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Gillette Issues Second-Quarter Warning; Adobe Beats Estimates

Gillette

(G) - Get Genpact Limited Report

said it expects to report about a 20% decrease in second-quarter earnings compared with a year ago. The 14-analyst

First Call

estimate called for quarter earnings of 29 cents a share vs. the year-ago 33 cents. The internationally exposed Gillette, which said it sees quarter sales increasing by a low-single-digit percentage, blamed the warning on disappointing sales of its

Braun

, stationery and toiletries products.

Elsewhere in earnings,

Adobe Systems

(ADBE) - Get Adobe Inc. Report

posted second-quarter earnings of 70 cents a share, beating the 11-analyst outlook by a nickel and moving ahead of the year-ago 41 cents. Shares of the company hopped up 2 1/8 to 76 in after-hours trading.

Inflow into U.S. equity funds for the week ended yesterday totaled $2.6 billion, with 58% going into growth funds, according to

AMG Data Services

. International equity funds reported inflow of $495 million. Among other categories, taxable bond funds posted outflow of $443 million, municipal bond funds posted outflow of $247 million and money market funds posted outflow of $10.95 billion.

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

Earnings/revenue reports and previews

Cotelligent

(CGZ)

said it sees a first-quarter loss of $13 million to $15 million, including a restructuring charge and a pretax goodwill writedown. The company, which did not provide per-share estimates, said it's experiencing a downturn in demand for its services which it believes is related to decreased investment in information technology infrastructures while companies analyze their Y2K compliance status.

J.M. Smucker

(SJM.A)

posted fourth-quarter earnings of 34 cents a share, in line with the two-analyst view and above the year-ago 33 cents.

MSC Industrial Direct

(MSM) - Get MSC Industrial Direct Co., Inc. Class A Report

said it expects to record third-quarter earnings around 18 cents a share, which would be below the 10-analyst forecast of 25 cents. The company, which earned 21 cents in the year-earlier period, cited a declining growth rate in May.

Nova

(NIS)

said its full-year 2000 earnings will come in around $1.48 to $1.52 a share, which would be below the seven-analyst estimate of $1.72. Meanwhile, the company said its fiscal 1999 earnings will be in line with analysts' expectations for $1.13 a share. Nova blamed higher costs for operating expenses, taxes and service delivery for the warning. The company also announced the repurchase of up to $250 million in stock.

Sunrise Medical

(SMD)

said it expects to post a break-even fourth-quarter due to changes in Medicare. The five-analyst estimate called for earnings of 12 cents vs. the year-ago loss of 5 cents. The company said it will cut 600 jobs instead of the previously planned 375.

Valley Media

(VMIX)

said it sees a first-quarter loss of 8 cents to 10 cents a share due to higher than expected warehouse moving expenses. The two-analyst estimate called for earnings of 2 cents vs. the year-ago loss of 25 cents.

Wet Seal

(WTSLA)

said it sees second-quarter earnings coming in around the year-ago 35 cents if comparable-store sales don't improve. The four-analyst prediction called for 44 cents.

Woodhead Industries

(WDHD)

said it sees third-quarter earnings coming in around 18 cents to 21 cents a share. The four-analyst estimate called for 28 cents vs. the year-ago 25 cents. Woodhead said sales for the industrial communications and connectivity segments of its business haven't met expectations.

Mergers, acquisitions and joint ventures

PacifiCorp

TheStreet Recommends

(PPW)

shareholders approved a merger with

ScottishPower

. PacifiCorp shareholders will receive 0.58 of an American Depositary Share, or 2.32 ordinary shares, of ScottishPower.

Walden Residential Properties

(WDN)

said it received several indications of interest to buy the company. While Chief Executive Marshall Edwards said Walden is not actively seeking a buyer, the company retained

J.P. Morgan

to assess the offers.

Offerings and stock actions

Goldman Sachs

priced

Viant's

(VIAN:Nasdaq) 3 million-share IPO top-range at $16 a share. The price range for the Internet services company's offering was raised to $14 to $16 from $10 to $12.

Cutter & Buck

(CBUK)

announced a 1.7 million-share stock offering.

As

Gilda Radner

so beautifully put it:

Never mind

.

National Discount Brokers

(NDB)

said that, in view of current market conditions, it will go ahead with its planned 2.6 million-share stock offering. Two days ago, the firm canceled the offering -- due to (then-)current market conditions, of course.

Meanwhile,

NAC Re

(NRC) - Get National Research Corporation Report

said it rescinded a 6 million-share stock repurchase program to comply with a previously reported merger agreement with

XL Capital

(XL) - Get XL FLEET CORP. Report

.

And

New York Times

(NYT) - Get New York Times Company Class A Report

said it would buy back $500 million in stock.

Miscellany

priceline.com

(PCLN)

hired Daniel Schulman, president of

AT&T's

(T) - Get AT&T Inc. Report

consumer long-distance and segment marketing business, as its new president.