $35.38.
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Offerings and stock actions
said it has pushed back a scheduled meeting to vote on the creation of a proposed
tracking stock to Jan. 5, 2001, from this Friday. The company did not say why it had postponed the meeting. Cablevision closed up $3.25, or 4.2%, to $79.94.
Lincoln Electric Holdings
said that since its takeover bid fell through for British engineering firm
, it would reinstate and increase its cash dividend. Also, it announced it would resume its repurchase program of about 2.8 million common shares.
The first cash dividend is 14 cents a share, payable Dec. 22; it replaces the third-quarter one that was suspended. The second cash dividend of 15 cents a share is payable Jan. 13. Lincoln closed up 94 cents, or 5.5%, to $17.94.
Internet holding company
announced that its Chairman and Chief Executive Warren "Pete" Musser had sold 7.5 million shares. Safeguard Scientifics closed up $1.25, or 16.5%, to $8.81.
plans to sell $3 billion in global debt this week, according to sources. The company is attempting to complete a jumbo bond sale in what's been a tough environment for corporate bonds. Verizon is highly rated, but companies have had a hard time selling bonds this year as default rates have increased sharply. Verizon closed up 75 cents, or 1.3%, to $57.75.
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will buy eight more
aircraft, with a total list price of about $700 million. AMR closed up $2.75, or 8.1%, to $36.75.
Online ad firm
( DCLK) announced that it was cutting jobs, but declined to say exactly how many, because of slowing online ad sales. Executive Vice President Jeffrey Epstein at an investors' conference said the reductions will bring the company back to its June 2000 employment level. The company had about 1,980 people at the end of June and had grown to about 2,100 by the end of September. DoubleClick closed up $1, or 8.3%, to $13.
said it named
executive W. James McNerney Jr. chairman and CEO, effective Jan. 1, 2001.
McNerney succeeds L.D. DeSimone, who will remain with the company until April 1, 2001, to ensure a smooth transition. McNerney was most recently president and CEO of
GE Aircraft Engines
, a supplier of jet engines.
GE announced that David Calhoun will replace McNerney. Calhoun has been executive vice president and COO of the unit since June. 3M closed up $11.63, or 11.1%, to $116.63.
( GET), which owns the Grand Ole Opry, said it will post a one-time fourth-quarter charge of about $35 million as a result of either selling or shutting down its Internet unit, Gaylord Digital, by Dec. 31. It will lay off 85 employees in the unit. The company said the move is part of its continuing efforts to focus on its core.
Also, Gaylord said it cut an additional 31 jobs in other parts of the company. Gaylord closed up 75 cents, or 3.4%, to $23.
OK, so Germans love David Hasselhoff and the French love Jerry Lewis. But who do Spaniards love?
( LU), another once-prominent star that's fallen into domestic disfavor in recent months. Today,
, the mobile services unit of Spain's
, announced that it picked Lucent as a supplier in an agreement that it valued at just south of $800 million. In the press release hyping the deal, the agreement "is expected to form the basis for an extended collaboration between the companies in Australia, Italy and Spain."
You see, Lucent was picked to supply
Universal Mobile Telecommunications Services
in Germany, further extending Telefonica Movile's network into German markets. The Spanish unit already has UMTS licenses in Australia, Italy and Spain and is looking to break into other markets. Lucent closed up $1.50, or 9.8%, to $16.81; Telefonica closed up $3.50, or 7.3%, to $51.69.
If you're British and waiting to use the joint financial services offered by
( MER) and
, then you're gonna have to wait. The $1 billion venture called
Merrill Lynch HSBC
, which will provide customers with online access to equity research, as well as a suite of financial and investment services, is going to have its British launch delayed until the first-quarter 2001 so the company can make sure there are no technical glitches.
So instead of the whole shebang, Brits will get access to only equity research. But in Canada and Australian, the Merrill Lynch HSBC service will go ahead as scheduled, launching today in Canada and on Dec. 18 in Australia. Merrill Lynch closed up $5.81 cents, or 9.9%, to $64.75.
announced that it had a killer November, saying that sales in company-owned stores that have been opened at least a year were up 12% over the year-ago period. Total November retail sales, which include sales to both dealer and franchise stores, rose 15%. RadioShack closed up $1.56, or 3.1%, to $52.19.
announced that Vicki Sato had been promoted to president from chief scientific officer. Vertex closed up $8.13, or 13.1%, to $70.06.
After Monday's Close
Dun & Bradstreet
said Monday it would cut 1,000 jobs as part of its financial restructuring plan, which will free up $100 million for investment in 2001. D&B closed up 63 cents, or 2.6%, to $24.75.
Federal Aviation Administration
has proposed fining
nearly $1 million for maintenance violations and flying some aircraft in violation of federal regulations. Alaska Airlines closed up $1.38, or 5.1%, to $28.56.
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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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