Updated from 2:36 p.m.

Hey, you know the drill. You reap what you sow. And after

Apple

( GTW) announced that its first-quarter revenue figures would

come in at $1 billion, $600 million less than the analysts' expectation, the analysts returned the favor.

Here are the highlights:

  • Lehman Brothers said, "We continue to remain cautious on the stock," and dropped its 2001 earning estimate to a 15 cent a share loss from a $1.15 profit.
  • Credit Suisse First Boston made a bunch of comments, not only on Apple's disappointment, but also on the entire sector. "We can no longer ignore signs of shriveling demand," said analyst Kevin McCarthy, who downgraded Apple to hold, along with other personal-computer makers Gateway( CPQ) and Compaq( CPQ). He also reduced earnings estimates on IBM (IBM) - Get Report, Dell( HWP) and Hewlett-Packard( HWP).
  • Merrill Lynch analyst Steven Fortuna said, "This does not come as a surprise to us, although the magnitude of the shortfall surpassed even our low expectations." He cut Apple's 2001 EPS estimate to a 65 cent loss from a 90 cent profit.

Apple's first-quarter shortfall forced it to lower its guidance for fiscal 2001 sales to $6 billion to $6.5 billion, well shy of the previous $7.8 billion consensus.

TheStreet.com

wrote

more about the announcement in a separate story.

Apple closed down $2.69, or 15.8%, to $14.31; Gateway closed down $1.96, or 10.4%, to $16.82; Compaq was down $4.30, or 17.6%, or $20.10, IBM was off $6.63, or 6.4%, to $96.75; Dell was down $2.25, or 11.1%, to $18; and Hewlett-Packard was down $3, or 8.6%, to $32.

Mergers, acquisitions and joint ventures

Irish eyes, they're smiling over

Celestica's

(CLS) - Get Report

just-announced $1 billion three-year deal to make two-way pagers, cell phones and other handheld devices for

Motorola

( MOT).

And to help with this manufacturing, the Canadian company bought Motorola's Irish manufacturing operations for $70 million, subject to postclosing agreements. As a result, Celestica gets 1,200 new employees. Welcome to the company.

Motorola announced that 750 jobs will be cut at its Dublin manufacturing plant as a result of the deal. Only 650 of its total Dublin workforce of 1,400 will be offered the chance to transfer to Celestica.

Motorola said it remained committed to its other Irish operations and was hiring more workers for its plant in southern Ireland. Celestica closed up $3.19, or 5.4%, to $62.81; Motorola was off $1.19, or 6.3%, to $17.81.

Gemini Genomics

(GMNI)

is a clinical genomics company. (Uh huh.) Well, that means it does the lab work, creating the data that help identify the relationship between human genes and disease. Well, the company wants to do more than just run the tests; now it wants to help create the treatments, too.

The British company announced a partnership with Danish

Genmab

, which

Medarex

( MEDX) owns a 32% stake in, to create drugs based on its antibody research. Together, the pair will focus on osteoporosis, cardiovascular disease, diabetes and obesity. According to the press release touting the new pairing, Gemini will help identify areas in which it might be possible to produce genetic-based therapy while Genmab will help identify ways to turn that into a drug treatment. Gemini closed up $1.38, or 19.6%, to $8.38; Medarex was up $1.50, or 3.9%, to $39.75.

Microsoft

(MSFT) - Get Report

announced that it is in talks to buy or partner with European software companies in an effort to create a comprehensive software package for small and mid-sized businesses. Microsoft closed down $3.19, or 5.3%, to $56.69.

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Earnings/revenue reports and previews

Warning: Asbestos can kill your bottom line, too.

Armstrong Holding's

( CMB) major subsidiary,

Armstrong World Industries

, announced that it has filed a Chapter 11 reorganization plan to help clear up asbestos settlement liabilities, which the company believes could sink it..

Armstrong said that business would continue as usual, with suppliers continuing to receive payment after the Chapter 11 filing. The company also said it had received a $400 million commitment for a debtor-in-possession loan from

Chase Manhattan

( CMB), which will be submitted to the bankruptcy court today.

This is the latest in a string of bad news from the floor coverings and ceiling maker. On Nov. 22, it reported that it had failed to repay $50 million in commercial paper, which constitutes a default under a long-term $450 million credit facility. On Oct. 26, Armstrong's general counsel and senior vice president, Deborah Owen, resigned, just a month after the company's president of flooring operation retired and six weeks after the death of its vice president of human resources.

Armstrong closed down 13 cents, or 11.8%, to 94 cents; Chase was down $1.25, or 3%, to $40.06.

