Career Education Plunges

Red Hat's revenue disappoints; Adobe posts higher profit; Solectron posts strong results; plus more of today's stocks to watch

Career Education (CECO ) shares plunged more than 16% after the company says it reviewed a copy of an amended class action complaint; it says the complaint is without merit. Piper Jaffray says allegations in the amendment have re-kindled investor concerns surrounding alleged falsification of student records. S&P downgraded the stock to hold.

Solectron (SLR ) posted third-quarter earnings per share of 1 cent (pro forma), vs. 10-cents loss a year ago, on a 29% sales rise. It sees 3 cents to 5 cents fourth-quarter EPS from continuing operations (excluding items) on sales of $3.05 billion to $3.2 billion. S&P reiterates hold.

Red Hat (RHAT ) reported first-quarter earnings per share of 5 cents, vs. 1 cent a year ago, on a 53% revenue rise. Schwab SoundView says top-line miss is masking strengthening fundamentals; it kept an outperform ranking. First Albany downgraded its ratign to neutral from buy.

Adobe Systems (ADBE ) posted second-quarter earnings per share of 44 cents (GAAP), vs. 27 cents a year ago, on a 28% revenue rise. The software maker sees third-quarter EPS of 31 cents to 36 cents on revenue of $360 million to $380 million. It expects to exceed previous full year targets.

American Healthways (AMHC ) posted third-quarter earnings per share of 22 cents, vs. 14 cents a year ago, on a 56% revenue rise. The company raised its 71 cents to 73 cents fiscal year 2004 EPS guidance to 74 cents to 75 cents.

Progress Software (PRGS ) posted second-quarter earnings per share of 21 cents, vs. 18 cents (GAAP), on 17% revenue rise. It sees $88 million to $90 million third-quarter revenue and 20 cents to 21 cents EPS (GAAP), and $360 million to $365 million fiscal year 2004 revenue and 77 cents to 80 cents EPS.

Leaders of Delta Air Lines (DAL ) pilots union signaled they're preparing a new concessions offer to try to jump-start wage-cut talks with Delta, after getting new information from the company detailing its financial peril, according to a report.

Bear Stearns downgraded Central Freight (CENF ) to peer perform from outperform. On Thursday, the company forecast 9 cents to 14 cents second-quarter loss (including an 11-cents tax benefit).

Chattem (CHTT ) reported second-quarter earnings per share of 52 cents, vs. 38 cents a year ago (excluding charges), on a 10% revenue rise. The company sees EPS of 41 cents to 43 cents in the third-quarter and $1.60 to $1.65 in fiscal year 2004. S&P raises estimates and target; reiterates buy.

Fremont General (FMT ) says California Insurance Commissioner John Garamendi reportedly filed a suit against the company on June 2, alleging improper use of net operating loss deductions belonging to one of its discontinued operating units.

Citigroup upgraded Orient Express (OEH ) to buy from hold.

Georgia Gulf (GGC ) raised its second-quarter earnings per share guidance to 85 cents to 90 cents. It cited greater-than-expected improvement in its aromatics business.

Guidant (GDT ) says the FDA will review the company's submission to expand user labeling, including indications, for its cardiac resynchronization therapy defibrillators on July 28, 2004.

Tweeter Home Entertainment (TWTR ) expects third-quarter comp-store sales to be down 3% to 5%, vs. previous expectation of up between 0% and 4%.

Tibco Software (TIBX ) reported second-quarter earnings per share of 5 cents, vs. breakeven a year ago, on a 32% revenue rise.

California Micro Devices (CAMD ) reaffirms first-quarter guidance of 7 cents to 9 cents EPS on revenue of $16.4 million to $16.7 million. However, the company says revenue from Computing and Digital Consumer markets are expected to be flat to up modestly from the fourth quarter on weaker-than-expected demand for computers.

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