named Michael Capellas its president and CEO, replacing at last the ousted Eckhard Pfeiffer, who was booted in April. Capellas comes to the position from elsewhere in the building, leaving his current job of chief operating officer. "In the Internet age ... there is no room for a CEO with a learning curve," Chairman Ben Rosen said in a
interview. Capellas said he would have a product rationalization and restructuring plan ready by Aug. 15 and intends to boost Compaq's direct PC sales to 25% by year-end from the current 15%, and then eventually to 40%.
posted second-quarter earnings of 56 cents a share, a penny above the 23-analyst
view and ahead of the year-ago 38 cents. The PC maker said its Internet service provider unit, Gateway.net, doubled its number of subscribers during the quarter. The company also said it's comfortable with earnings estimates of 67 cents a share for the third quarter. Gateway, which has been rumored to be in acquisition talks with ISP
, said it's not in talks with any specific ISP right now.
Inflow into U.S. equity funds for the week ended yesterday totaled $92 million, according to
AMG Data Services
. Small-cap growth and international equity sectors reported outflow of $483 million and $425 million, respectively. Among other categories, taxable bond funds posted inflow of $814 million, money market funds posted inflow of $3.3 billion and municipal bond funds posted outflow of $63 million.
In other postclose news (earnings estimates from First Call; earnings reported on a diluted basis unless otherwise specified):
Earnings/revenue reports and previews
American Power Conversion
reported second-quarter earnings of 22 cents a share, 1 cent better than the three-analyst view and up from the year-ago 18 cents. The company said it plans to close its Fort Myers, Fla., plant, which has 200 employees.
reported a second-quarter loss of 10 cents a share, 4 cents better than the three-analyst estimate but wider than the year-ago loss of 6 cents. The company said it expects sequential revenue growth to slow in the third quarter and cease in the fourth quarter, citing year 2000 transitions.
reported second-quarter earnings of 40 cents a share, in line with the seven-analyst outlook and up from the year-ago 36 cents. The company said it expects to meet estimates for 1999; the current estimate calls for earnings of $1.70 vs. 1998's $1.50.
reported a second-quarter loss of 60 cents a share including charges, apparently topping the four-analyst estimate of a 71-cent loss and the year-ago loss of $4.95. The company said it plans to cut 500 jobs from its workforce of about 1,550, incurring a third-quarter restructuring charge.
CFO Greg Maffei told financial analysts at an annual meeting that the company's research and development expenses would rise to about $3.8 billion in fiscal 2000 from $3.1 billion in 1999,
reported third-quarter earnings of 66 cents a share, 7 cents ahead of the two-analyst view and up from the year-ago 30 cents. The company's same-store sales rose 14.3%.
reported second-quarter earnings of 33 cents a share, a penny ahead of the six-analyst estimate and up from the year-ago 27 cents. The company also set a 3-for-2 stock split.
reported second-quarter earnings of 16 cents a share, in line with the seven-analyst forecast but down from the year-ago 18 cents. The company said its same-store sales fell 11%.
reported a second-quarter loss of 16 cents a share, 3 cents better than the three-analyst estimate and narrower than the pro forma year-ago loss of 18 cents. The company also set a 2-for-1 stock split.
reported second-quarter earnings of 28 cents a share, 5 cents below the three-analyst forecast and behind the year-ago 41 cents. The company also warned it sees 1999 earnings coming in around 85 cents to 95 cents a share due to a weak agricultural market and soft sales in Europe. The three-analyst view calls for 1999 earnings of 95 cents vs. 1998's $1.06.
said it expects to post second-quarter earnings slightly above estimates thanks to strong loan originations and lower deposit costs. The 11-analyst prediction calls for earnings of 29 cents a share vs. the year-ago 27 cents.
reported third-quarter earnings of 13 cents a share, in line with the lowered 19-analyst expectation and up from the year-ago 11 cents. The company said same-store sales rose 6%. Starbucks plans to open 600 stores worldwide in fiscal 2000, including 350 company-owned stores and 100 licensed stores in North America. The company is targeting a 25% earnings-per-share growth rate in fiscal 2000.
In other earnings news:
Mergers, acquisitions and joint ventures
agreed to acquire
for $227 million in cash and stock. ReliaStar, an insurer, will also assume $31 million of asset manager's Pilgrim's debt.
said its acquisition of
received approval from the
Federal Trade Commission
Offerings and stock actions
(INSW:Nasdaq) 5 million-share IPO top-range at $17. The company provides customized insurance quotes over the Internet. Its price range was raised to $16 to $17 from $11 to $13.
Elsewhere in new issues,
(BMRN:Nasdaq) 4.5 million-share IPO top-range at $13. The company develops carbohydrate enzyme therapies for debilitating, life-threatening, chronic genetic disorders and other diseases.
Credit Suisse First Boston
(TANN:Nasdaq) 4 million-share IPO above-range at $15. The company is a technology services provider. Its expected price range was raised to $12 to $14 from $9 to $11.
, a subsidiary of
, filed an antitrust suit against
International Game Technology
, alleging that IGT's contract with Atlantic City casinos has shut Bally out of a lucrative segment of the gaming world.
, an assisted-living services provider, said it will consider going private through a leveraged recapitalization. Abraham D. Gosman, chairman and CEO, said the company will identify an investment banker in the week ahead.
reached a tentative pact with the
United Steelworkers of America
. Terms weren't disclosed.
An advisory panel of the
Food and Drug Administration
eye laser for farsightedness.
wrote about the company earlier this week.
said its CEO and vice chairman, Louis DiPasqua, will retire Sept. 30.
said it entered a $240 million agreement to recapitalize the company.