Wednesday's Winners & Losers: ICG, Abgenix, WMS, Network Appliance, Longs Drug Stores

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Updated from 1:26 p.m. EST

The price was right for

Price Communications

(PR)

. Today, the company announced that it sold its wireless phone division to

Verizon Wireless

for $1.5 billion in stock and $550 million in debt.

This deal adds Price's wireless holdings in 16 markets, mostly Southern, to Verizon Wireless' international and domestic holdings. Currently, Verizon Wireless is jointly owned by

Vodafone

(VOD) - Get Report

and

Verizon Communications

(VZ) - Get Report

, which was formerly

Bell Atlantic

. Plans for a Verizon Wireless initial public offering were delayed in October.

Price closed up 19 cents, or 0.9%, to $20.88; Vodafone was down 81 cents, or 2.1%, to $37.50; Verizon was down $1.56, or 2.8%, to $54.19.

Mergers, acquisitions and joint ventures

Military-supplies maker

Raytheon

(RTN) - Get Report

agreed to sell its optical systems business to

BF Goodrich

(GR)

. Terms of the deal were not disclosed, but the transaction takes Raytheon's optical business, which includes items such as reconnaissance and laser warning systems, and gives it a new home in BF Goodrich's company, which is more than just tires. Goodrich also has an aerospace division, which accounts for a sizeable chunk of the company's business, some $3.6 billion of the company's $5.5 billion in annual sales.

Raytheon closed down 19 cents, or 0.6%, to $33.75; BF Goodrich was up 6 cents, or 0.2%, to $37.38.

3Com

(COMS)

announced that it has bought

Altheon's

Gigabit Ethernet network Internet card business for $110 million in cash. This will result in a charge in the third quarter, with $25 million written off for research and development. 3Com closed down 44 cents, or 2.8%, to $15.19.

Talks with

General Motors

(GM) - Get Report

? What talks with General Motors?

Reynolds & Reynolds

(REY)

, an Internet business servicer with a focus on automakers, said its talks with

General Motors

, which began in April, had broken off. According to Reynolds' chief executive, GM would have taken a 10% equity stake in Reynolds, making the company the exclusive provider for its dealerships. GM closed up 25 cents, or 0.4%, to $57.81; Reynolds was down 19 cents, or 1%, to $18.25.

Internet Capital Group

(ICGE)

, which has been destroyed lately along with the rest of the Web incubators, announced that its ICG Commerce division will be merging with

Anderson Consulting's

ePValue. Both are e-procurement businesses, which means they help companies with outsourcing. The new entity will be known as ICG Commerce. ICG ended the day down 50 cents, or 5.3%, to $8.88.

Drug companies

Schering-Plough

(SGP)

and ICN Pharmaceutical announced that they have made a pact for the licensing of drugs to treat hepatitis C and other illnesses. Schering-Plough closed down 6 cents, of 0.1%, to $51.94.

After Tuesday's Close

Abgenix

(ABGX)

bought privately held

IntraImmune Therapies

for $9 million in cash. Abgenix ended the day up $8.56, or 13.4%, to $72.50.

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Earnings/revenue reports and previews

Campbell Soup

(CPB) - Get Report

beat analysts' estimates by 2 cents for the first quarter of fiscal 2001, citing a 13% slide in profits from a year ago due to an increase in marketing spending.

The soup-maker said it earned $204 million, or 47 cents a diluted share, compared with $235 million, or 54 cents a share, in the same period a year ago. Analysts expected the company to earn 45 cents a share for the quarter, according to

First Call/Thomson Financial

. Net sales in the quarter rose 1% to $1.8 billion.

The company also said it will purchase 11 million shares of its common stock under existing forward purchase contracts at a cost of approximately $521 million, and it will suspend its 2% annual share repurchase program. Campbell's closed up 94 cents, or 3.1%, to $30.75.

