Updated from 2:02 p.m. EDT
Software behemoth
Microsoft
(MSFT) - Get Report
posted fourth-quarter earnings of 44 cents, besting the 24-analyst 42-cent prediction and the year-ago 40 cents. The company said it was comfortable with earnings projections for 2001, currently at $1.88 a diluted share. In a conference call with analysts, company officials said they would not reinstitute a stock buyback.
TheStreet.com/NYTimes.com
joint newsroom took a closer look at Microsoft's report in a
story earlier.
SG Cowen
downgraded
Microsoft
(MSFT) - Get Report
to neutral from buy, while
Prudential Securities
lowered its rating to accumulate from strong buy. Meantime,
Lehman Brothers
reiterated its existing buy recommendation on the company.
Storage management software company
Veritas
(VRTS) - Get Report
reported second-quarter earnings of 13 cents a share, a penny ahead of the 24-analyst outlook and up from the year-ago 7 cents.
TheStreet.com/NYTimes.com
joint newsroom was at it again with a
story on Veritas.
Mergers, acquisitions and joint ventures
CNet Networks
(CNET) - Get Report
announced that it would buy
Ziff-Davis
(ZD)
along with its Web subsidiary,
ZDNet
(ZDZ)
, for stock valued at $1.6 billion. The deal that would bring together two of the leading technology information sites on the Internet. For further coverage of the deal, take a look at
TheStreet.com/NYTimes.com's
earlier
story.
Flowers Industries
(FLO) - Get Report
and
Keebler Foods
(KBL)
announced that they are considering alternatives, including the potential sale of Keebler, to maximize shareholder value. Flowers is currently Keebler's largest shareholder, with an approximate 55% stake.
Georgia-Pacific
(GP)
entered a $3 billion stock deal to sell its
Timber Co.
unit to
Plum Creek
(PCL)
. The sale comes one day after Georgia-Pacific agreed to purchase paper maker
Fort James
(FJ)
. Plum Creek will take on $1 billion of Timber Co.'s debt. According to the deal's terms, Timber shareholders will receive 1.37 shares of Plum Creek stock for each share of Timber they hold.
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Earnings/revenue reports and previews
Apple
(AAPL) - Get Report
reported a profit of 45 cents a share, topping the 19-analyst estimate by 1 cent and exceeding the year-ago earnings of 35 cents. Apple is the maker of the edgy iMac computer, but apparently not the seller of quite enough of them: Disappointing iMac revenue led the stock to sell off in
after-hours trading.
TheStreet.com/NYTimes.com
joint newsroom covered the Apple news in a
story Tuesday.
Bank One
(ONE) - Get Report
reported second-quarter earnings of 55 cents a share, missing the 20-analyst estimate of 64 cents and down from the year-ago 83 cents.
Chase Manhattan
(CMB)
listed second-quarter results of 85 cents a share, beating the 17-analyst 83-cent estimate but below the year-ago $1.03 profit.
Citigroup
(C) - Get Report
posted second-quarter earnings of 87 cents a share, topping the 16-analyst 83-cent prediction and the year-ago 71-cent result. Additionally, the financial services giant announced that it plans to split its stock four-for-three, raise its quarterly cash dividend by 17% and repurchase another $5 billion worth of common stock.
Coca-Cola
(KO) - Get Report
posted second-quarter earnings of 37 cents a share, topping the 16-analyst estimate of 41 cents a share and up from the year-ago 38-cent profit.
Commerce One
(CMRC)
reported a second-quarter loss of 10 cents a share, 3 cents narrower than the 22-analyst forecast but wider than the year-ago 9-cent loss. For more on this, check out
TheStreet.com/NYTimes.com
joint newsroom
story.
Donaldson Lufkin & Jenrette
(DLJ)
posted second-quarter earnings of $1.15 a share, topping the six-analyst estimate of 96 cents and up from the year-ago $1.14 profit. The company said that the slumping stock market and rising interest caused a 2.1% decline in profits.
Satellite telecommunications company
GlobalStar Telecommunications
(GSTRF)
posted a second-quarter loss of 98 cents a share, but added that billable minutes of use on its network more than doubled since the first quarter. Analyst consensus estimates pegged the loss at 80 cents a share. Spending on operations and interest expenses was $97 million, below expectations of $125 million. Revenue was $483,000, compared to last year's $177,000. GlobalStar is a mobile satellite telecommunications service.
Hubbell
(HUBB) - Get Report
reported results for the second quarter with sales of $356.6 million vs. $368.6 million last year. Earnings per share were 67 cents, while analyst consensus estimates had called for 60 cents. Sales increased by 2%, driven by gains in the sale of its Wave Pacer DSL assets. Hubbell engineers, manufactures and sells electrical and electronic products for a broad range of commercial, industrial, telecommunications and utility applications.
The world's largest chip maker,
Intel
(INTC) - Get Report
, listed earnings of 50 cents a share, beating the 21-analyst estimate by a penny and almost doubling the year-ago 26-cent result.