Circuit City

(CC) - Get Report

warned today that it would report a greater-than-expected third-quarter loss which it blamed on lower-than-anticipated gross margins and sales at its retail consumer electronics stores and the cost of store remodelings in Florida.

The The Richmond, Va., company said it expects to post a loss for the Circuit City Group of 31 cents to 33 cents a share, including the costs associated with remodeling and merchandise markdowns in its jettisoned appliance business. Excluding these costs, the company said its third-quarter loss is expected to be 3 cents to 5 cents a share. Thirteen analysts polled by

First Call/Thomson Financial

expect the company to post a loss of 8 cents a share for the quarter.

Circuit City expects to release third-quarter earnings for the company, the Circuit City Group and its used-car retail chain,

CarMax

(KMX) - Get Report

, on Dec. 18.

Lehman Brothers

analyst Alan Rifkin cut his earnings estimate for Circuit City, citing tapering sales after the Thanksgiving weekend, to 73 cents a share from 75 cents for the quarter, to $1.20 a share from $1.23 for this year and to $1.40 a share from $1.60 for next year. Circuit City closed down $3.13, or 24.5%, to $9.63; CarMax was up 13 cents, or 3.2%, to $4.

McClatchy

(MNI) - Get Report

, a publisher of 24 newspapers, including

The Sacramento Bee

and the Twin Cities'

Star Tribune

, announced that results through October came in at $1.60 a share, beating the year-ago $1.48 a share. Advertising revenue rose 4.7% through the first 10 months, but the company said ad growth slowed in November.

If you looked closely, you saw this wasn't quite a third-quarter earnings release, because the company announced that on Oct. 17. Then again, it wasn't quite a fourth-quarter earnings release, since the company's fourth quarter hasn't closed yet. It was more of a heads-up, with McClatchy telling investors that it's still on track to report record earnings in 2000 and is comfortable with its $1.96 First Call/Thomson Financial earnings estimate.

McClatchy closed down 44 cents, or 1.1%, to $40.75.

When the going gets tough, sometimes the tough

don't

go shopping. At least not at

Nordstrom

(JWN) - Get Report

, anyway. The department store chain said that November

same-store sales fell 3% when adjusting for differences between specific days in 2000 and 1999.

Sales did rise 9.2% to $594.6 million from the year-ago $544.4 million, but that data included stores that were not opened last year. Plus it wasn't been adjusted for differences between specific days. When that figure is adjusted, sales rose by 6%. Nordstrom ended the day down 19 cents, or 1.1%, to $16.75.

After Tuesday's Close

Advanced Fibre Communications

( AFCI) said it will meet or exceed its earnings projection of 16 cents a share for the fourth quarter.

The Petaluma, Calif., company, which makes broadband access products, also reiterated its revenue forecast for the fourth quarter of $115 million to $118 million. Analysts polled by First Call/Thomson Financial expect fourth-quarter revenue of $117.5 million. The stock closed up $4.27, or 21.3%, to $24.27.

Comverse Technology

( CMVT) reported third-quarter earnings that beat analysts' expectations by 2 cents, citing continued strong demand from wireless network operators.

The computer and telecommunications systems and software maker said third-quarter earnings rose to $68.4 million, or 38 cents a diluted share, excluding charges for the acquisition of

Exalink

and

Gaya Software

. The company recorded net income of $45 million, or 28 cents a diluted share, for the year-ago period. The 15-analyst estimate expected earnings of 36 cents a share for the quarter. Comverse closed down $3.50, or 3.5%, to $95.50.

R.H. Donnelley

( RHD) said that it expects its 2000 EPS to fall slightly below its previously announced target of $1.85. The figure includes a one-time charge of $3 million related to closing its Get Digital Smart unit. Without the charge, the company said earnings would be modestly above the target. The

I/B/E/S

two-analyst estimate for the year is $1.88. R.H. Donnelley ended the day down $1.69, or 7.2%, to $21.69.

Endwave

( ENWV) warned investors after the close Tuesday that it expects fourth-quarter estimates to come in lower than expected due to slowing demand.

The maker of high-speed radio frequency products for wireless systems, which begin trading publicly on Oct. 17, said it expects to report a pro-forma net loss of 28 cents a share. The four-analyst estimate forecast a loss of 25 cents a share for the quarter. The company, based in Sunnyvale, Calif., also expects revenue to come in at $13 million for the quarter and $65 million in 2001. Endwave closed down $7.50, or a whopping 68.97%, to $3.38.

Integrated Silicon Solution

(ISSI)

, a maker of memory chips, increased its revenue guidance for its first fiscal quarter, ending Dec. 31.

