3Com Meets Earnings Numbers but Slips on Revenue Forecast

Author:
Publish date:

3Com

(COMS)

posted fourth-quarter earnings of 24 cents a share, 1 cent higher than the 25-analyst

First Call

view and ahead of the year-ago 18 cents. The company also approved a 15 million-share repurchase plan. But the networker's CFO said 3Com's revenue for the first and third quarter of 2000 is expected to come in below year-ago figures. Shares of 3Com slipped 1/8 to 31 3/8 in after-hours trading.

Network Appliance

(NTAP) - Get Report

will replace

Ascend Communications

(ASND) - Get Report

in the

S&P 500

after Thursday's close. Lucent is acquiring Ascend.

Among other changes to S&P indices:

  • Best Buy (BBY) - Get Report, an S&P MidCap 400 component, will replace AirTouch Communications (ATI) - Get Report in the S&P 500 after Monday's close. Vodafone (VOD) - Get Report is acquiring Airtouch, and received approval from the Federal Communications Commission for the planned $62 billion acquisition. Swift Transportation (SWFT) will replace Best Buy in the mid-cap index.
  • Vulcan Materials (VMC) - Get Report will replace Provident (PVT) - Get Report in the S&P 500 after the close June 29. Transaction Systems Architects (TSAI) will replace Vulcan Materials in the mid-cap index. UNUM (UNM) - Get Report is acquiring Provident.
  • Unitrin (UNIT) - Get Report will replace Unisource Worldwide (UWW) in the mid-cap index after Friday's close. Georgia Pacific (GP) is acquiring Unisource.
  • DST Systems (DST) will replace Aliant Communications (ALNT) in the mid-cap index on a date to be announced. Alltel (AT) - Get Report is acquiring Aliant.

CMGI

(CMGI)

may buy

Compaq's

(CPQ)

Internet assets, including

AltaVista

,

CNBC

reported.

In other postclose news (earnings estimates from First Call; earnings reported on a diluted basis unless otherwise specified):

Earnings/revenue reports and previews

FSI

(FSII)

recorded a third-quarter loss of 17 cents a share, narrower than the four-analyst outlook for a loss of 18 cents but wider than the year-ago loss of 9 cents.

Georgia-Pacific said -- thanks to the sustained pace of home construction and remodeling and improvements in its lumber business -- it expects to post second-quarter earnings of more than $1 a share. The 13-analyst outlook called for 89 cents vs. the year-ago 17 cents. Shares of the company were up 2 5/8 to 53 1/2 in after-hours trading.

H.B. Fuller

(FULL)

reported second-quarter earnings of $1.04 a share, beating both the five-analyst forecast for 97 cents and the year-ago 81 cents.

Lennar

(LEN) - Get Report

posted second-quarter earnings of 63 cents a share, 1 cent above the 10-analyst estimate and ahead of the year-ago 47 cents.

Vastar Resources

(VRI)

said it will take a $10 million charge in the second quarter to reflect dry hole costs.

Mergers, acquisitions and joint ventures

Alltel agreed to acquire

Liberty Cellular

for $600 million in stock.

Kroger

(KR) - Get Report

announced plans to buy 41 grocery stores from

Albertson's

(ABS)

for an undisclosed amount. Albertson's is selling the stores as part of its pending merger with

American Stores

(ASC) - Get Report

Newbridge Networks

(NN)

agreed to acquire

Stanford Telecommunications

(STII)

for $280 million in stock.

Offerings and stock actions

Morgan Stanley Dean Witter

priced

Ariba's

(ARBA:Nasadq) 5 million-share IPO above range at $23. Ariba's software is used to automate purchasing of operating resources such as office supplies and computer products.

BancBoston Robertson Stephens

priced

GlobeSpan's

(GSPN:Nasdaq) 3.25 million-share IPO top-range at $15. The company is a developer of advanced digital subscriber line integrated circuits.

Interliant

(INIT:Nasdaq) resumed plans for an IPO, which it expects to hit the Street around July 5.

Montana Power

(MTP) - Get Report

set a 2-for-1 stock split.

TD Waterhouse's

(TWE:NYSE) 42-million share IPO priced top-range at $24. The initial offering for the company, the discount brokerage unit of

Toronto-Dominion

(TD) - Get Report

, originally was set for 32 million shares.

Miscellany

New York Federal Reserve

President

William McDonough

told the Money Marketeers of New York University that tightening monetary policy to prevent inflation can help U.S. growth as much as cutting rates has in the past. The central bank has to remain "vigilant," he told the group of Wall Street economists who gave McDonogh their Distinguished Achievement Award. The New York Fed president is a voting member of the Fed's rate-setting board, which meets June 29-30.

American Home Products

(AHP)

settled a wrongful death suit brought against it by the family of a Houston woman who died after using the "fen-phen" combination of diet drugs. Financial terms of the agreement weren't released.

BF Goodrich's

(GR)

Aerostructure unit reached a new labor agreement with groups representing more than 1,500 California workers.

Iridium

(IRID)

said it ended its contract to buy

Claircom Communications

from

AT&T

(T) - Get Report

and

Rogers Cantel

.

International Specialty Products

(ISP)

named Sunil Kumar president and chief executive. Kumar replaces President and COO Peter R. Heinze.