Discount retailer

Consolidated Stores

(CNS) - Get Report

will be cleaning out the toy box. This morning, it announced third-quarter earnings that missed analyst estimates and said the company will be selling its

KB Toys

division to an undisclosed bidder.

The company had earnings of 6 cents a share on net income of $6.6 million, which fell short of last year's quarter, when it had earnings of 7 cents a share.

The earnings expected by analysts polled by First Call/Thomson Financial was for 7 cents a share.

Consolidated Stores said the sale of KB Toys will result in a fourth-quarter charge of between $350 and $400 million. So it's little surprise that the company warned about the upcoming quarter.

Rounding out its disappointing earnings announcement, Consolidated said fourth-quarter earnings, which includes the all-important holiday season, would miss the 67 cent estimate and come in between 62 cents and 66 cents a share. Sales are expected to rise to the low double-digits. Consolidated Stores closed down 69 cents, or 6.5%, to $9.94.

Internet health network

Drkoop.com

(KOOP)

posted wider third-quarter losses, reflecting $48 million of noncash expenses to do with the company's private placement of preferred stock and warrants. The company, which laid off more than 30% of its work force during the quarter, said net loss was $57.9 million, or $1.60 a share, compared with $20.6 million, or 68 cents a share, for the third quarter of 1999.

Total revenue for the quarter was $2.0 million, compared with $2.9 million for the same period last year. The company said its net cash for operating activities fell to $8.5 million from $31.0 million in the third quarter of 1999 as a result of cost reduction efforts.

Drkoop.com also announced the appointment of healthcare executive John Cardwell to lead the company's customer operations. The stock closed down 6 cents, or 7.7%, to 75 cents. Poor Drkoop.com.

Sotheby's Holdings

(BID) - Get Report

, which has been rocked in recent months after a price-fixing dispute with the federal government, reported a third-quarter loss of 45 cents a share, better than the 52 cent loss estimate but worse than the year-ago loss of 41 cents.

The future isn't looking so good, either. The company said that its fourth-quarter and fiscal year will come in below estimates as the company restructures in the wake of a $512 million legal settlement with consumers regarding that price-fixing dispute. Sotheby's closed down $2.13, or 8.7%, to $22.19.

It's a grim, overcast day for

Sunbeam

(SOC)

, the home-goods maker. The company, the stock price of which traded as high as $53 just two years ago and closed yesterday at 69 cents a share, won't be paying its bills on time. Or even this year.

In a note at the bottom of a press release announcing its third-quarter earnings, the company said that it amended its existing credit agreement with its lenders and will be deferring November's principal and fee payments until April 10, 2001. The company will also waive its financial covenants through December 2000, at which point they will be redrafted to reflect Sunbeam's lousy performance.

Making matters worse, Sunbeam announced third-quarter losses of 75 cents a share, much worse than what analysts expected -- a-57 cent loss. Last year, the third quarter came in with a 35 cent loss. Jerry Levin, chairman and chief executive, said that consumers were seeking out Sunbeam products at a retail level, citing rising point-of-purchase impulse buys, but those words rang a little hollow in light of the negative earnings and debt deferment.

And Levin said he's wary about the future. "Given some of the negative economic trends we have seen in September and October, we are cautiously approaching the next several months, as we expect that retailer and consumer uncertainty relative to the economy will create an overall unfavorable retail environment in the fourth quarter." Sunbeam closed down 6 cents, or 9.1%, to 63 cents.

TD Waterhouse

(TWE)

released fourth-quarter earnings of 11 cents a share, topping the First Call/Thomson Financial estimate of 10 cents and the year-ago 6 cents. Fourth-quarter revenues grew 42% to $359 million.

This ends TD Waterhouse's year, which came in above expectations. The fiscal 2000 picture was a pretty one, coming in at 55 cents a share, edging out the 54 cent estimate and crushing the year-ago 28 cents. Revenues increased 64% to $1.57 billion. The stock ended the day down 19 cents, or 1.1%, to $16.56.