The company now expects quarterly revenue of $63 million to $65 million, up from previous guidance of $60 million to $62 million. The company reported revenue of $50.1 million for the fourth quarter. Integrated Silicon expects sequential revenue to grow in the 26%-to-30% range.

Analysts expect the company to earn 41 cents a share for the first quarter, according to First Call/Thomson Financial. Wall Street is looking for revenue of $60 million for the period, but that estimate is based on only two analysts. The company's stock ended the trading day up $3.44, or 36.9%, to $12.75.

Landstar System

(LSTR) - Get Report

said it's expecting fourth-quarter earnings of $1.70 to $1.85 a share, but flat revenue. The First Call three-analyst estimate is currently $1.70. Landstar closed down $1.63, or 3%, to $52.50.

NCI Building Systems

(NCS) - Get Report

posted fourth-quarter earnings of $1 a share, beating the

I/B/E/S

four-analyst estimate of 97 cents and up from year-ago earnings of 89 cents a share. NCI closed down 6 cents, or 0.3%, to $18.56.

Visteon

(VC) - Get Report

, which makes automotive parts, warned of lower-than-expected earnings for its fourth quarter of about 35 cents. A 14-analyst estimate predicted earnings of 66 cents for the quarter. The company will be hurt by

Ford's

(F) - Get Report

reduced production levels. Visteon closed down $3.38, or 23.4%, to $11.06; Ford was down 88 cents, or 3.5%, to $23.88.

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Analyst Actions

Upgrades

Abgenix

( ABGX): UP to strong buy from accumulate at

Prudential Securities

. Abgenix closed down $1.25, or 2.2%, to $56.38.

Chase Manhattan

( CMB): UP to buy from hold at

ING Barings

. As noted above, Chase was down $1.25, or 3%, to $40.06.

Dynamic Details

( DDIC): UP at CSFB, 2001 EPS to $1.55 from $1.45. Dynamic Details closed down 25 cents, or 0.8%, to $32.50.

Electronic Data Systems

(EDS)

: UP at CSFB, 2001 EPS to $2.60 from 5 cents. EDS closed up 38 cents, or 0.6%, to $59.31.

Nokia

(NOK) - Get Report

: UP at CSFB, 2001 EPS to 95 cents from 91 cents. Nokia closed flat at $51.38.

Tosco

( TOS): UP to accumulate from hold at Prudential. Tosco ended the day up 38 cents, or 1.3%, to $29.38.

Valero Energy

( DTPI): UP to strong buy from accumulate at Prudential. Valero closed up $1.06, or 3.5%, to $31.25.

Downgrades

Diamond Technology

( DTPI): DOWN at Lehman, 2002 EPS to $1.60 from $1.72, price target to $50 from $95. Diamond Tech closed down $11.06, or 28%, to $28.44.

Heinz

(HNZ)

: DOWN to accumulate from buy at Merrill, 2001 EPS to $2.79 from $2.81. Heinz closed down $2.56, or 5.6%, to $43.13.

Marriott International

(MAR) - Get Report

: DOWN to market perform from buy at Deutsche Banc Alex. Brown. Marriott closed down 19 cents, or 0.4%, to $42.50.

PanAmSat

( UDS): 12-month price target DOWN to $51 from $82 at

Banc of America Securities

. PanAmSat closed down $2.44, or 6.1%, to $37.31.

Ultramar Diamond Shamrock

( VERT): DOWN to accumulate from strong buy at Prudential, 2000 EPS to $4.35 from $4.75, 2001 EPS to $3.80 from $4.15. UDS closed flat at $27.06.

VerticalNet

( VERT): DOWN to long-term accumulate from long-term buy at Merrill. VerticalNet closed down $2.31, or 21.1%, to $8.63.

Initiations

AirGate PCS

( SHRP): NEW buy at Lehman; price target: $83.

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Offerings and stock actions

The

Sharper Image

( GAP) announced a stock buyback program for 10%, or 800,000, of the company's outstanding shares in the next 12 months. Company officials said that the plan was an attractive investment for the company and that the move would add long-term value for shareholders. The stock closed flat at $14.13.

After Tuesday's Close

Great Atlantic & Pacific Tea's

( GAP) board voted to discontinue the payment of a quarterly dividend on its common stock.

The company, which operates A&P, Waldbaums, Food Emporium and Kohl's supermarkets, last declared a quarterly dividend of 10 cents on Oct. 4. Great Atlantic closed down $1.50, or 19.1%, to $6.38.

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Miscellany

Power company

DQE

(DQE)

put itself on the block today, announcing a companywide review of assets that could mean the end of the company, or at least the sale of some of its component businesses.

