Intel May Meet Highest Estimates

Pegasus Communications drops; Talbot's rises after upside sales surprise; plus more of today's stocks in the news

After the market close on Thursday, chipmaker Intel (INTC ) says it may meet its highest estimates this quarter as demand rises for flash memory products. Intel says second-quarter revenue will rise to $8 billion to $8.2 billion.

Shares of Pegasus Communications (PGTV ) fell sharply after the company said its subsidiaries Pegasus Satellite Television, Pegasus Satellite Communications, and Pegasus Media & Communications filed for Chapter 11 after News Corp's (NWS ) DirectTV unexpectedly terminated a distribution deal.

Talbots (TLB ) posted better-than-expected 8.1% higher May same-store sales and 10% higher total sales. First Albany upgraded the stock to strong buy from buy. Shares were higher.

BioMarin Pharmaceutical (BMRN ) announced positive results from its Phase 3 clinical trial of Aryplase, an investigational enzyme replacement therapy for treatment of mucopolysaccharidosis VI (MPS VI). Shares were higher.

CV Therapeutics (CVTX ) and the FDA reached a written pact on protocol for a clinical trial of Ranexa which, if successful, would support approval of the drug for treatment of chronic angina in a restricted patient population. First Albany raised its rating to buy. Shares were higher.

Pier 1 Imports (PIR ) posted 7.6% lower May same-store sales and 1.2% higher total sales. The company notes its guidance was for a 4% to 6% same-store sales drop. It sees a 7% to 9% June same-store sales drop. Pier 1 cut its first quarter earnings per share forecast from a range of 14 cents to 17 cents to a range of 12 cents to 14 cents. Shares were down.

Network Associates (NET ) reportedly sees earnings per share of 47 cents in 2004, and 98 cents in 2005, vs. its previous estimates of 45 cents and 83 cents, respectively. Shares were higher.

Continental Airlines (CAL ) shares were lower after CS First Boston cut its estimates and price target primarily due to higher fuel prices, which were indicated in an 8-K filing.

Wal-Mart Stores (WMT ) posted 5.9% higher May total sales. The No. 1 retailer says that for the 5-week June sales period, it continues to forecast comparable-store sales for the U.S. to be up in the 4% to 6% range. Shares were higher.

Comverse Technology (CMVT ) posted first quarter earnings per share (GAAP) of 3 cents vs. a loss of 3 cents per share on a 23% sales rise. Comverse reportedly raised its fiscal 2005 earnings per share guidance to 22 cents, vs. its previous guidance of 16 cents. Punk, Ziegel & Co., and Schwab SoundView raise estimates on the company. Shares were higher.

Seagate Technology (STX ) plans to take a $50 million fourth quarter charge as part of its cost-cutting strategy. In addition, it reportedly plans to cut 2,900 jobs, or about 7% of its workforce. Morgan Stanley cuts estimates, while S&P keeps its avoid opinion. Shares were up.

Piper Jaffray upgraded its investment recommendation on Learning Tree (LTRE ) to outperform from market perform. Shares were up solidly.

Best Buy (BBY ) posted 8.3% higher May same-store sales and 17% higher first quarter sales. The electronics retailer expects first quarter earnings per share from continuing operations at the midpoint of its range of 30 cents to 35 cents. S&P reiterated its buy opinion. Shares were down.

Target (TGT ) posted 4.6% higher May same-store sales and 11% higher total sales. Shares were up.

Hovnanian Enterprises (HOV ) posted $1.06, vs. 80 cent second quarter earnings per share on 35% higher total sales. Hovnanian sees a double-digit percentage increase in fiscal 2005 earnings. Shares were lower.

Viacom (VIA.B ) announced the resignation of Jonathan Dolgen, chairman of Viacom Entertainment Group, effective July 15. Shares were higher.

Costco Wholesale (COST ) posted 16% higher May same-store sales and a 19% total sales rise. Shares were higher.

Aeropostale (ARO ) posted a 27% May same-store sales rise and a 57% total sales increase. S&P reiterated its accumulate opinion. Shares were solidly higher.

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