Auto-parts maker

Tenneco

(TEN) - Get Report

said it will have a solid 2001, with earnings coming in between $415 to $425 million, a definite gain over this year's expected earnings between $355 and $365 million.

Of course, this good news comes after Tenneco missed third-quarter estimates on Oct. 24 and announced a restructuring plan in which it slashed 700 jobs. The following day, the company saw its debt rating dropped by S&P. The company is also well off its 52-week high of $11.50, closing yesterday at $4.13. Tenneco closed up 19 cents, or 4.6%, to $4.31.

After Tuesday's Close

Analog Devices

(ADI) - Get Report

posted fourth-quarter earnings of 54 cents a share, 4 cents better than the 18-analyst estimate and up from year-ago earnings of 20 cents a share. Also, it is buying back up to 15 million shares for stock option and other employee benefit plans.

Citing its high backlog and strong new orders during the fourth quarter, Analog also said it expects to achieve 7% to 10% sequential revenue growth in the first quarter of fiscal 2001, as well as first-quarter EPS of 58 cents to 60 cents. Wall Street expects the company to earn 54 cents. The company also anticipates that its fiscal 2001 revenue will exceed fiscal 2000 revenue by more than 50%, which would result in fiscal 2001 revenue of more than $3.8 billion.

Merrill Lynch

raised Analog Devices' 2001 EPS to $2.50 from $2.37. Analog Devices closed up $7.75, or 13.96%, to $63.25.

Intimate Brands

(IBI)

, the parent company of

Victoria's Secret

and

Bath & Body Works

, posted third-quarter earnings of 9 cents a share, meeting the 27-analyst estimate and up from year-ago earnings of 8 cents a share.

Separately, the company said CFO and Vice President Michael Newman will leave the company at the end of the year. An external search for his replacement is beginning immediately. The company said Newman is resigning to focus on family, personal and community interests.

UBS Warburg cut Intimate Brands' rating to hold from buy. The stock closed down $1.63, or 7.1%, to $21.19.

Kohl's

(KSS) - Get Report

posted third-quarter earnings of 23 cents, a penny better than the 18-analyst estimate and up from year-ago earnings of 16 cents a share.

The company's third-quarter same-store sales rose 9.4%, while its year-ago same-store sales rose 6.9%.

In fiscal 2001, Kohl's plans to open 55 to 60 new department stores, including about 34 stores in the first quarter of the year. Kohl's closed up 88 cents, or 1.7%, to $53.56.

Longs Drug Stores

(LDG)

posted third-quarter earnings of 19 cents, 10 cents below the six-analyst estimate and down from year-ago earnings of 32 cents a share.

The company attributed the missed earnings to increased competition, lower margins in its pharmacy sales, weakness in its front store and third-party warehouse operations and a general slowdown in retail sales. Longs closed down $2.50, or 10.7%, to $20.81.

Network Appliance

(NTAP) - Get Report

reported second-quarter earnings of 10 cents a share, a penny better than the 21-analyst estimate and up from year-ago earnings of 5 cents a share.

The company, which specializes in network file storage and content delivery, said earnings per share reflect its two-for-one stock splits on Dec. 20, 1999, and March 22, 2000. Revenues were up 109% over the same period last year. Network Appliances closed down $20.13, or 20.9%, to $76.13.

Sycamore Networks

(SCMR)

posted first-quarter earnings of 2 cents a share, a penny better than the 11-analyst estimate and up from its year-ago loss of 2 cents.

Sycamore said it remains optimistic about its ability to generate revenue growth that meets or exceeds the overall current growth of the optical networking market. Sycamore closed up $4, or 6.2%, to $68.44.

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Analyst actions

One day after posting fourth-quarter

earnings that beat the street by a penny a share, Network Appliances saw its rating cut by

Bear Stearns

to attractive from hold, citing slowing business momentum.

