Best Buy Slides amid Weak Sales Outlook

Citigroup finishes higher on Brazil bailout deal; Schering-Plough to appeal patent ruling; plus more stocks in the news

Schering-Plough (SGP ) disagreed with and will appeal a U.S. District Court ruling which found certain claims of patent protecting against generic versions of Claritin, expiring in 2004, are not valid.

Salomon SB downgraded Cross Country (CCRN ) to outperform. CIBC World reiterates strong buy on price. Janney Montgomery initiated with buy.

Hispanic Broadcasting (HSP ) is seen lower in sympathy with Univision, which posted Q2 results and provided disappointing guidance. Hispanic Broadcasting is in a pact to be acquired by Univision.

Cobalt (CBZ ) says due to unfavorable market conditions, it withdrew its registration statement for a proposed stock offering.

Best Buy (BBY ) cut its $0.30-$0.32 Q2 EPS guidance to $0.17-$0.21, citing a decline in consumer confidence resulting in flat same store sales in the past four weeks. S&P and Salomon downgraded.

CIBC World believes Cablevision has decided to drop Safeguard Scientifics as its digital set-top vendor, and has likely chosen Scientific Atlanta (SFA ). CIBC reiterates its buy rating.

Mid-Atlantic Medical (MME ) posted $0.44 vs. $0.30 Q2 EPS on 28% higher revenues. UBS Warburg raised estimates. S&P reiterates accumulate.

Shaw Group (SGR ) says its Stone & Webster unit was notified by a Mirant unit that Mirant is suspending construction on Mint Farm. Shaw cut its $2.90-$3.18 fiscal 2003 EPS guidance to $2.72-$3.00. S&P reiterates hold.

Citigroup (C ) and JP Morgan Chase (JPM ) opened higher on news of the IMF's $30 billion bailout package for Brazil as these banks have high exposure to this nation. Citigroup also agreed to expense stock options.

Hollywood Casino (HWD ) agreed to be acquired by Penn National Gaming for a total consideration of about $780 million, or $12.75 cash per share.

Univision (UVN ) posted $0.09 vs. $0.12 Q2 EPS despite 36% higher revenue, and posted Q2 EBITDA of $86.8 million vs. $94 million. Univision also sees $0.05-$0.08 Q3 EPS on revenue of $263 million to $280 million; and cut the 2002 guidance to $0.29-$0.34 EPS on revenue of $1.102 billion to $1.136 billion.

American Eagle (AEOS ) posted 5.4% lower July consolidated same store sales, and 8.2% higher total sales. CIBC World cut its estimates and target.

Whole Foods (WFMI ) posted $0.36 vs. $0.29 Q3 EPS from continuing operations on a 21% sales rise, and sees $0.32-$0.36 Q4 EPS on 17%-22% sales growth. Whole Foods raised the fiscal 2002 EPS guidance to $1.36-$1.40 from $1.30-$1.36.

Intel (INTC ) reportedly is expected to announce Thursday in an SEC filing that it will not expense stock options.

Qwest Communications (Q ) posted a $0.13 Q2 adjusted normalized loss vs. $0.08 EPS on a 17% revenue drop, and sees $17.1 billion to $17.4 billion 2002 revenue, and $5.4 billion to $5.6 billion adjusted EBITDA, on a $0.46-$0.49 normalized loss. Qwest expects to be cash flow positive for 2002.

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