Lucent's Woes Mount

Lucent (LU ) said it will take a one-time $1.2-$1.6 billion Q2 restructuring charge to streamline operations and reduce cost structure. The telecommunications equipment firm posted a $0.30 Q1 pro forma loss vs. $0.33 EPS from continuing operations on a 26% revenue decline.

Compaq Computer (CPQ ) posted $0.30 vs. $0.16 Q4 EPS from operations on a 10% revenue rise. The company sees 6%-8% 2001 revenue growth. JP Morgan upgraded Compaq to buy from long-term buy, while S&P maintained its hold rating.

SG Cowen upgraded Merck & Co. (MRK ) to strong buy. The drug maker reported $0.75 vs. $0.66 4Q EPS after the close of trading Tuesday.

Broadcom Corp. (BRCM ) posted $0.32 vs. $0.13 4Q pro forma EPS on a sharp revenue rise.

Millennium Pharmaceuticals (MLNM ) posted a $0.07 4Q loss (basic, including a one-time, non-cash charge to reflect an accounting change) vs. $0.01 EPS despite a 6.5% revenue rise. The drug developer sees $220 million-$240 million 2001 revenue, but forecasts a loss of $100 million-$125 million.

Bristol-Myers (BMY ) posted 4Q EPS of $0.59 vs. $0.52 on an 8% sales rise.

Dupont (DD ) posted $0.47 vs. $0.55 4Q EPS from operations on a 12% sales drop.

Qwest Communications (Q ) reported $0.16 vs. $0.11 4Q EPS on a 9.9% revenue rise.

Whirlpool (WHR ) posted $1.00 vs. $1.51 4Q EPS on 4% lower sales. The home-appliances manufacturer has a more favorable outlook for the second half of 2001.

Knight Ridder (KRI ) reported $1.09 vs. $1.03 4Q EPS from continuing operations on a 7.3% revenue rise.

Credit Suisse First Boston upgraded Hormel Foods (HRL ) to buy from hold.

CDW Computer (CDWC ) posted $0.46 vs. $0.33 Q4 EPS on a 36% sales rise. The company sees 8%-12% Q1 sales rise. CDW also set a five-million-share buyback. S&P maintained its hold rating, while RW Baird says results are better than expected.

Morgan Stanley Dean Witter upgraded Limited Inc. (LTD ) to strong buy from outperform. Bear Stearns thinks Limited's assets could be worth $30 per share.

Banc of America upgraded Gap Inc. (GPS ) to buy from market perform.

Norfolk Southern (NSC ) posted $0.11 vs. $0.08 Q4 EPS from operations on a slight revenue rise. S&P downgraded the shares to avoid from hold.

Goldman Sachs removed Network Appliance (NTAP ) from its recommended list, and now rates the network data storage company as market outperformer. Salomon Smith Barney downgraded the company to outperform from buy.

Deutsche Bank Alex Brown believes Tivo Inc. (TIVO ) will miss its Q4 estimate.

CIBC World downgraded American Superconductor (AMSC ) to hold from buy. On Tuesday the company posted a $0.20 3Q loss vs. $0.19 loss.

T. Rowe Price (TROW ) posted $0.43 vs. $0.55 Q4 EPS as higher operational costs offset a 2% revenue rise. S&P maintained its buy rating. The investment advisor group posted $0.20 Q3 loss vs. $0.19 loss.

McDonald's(MCD ) posted $0.34 vs. $0.35 Q4 EPS despite a 6% revenue rise. The fast-food giant notes a decline in consumer confidence of European beef supply, and sees a challenging Q1. S&P maintains its hold rating.

Robert Half . (RHI ) posted $0.26 vs. $0.21 Q4 EPS on a 24% revenue rise. Prudential reiterated its accumulate rating.

Lehman Brothers reiterated its strong buy rating of Sierra Wireless ( SWIR ).

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