In a note from this morning, the analyst said that strong earnings would not continue in the short term "as the law of large number catches up with the company," meaning that expectations cannot possibly continue to go higher. Think of this as a reality check from Bear Stearns, who also added that it was confident about Network Appliance's position in the marketplace and management's ability to oversee its rapid growth.

Upgrades

Apache

(APA) - Get Report

: UP to buy from outperform at

Lehman Brothers

, price target to $75 from $65. Apache closed up $3, or 5.5%, to $58.

WMS Industries

(WMS) - Get Report

: UP to buy from attractive at Bear Stearns. WMS closed up $2.19, or 14.5%, to $17.31.

UnumProvident

(UNM) - Get Report

: UP at Lehman Brothers, price target to $34 from $27. UnumProvident ended the day down $1.25, or 4.4%, to $27.31.

Allstate

(ALL) - Get Report

: UP at

UBS Warburg

, price target to $48 from $42. Allstate closed down 50 cents, or 1.3%, to $38.56.

Downgrades

Lear

(LEA) - Get Report

: DOWN at

ABN Amro

: price target to $41 from $46, 2000 EPS to $4.31 from $4.32, 2001 EPS to $4.60 from $4.85. DOWN at

Salomon Smith Barney

, 2001 EPS to $4.40 from $4.75. DOWN at UBS Warburg, 2001 EPS to $4.40 from $4.70. Lear closed up $1.25, or 5.5%, to $23.88.

Micron Technology

(MU) - Get Report

: DOWN at Lehman Brothers, 2001 EPS to $2.50 from $3.50. Micron closed up $1.63, or 4.9%, to $35.

Anheuser-Busch

(BUD) - Get Report

: DOWN to hold from buy at

Credit Suisse First Boston

. DOWN to outperform from buy at Salomon Smith Barney. The stock closed down $1, or 2.1%, to $46.44.

Bank of America

(BAC) - Get Report

: DOWN at

Goldman Sachs

, 2001 EPS to $5.60 from $5.75, 4Q EPS to $1.22 from $1.35. Bank of America closed down $3.88, or 8.5%, to $42.

TJX

(TJX) - Get Report

: DOWN to market perform from buy at

Deutsche Banc Alex. Brown

. TJX closed up $1.38, or 5.7%, to $25.69.

Triton Network Systems

(TNSI)

: DOWN to buy from strong buy at Deutsche Banc Alex. Brown. Triton closed up 25 cents, or 8%, to $3.38.

Home Depot

(HD) - Get Report

: DOWN at Goldman Sachs, 2000 EPS to $1.15 from $1.17, 2001 EPS to $1.37 from $1.39. The Home Depot closed up 44 cents or 1.1%, to $39.63.

Saks

(SKS)

: DOWN at Goldman Sachs, 4Q EPS to 84 cents from 92 cents. Saks closed down 19 cents, or 1.9%, to $9.50.

Coors

(RKY)

: DOWN to neutral from outperform at Salomon Smith Barney. Coors closed up 88 cents, or 1.3%, to $67.56.

Initiations

HealthSouth

(HRC) - Get Report

: NEW strong buy at

Credit Suisse First Boston

. 12-month price target: $24. HealthSouth closed up $1.25, or 10.8%, to $12.88.

Stilwell Financial

(SV)

: NEW near-term neutral, long-term buy at Merrill Lynch. Stilwell closed down $1.38, or 3.1%, to $43.63.

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Offerings and stock actions

Emmis Communications

(EMMS) - Get Report

was going to separate its radio and TV units and allow both to trade independently. Not so anymore. The company scrapped those plans, citing poor market conditions. It will, however, keep an eye on markets and re-evaluate plans to issue a tracking stock when things improve. Emmis closed down 31 cents, or 1.3%, to $24.69.

Informatica

(INFA)

, which isn't what would be Metallica's new band name if they got advanced degrees (but should be), announced a 2-for-1 stock split set to take place Dec. 14. Informatica closed up $8.50, or 8.1%, to $113.13.

