Borders Warns of Fourth-Quarter Shortfall

Adaptec previews strong earnings, and Fed Chairman Alan Greenspan gets ready to testify.
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Borders Group

(BGP)

said it expects to report 1998 earnings of $1.14 to $1.18 a share because of a fourth-quarter shortfall in sales. The company cited major storms in key markets and an increase in gift certificates. The 12-analyst

First Call

consensus called for an annual profit of $1.22 and quarter earnings of $1.14. (

TheStreet.com's

James Cramer

commented on the Borders news in a

column today.)

Federal Reserve

Chairman

Alan Greenspan

will speak on the economy before the

House Ways and Means Committee

at 10 a.m. EST Jan. 20, which is two weeks from today.

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

Earnings/revenue reports and previews

Adaptec

(ADPT) - Get Report

said it expects to beat third-quarter earnings estimates with a profit around 20 cents a share. The seven-analyst forecast called for 14 cents vs. the year-ago 38 cents. The company credited demand for its core host bus adapter and software, strong shipments of its 64-bit RAID product and successful cost cutting programs.

Ambac Financial

(ABK)

said it will take a fourth-quarter charge of 14 cents a share after it stops developing electronic commerce applications for the municipal marketplace.

Brightpoint

(CELL)

sees fourth-quarter earnings of 22 cents to 24 cents a share before charges. The 13-analyst view calls for 24 cents vs. the year-ago 18 cents.

First Health Group

(FHCC)

warned that losing a bid to provide service for a significant potential client will slash its 1999 earnings estimate by 13 cents a share. The nine-analyst outlook called for annual earnings of $1.56.

Guitar Center

(GTRC)

reported fourth-quarter sales of $119 million and quarter same-store sales up 10.8%.

Oakley

(OO)

said it sees fourth-quarter earnings coming in flat with the year-ago 5 cents a share because its footwear sales failed to meet expectations. The two-analyst view called for 9 cents this quarter.

99 Cents Only

(NDN)

said its fourth-quarter same-store sales climbed 5.3%.

Stride Rite

(SRR)

posted a fourth-quarter loss of 5 cents a share, 1 cent wider than the eight-analyst forecast and below the year-ago profit of a penny.

Offerings and stock actions

Cox Communications

(COX)

sold its 11.9% stake in

TeleWest Communications

(TWSTY)

for $740 million to

Dresdner Kleinwort Benson

, a U.K.-based investment bank.

Miscellany

Three-Five Systems

(TFS)

said that its CEO, Vincent Hren, resigned to accept a position at another Phoenix-based company but that it expects to meet or beat 1998 earnings estimates. The two-analyst prediction calls for 26 cents a share vs. 1997's 65 cents.

Weyerhaeuser

(WY) - Get Report

said it plans to close its Longview, Wash., chlor-alkali plant in the first quarter and lay off about 100 employees. The company will take a $45 million charge in the fourth quarter for the closing.