Tech Spending Slowdown Hits CNET
First Union downgraded Art Technology (ARTG ) to market perform from buy.
Cree (CREE ) expects $45M-$48M Q4 revenue and $0.14-$0.16 EPS. S&P, Banc of America and Prudential cut estimates. The shares were trading sharply lower.
Banc of America says concerns about Express Scripts 's (ESRX ) capital software development costs are unjustified, and views the weak stock price as a buying opportunity.
Due to tech-sector spending slowdown, CNET Networks (CNET ) sees lower than expected $75-$80M Q1 revenues and $5M-$12M Q1 EBITDA. Friedman Billings cites uncertainty in the online advertising market.
Korn Ferry (KFY ) says it is comfortable with $0.81 fiscal 2001 (Apr.) consensus and sees $1.40 fiscal 2002. The firm posted $0.18 vs. $0.23 Q3 EPS as higher costs offset a 28% revenue rise.
Salomon Smith Barney downgraded Brocade (BRCD ) to outperform from buy, as well as EMC (EMC ) and InRange Tech (INRG ) (See Word on the Street ).
Genentech (DNA ) and Novartis (NVTS ) say FDA advised them that it won't convene a scheduled Pulmonary-Allergy Drugs Advisory Committee meeting on April 26 at which time it was going to review BLA for Xolair (See Stock Picks & Pans ).
Waste Management (WMI ) posted $0.29 Q4 EPS (pro forma). S&P maintains accumulate (See Stock Picks & Pans ).
Prudential cut its estimates and price target on Exar Corp. (EXAR )
Merrill says Sun Microsystems's (SUNW ) largest resellers are carrying excess inventory. (See Word on the Street ).
Chris & Banks (CHBS ) posted 23% higher February same store sales and 93% higher total sales.
Salomon Smith Barney downgraded Webmethods (WEBM ) to neutral from outperform.
Michaels Stores (MIKE ) posted $1.52 vs. $1.41 Q4 EPS from operations on 4% higher same store sales (after giving effect to accounting change). The company also posted slightly higher February same store sales. S&P downgraded.
Best Buy (BBY ) expects to meet or exceed $0.81 Q4 consensus estimate. The consumer-electronics chain posted 1.8% higher Q4 same store sales and 23% higher total sales.
Shares of Yahoo! (YHOO ) are sharply lower after trading was halted yesterday. The company sees breakeven results in Q1 on revenues of $170M-$180M. The online media company has initiated a search for a new CEO to replace Timothy Koogle, and has set a $500M share buyback plan. SG Cowen downgraded to sell; Merrill Lynch also downgraded. S&P and Prudential maintain their hold recommendations. (See Word on the Street and Stock Picks & Pans ).
Tellabs (TLAB ) sees $0.35-$0.38 Q1 EPS on sales of $830M-$865M, and EPS of $2.13-$2.17 for all of 2001. The company cites below-trend growth in its CABLESPAN business, and its inability to recognize revenue from shipments of its new TITAN 6500 system in Q1. (See Word on the Street and Stock Picks & Pans ).
The FDA issued a warning following inspection of Eli Lilly's (LLY ) injectable product facility in Indianapolis that identified deficiencies in areas such as quality control and validation practices.
Tibco Software (TIBX ) sees lower than expected $80M-$84M Q1 revenue. The company cites the slowing U.S. economy and delayed IT spending.
Alpha Industries (AHAA ) sees $0.05 Q4 EPS on sales of about $54M. Alpha cites the economic downturn and continued softness in the wireless handset and infrastructure markets.
Alliance Fiber (AFOP ) sees breakeven-$0.01 Q1 EPS on revenue of $7M-$7.5M and $0.03-$0.05 2001 EPS on $40M in revenue. Alliance cites a slowdown in shipments due to lower level of new orders.
MKS Instruments (MKSI ) sees $100M-$109M Q1 revenues, 15%-20% less than previously estimated. MKS cites a slowdown in demand from OEM customers. The company plans to reduce its workforce.
American Eagle (AEOS ) posted 4.5% lower Feb. same store sales, 20% higher total sales (results from US operations).
Krispy Kreme (KREM ) posted $0.30 vs. $0.11 Q4 EPS on a 15% rise in same store sales. The company sees $0.34 Q1 EPS and $1.38 for all of fiscal 2002.
Costco Wholesale (COST ) posted $0.38 vs. $0.39 Q2 EPS as higher expenses offset a 2% same store sales rise. Costco posted 5% higher Mar. same store sales and 11% higher total sales.
Goody's Family (GDYS ) posted 14% lower Feb. same store sales and flat total sales. Goody's says a poor retail environment resulted in lower than plan same store sales.
Aegon (AEG ) will acquire J.C. Penney's (JCP ) Direct Marketing Services operations for $1.3B cash.
Universal Access (UAXS ) reaffirmed it $25M Q1 revenue and $155M-$160M 2001 guidance, and its forecast of EBITDA profitability by Q2 of 2002.
Intimate Brands (IBI ) posted a 5% Feb. same store sales decline and a 2% total sales decline.