Johnson Controls

(JCI) - Get Report

raised its quarterly payout to 31 cents a share from 28 cents. Johnson Controls closed up 31 cents, or 0.6%, to $56.94.

After Tuesday's Close

Hercules

(HPC)

suspended its quarterly dividend in an effort to save money while it restructures. Hercules closed a little stronger, up by 25 cents, or 1.3%, to $19.25.

Neose Technologies

(NTEC) - Get Report

said it amended its shareholder rights plan to allow its largest shareholder,

Kopp Investment Advisors

, to increase its stake. Kopp will raise its stake to 20% from 14.7%. Under the original rules, Kopp was limited to 15% ownership. Neose's technology is used to synthesize complex carbohydrates for a variety of consumer and industrial uses. Neose closed flat at $30.

Scios

(SCIO)

reported that scientists have concluded that its Natrecor drug performed better than standard- treatment nitroglycerin in relieving symptoms of heart failure. Scios closed up $1.06, or 7.1%, to $16.06.

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Miscellany

IMS Health

(RX)

has a new top guy this morning. The health care information provider announced that David Thomas will be taking over the reins at the company, becoming its new chairman and CEO. IMS closed up $1.88, or 7.5%, to $26.75.

A lot has changed over at

MP3.com

(MPPP)

, like services being completely free. The company will restart its controversial My.MP3.com service at the end of November, just seven months after it was shut down when a

U.S. District Court

ruled that its database of albums violated copyright law. The service is back with two new models: One is a restricted, free model that limits downloads and derives revenue from advertising, and the other is a subscription model, which ditches the ad copy and restrictions.

Yesterday, MP3.com was ordered to pay a $53.4 million settlement with

Universal Music

, a unit of

Seagram's

(VO) - Get Report

, resolving the court case that shut down My.MP3.com in May. And further driving home the "if you can't beat 'em, join 'em" adage, MP3.com sold warrants to Universal in exchange for rights to the company's entire music back-catalog. MP3.com closed up $2.19, or 54.7%, to $6.19; Seagram closed down 56 cents, or 0.99%, to $56.50.

Forget the farmer and the cowman.

SanDisk

(SNDK)

and

Lexar Media

(LEXR)

can be friends. The companies announced that they have settled their patent dispute over whether Lexar's CompactFlash and PC cards violated SanDisk's patent No. 5,602,987. They also settled a second lawsuit over whether SanDisk's SmartMedia products infringed on Lexar's patent No. 5,479,638.

Under the terms of the settlement, Lexar will pay SanDisk an $8 million lump sum and give it 4% royalties on all products that use the SanDisk patent after March 31. In exchange, SanDisk has dropped its suit and will allow Lexar to continue producing CompactFlash and PC cards, and it will pay Lexar a $2 million lump sum.

And, just to spare headaches like this, the companies agreed to settle all future disputes in the next seven years through binding arbitration. SanDisk closed up $2.25, or 3.98%, to $58.81; Lexar was up $1.94, or 36.9%, to $7.19.

After Tuesday's Close

Crown Cork & Steel

(CCK) - Get Report

said CEO William Avery will retire, effective Jan. 5. Avery will stay on as chairman until April. CCK closed down 19 cents, or 2.4%, to $7.75.

Mentor Graphics

(MENT)

named CEO Walden Rhines as chairman. Also, COO Gregory Hinckley was named president and elected to the board. Rhines had been president, and Hinckley had held the additional title of CFO. Mentor closed up 31 cents, or 1.3%, to $24.31.

Sawtek

(SAWS)

named President Kimon Anemogiannis as CEO. He replaces Gary Monetti, who stepped down for health reasons. Sawtek closed up $1.70, or 3.4%, to $51.52.

Sigma-Aldrich

(SIAL)

appointed David Harvey, its president and chief executive, to the additional position of chairman. He succeeds Tom Cori, who is expected to retire as chairman Dec. 31. Sigma-Aldrich closed down 25 cents, or 0.7%, to $37.13.

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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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