The company has hired

SG Barr Devlin

and the

Northbridge Group

to assist in a review. Lately, it has been trading near 52-week lows, and in September sold off some alternative-fuel facilities in an attempt to increase earnings by 5% to 8%. After today's announcement, DQE said that it will still see growth in line with estimates, coming in closer to the 5% end of the range. DQE closed up 19 cents, or 0.6%, to $32.81.

Things will be getting a little rough in

GSI Lumonics'

(GSLI)

Rugby plant in the England. The Canadian company announced that it was cutting 80 jobs due to a delay in developing a high-powered laser system for the automotive market.

The job cut is designed to offset laser production costs. GSI said 2001 revenues will be cut by less than 5%, and that the restructuring should increase profits.

In a press release, Chief Executive Charles Winston said, "While this action is unfortunate, it is taken to preserve the operating performance of the company for both the near and long term." GSI closed down 25 cents, or 2.3%, to $10.75.

King Pharmaceuticals

( KG) announced that three of the company's top officials, the brothers Gregory -- Chief Executive and Chairman John Gregory, Secretary and Vice President Joseph Gregory and President Jefferson Gregory -- have established blind trusts, which prevent the flow of insider information and are managed by a third party.

John Gregory has created two trusts, one with 3 million shares and a second, called S.J. LLC, with 1.5 million shares. The trusts allow a third-party trustee to sell 250,000 shares each quarter in the larger trust, and 125,000 shares per quarter in the smaller trust. The other executives have similar arraignments, with the trust limited in the number of shares it can sell.

The company said these trusts will allow the executives to make new investments while avoiding conflicts of interest. King closed off 63 cents, or 1.3%, to $49.

Welcome back, Kolber!

Value City Department Stores

(VCD)

, known for its

Filene's Basement

chain up in the Northeast, announced that George Kolber will become its new chief executive. Kolber, whose last job was as

American Eagle Outfitters'

( AEOS) CEO, was with Value City in 1991 when the company debuted on the Big Board. Value City neither revealed what post Kolber previously held, simply naming him an "officer," nor the identity of whom he replaced. Value City closed down 38 cents, or 5.3%, to $6.75; American Eagle was down 44 cents, or 1.1%, to $39.69.

After Tuesday's Close

Standard & Poor's

is shaking things up in its indices. It will add

QLogic

(QLGC)

,

Vitesse Semiconductor

(VTSS)

and

Stryker

(SYK) - Get Report

to the

S&P 500 index after the close of trading Dec. 11. Qlogic closed up $1.69, or 1.6%, to $108.06; Vitesse was up $2.88, or 5.1%, to $59.13; Stryker was up $2.07, or 3.99%, to $54.

Polaroid

( PRD),

Springs Industries

(SMI)

and

Russell

( RML) will be removed from the index. Polaroid closed down 69 cents, or 9.2%, to $6.75; Springs Industries was down $2.25, or 7.96%, to $26; Russell was down $1.19, or 6.96%, to $15.88.

In the

S&P MidCap 400

index,

S&P SmallCap 600

components

Barr Laboratories

( BRL),

Dallas Semiconductor

(DS) - Get Report

and

Plexus

(PLXS) - Get Report

will replace QLogic, Vitesse and Stryker. Barr Labs closed up $4.19, or 6.6%, to $67.63; Dallas Semis was up 31 cents, or 1%, to $31.19; Plexus was up $1.25, or 2.6%, to $50.13.

Polaroid, Springs Industries and Russell will move to the S&P SmallCap 600. After the closing bell yesterday, the S&P announced four other

moves on the S&P 500.

Robert Nardelli, another executive who was passed over for

General Electric's

(GE) - Get Report

top post, will leave the company to become chief executive of home improvement retailer

Home Depot

(HD) - Get Report

.

Nardelli served as president and chief executive of GE's Power Systems unit since 1995. He starts the new job immediately. Earlier today, another blue-chip,

3M

(MMM) - Get Report

, announced that it had snagged GE exec James McNerney Jr. as its next chairman and CEO. For more, check out

TheStreet.com's

earlier story. Home Depot closed up $1.44, or 3.3%, to $45.06; GE was down 19 cents, or 0.4%, to $53.94; and 3M was down $1.50, or 1.3%, to $115.13.

Oil company

Unocal

( UCL) said its board had elected Charles Williamson as CEO, effective Jan. 1. He is currently executive vice president of international operations and succeeds Roger Breach, who will retire as chairman and CEO at the end of December.

Timothy Ling was named president and COO, while John Creighton Jr., an outside director, was elected non-executive chairman of the board. Unocal closed down 75 cents, or 2.1%, to $34.63.

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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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