TheStreet.com/NYTimes.com
joint newsroom covered the semiconductor giant's
earnings.
UBS Warburg upped its price target on the shares to 190 from 180.
Minimed
(MNMD)
reported second-quarter earnings of 26 cents a share, edging out the 10-analyst estimate and up from the year-ago 16-cent profit. Minimed also set a 2-for-1 stock split.
Proxim
(PROX)
posted second-quarter earnings of 23 cents a share, a penny better than the 10-analyst estimate and up from the year-ago 17-cent profit. The networking products maker also said it set a 2-for-1 stock split.
Travelocity.com
(TVLY)
posted second-quarter losses of 26 cents a share, beating the eight-analyst estimate of a 34-cent loss per share. Additionally, the company said that it expects to have positive earnings by the end of 2001.
Univision
(UVN)
posted second-quarter earnings of 28 cents a share, topping the eight-analyst estimate of a 24-cent profit and up from the year-ago 17-cent profit. The company also set a 2-for-1 stock split.
Analyst actions
SG Cowen
downgraded
Microsoft
(MSFT) - Get Report
to neutral from buy after the company posted second-quarter earnings of 37 cents per share on Tuesday, two cents above consensus estimates. Meantime,
Lehman Brothers
reiterated its existing buy recommendation on the company.
Merrill Lynch
cut its rating on
Tricon Global
(YUM) - Get Report
to intermediate, long-term accumulate from buy and cut its fiscal 2000 EPS estimates to $2.95 a share from $3.25. Merrill also lowered its fiscal 2001 estimates to $3.35 from $3.70.
Yesterday, Tricon Global posted second-quarter earnings of 76 cents a share, topping the analyst estimate of 71 cents and up from the year-ago 60-cent profit, but cut its full-year earnings outlook because of weakness at
Taco Bell
.
Upgrades
Associates First Capital
(AFS)
: UP to near-term buy from accumulate at Merrill Lynch.
Digital Light
(DIGL)
: UP to buy from attractive at
PaineWebber
. 12-month price target: UP to 160 from 110.
Disney
(DIS) - Get Report
: UP to buy from attractive at PaineWebber.
Keebler
(KBL)
: UP to buy from market outperform at
Goldman Sachs
.
Parametric Technology
(PMTC)
: UP to intermediate-term accumulate from neutral at Merrill Lynch.
Siebel Systems
(SEBL)
: 2000 earnings forecast UP to 89 cents a share from 81 cents a share at Donaldson Lufkin & Jenrette.
Triad Guaranty
(TGIC)
: UP to attractive from buy at PaineWebber.
Downgrades
Bausch & Lomb
(BOL)
: DOWN to buy from strong buy at
Deutsch Banc Alex. Brown
.
Boston Scientifics
(BSX) - Get Report
: DOWN to market perform from buy at Deutsche Banc Alex. Brown. DOWN to intermediate-term accumulate from intermediate-term buy at
Merrill Lynch
. 2000 earnings estimate DOWN to $1.10 from $1.15, 2001 earnings estimate DOWN to $1.40 from $1.45 at
Goldman Sachs
. DOWN to market performer from buy at
J.P. Morgan
.
Ceridian
(CEN) - Get Report
: DOWN to outperform from buy at
Salomon Smith Barney
.
Charter One Financial
(CF) - Get Report
: DOWN to neutral from outperform at
Morgan Stanley Dean Witter
.
Compuware
(CPWR)
: DOWN to market performer from outperformer at
Goldman Sachs
.
DoubleClick
(DCLK)
: third-quarter revenue DOWN to $137.9 million from $147.6 million at
Credit Suisse First Boston
.
Newport News Shipbuilding
(NNS)
: DOWN to buy from strong buy at CSFB.
Initiations
Accelerated Networks
(ACCL)
: INITIATED buy at
UBS Warburg
. Price target: 84.
ClickSoftware
(CKSW)
: NEW buy at
Lehman Brothers
. Price-target: 20.
DigitalThink
(DTHK)
: NEW market performer at Goldman Sachs.
MarchFirst
(MRCH)
: NEW intermediate, long-term buy at Merrill Lynch.
Osca
(OSCA)
: NEW outperform at Morgan Stanley. 12-month price-target: 28.
Pitney Bowes
(PBI) - Get Report
: NEW hold at Credit Suisse First Boston.
Sun Life
(SLC)
: NEW outperform at
Salomon Smith Barney
.
Sylvan Learning
(SLVN)
: NEW market performer at Goldman Sachs.
Tellabs
(TLAB)
: NEW buy at
Wit Soundview
.
Group Moves
Donaldson Lufkin & Jenrette
changed estimates on two airlines:
- America West (AWA) : fiscal 2000 EPS estimates DOWN to $1.80 a share from $2.25 a share.
SouthWest (LUV) - Get Report: fiscal 2000 EPS UP to $1.30 a share from $1.05.
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Offerings and stock actions
Support.com
(SPRT) - Get Report
debuted today at a higher-than-expected offering price of $14 a share. The stock was lately up more than 140%.
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