Foundry Profits Cool Despite Revenue Rise

WorldCom posted $0.25 vs. $0.41 Q1 EPS on flat revenue, sees $1.25-$1.35 2001 cash EPS for the WorldCom group and $0.25-$0.30 2001 cash EPS for the MCI group. S&P downgrades to hold. Wit SoundView and Lehman cut estimates..

Foundry Networks (FDRY ) posted $0.04 vs. $0.15 Q1 EPS (pro forma) despite an 18% revenue rise. Merrill upgraded.

Mirant Corp. (MIR ) posted $0.51 vs. $0.27 Q1 EPS. Mirant raised its $1.55-$1.60 2001 EPS guidance to $1.90; expects to grow 25% in 2002. BoA reiterates strong buy, Merrill upgraded. (HOMS ) posted $0.04 Q1 EPS from operations vs. a $0.35 loss (pro forma) on sharply higher revenues. The firm sees $0.11 Q2 EPS and $0.53 2001 EPS (pro forma). Prudential raised its target price.

Applied Films (AFCO ) posted $0.22 vs. $0.18 Q3 cash EPS on sharp revenue rise and sees 0.12-$0.15 Q4 cash EPS. Earlier it was incorrectly reported that the company saw $0.12-$0.15 2002 EPS.

CS First Boston upgraded Norfolk Southern (NSC ) to buy from hold.

Williams Companies (WMB ) posted $0.78 vs. $0.31 Q1 EPS from operations on a 63% revenue rise. Williams raised its 2001 EPS guidance to $2.10-$2.20.

Goldman downgraded Royal Caribbean (RCL ) to market perform from market outperform.

XO Communications (XOXO ) posted a $77.1M Q1 EBITDA loss vs. a $63.1M EBITDA loss on a 10% revenue rise. The company says reduced capex plans and a $250M investment by Forstman Little will extend its funding well into the first half of 2003. XO also cancelled agreements related to XO buying European fiver networks from Level 3 Communications (LVLT ), and XO now will become a Level 3's broadband transport customer.

Qualcomm (QCOM ) posted $0.29 vs. $0.26 Q2 EPS (pro forma) on a 9.9% revenue rise. The company sees $0.21 Q3 EPS (pro forma) due to lower than expected shipments of MSM units and decreased royalties and license fees from Q2 levels. S&P maintains hold. Lehman cut estimates.

Electronic Data Systems (EDS ) posted $0.56 vs. $0.47 Q1 EPS from operations on a 17% revenue rise. S&P maintains hold.

Dow Chemical (DOW ) posted $0.26 vs. $0.57 Q1 EPS from operations as high oil and natural gas prices and supply/demand balances in certain sectors offset a slight sales rise. The company sees $0.35-$0.45 Q2 EPS.

Affymetrix Inc. (AFFX ) posted an $0.11 Q1 loss vs. $a 0.07 loss from operations despite a 36% total revenue rise. Robertson Stephens downgraded. S&P maintains hold.

Boston Scientific (BSX ) posted $0.21 vs. $0.26 Q1 EPS from operations on flat sales (excluding currency fluctuations).

PeopleSoft (PSFT ) posted $0.11 vs. $0.04 Q1 EPS from recurring operations on a 34% total revenue rise. Goldman added to recommended list. S&P maintains hold. CS First Boston upgraded to buy.

AXT Inc. (AXTI ) posted $0.22 vs. $0.10 Q1 EPS on 80% revenue rise. AXT expects Q2 EPS and revenue to be 2%-6% above Q1 levels.

Chiron Corp. (CHIR ) posted $0.23 vs. $0.21 Q1 EPS (actual) on 11% total revenue rise.

Varian Medical (VAR ) posted $0.45 vs. $0.32 Q2 EPS on 14% sales rise. Varian raised its fiscal 2001 EPS growth rate to 27%, before accounting for any losses related to equity investment in its dpiX flat panel consortium.

New Century Financial (NCEN ) posted a $0.17 Q1 loss vs. $0.38 EPS on 21% revenue drop, and raised its $1.10-$1.20 2001 EPS forecast to $1.15-$1.30.

Cyberonics (CYBX ) posted a $0.23 Q3 loss vs. $0.01 EPS despite a slight sales rise. First Union reportedly downgraded.

Mastec (MTZ ) posted $0.34 vs. $0.25 Q1 EPS from operations on 24% revenue rise. Mastec sees $0.41-$0.43 Q2 EPS on $330M-$340M revenue,and $1.74-$1.82 2001 EPS on 10% revenue growth.

Energizer (ENR ) posted $0.06 Q2 EPS vs. $0.21 loss (pro forma) on a 4.9% sales rise. The firm notes volume growth was partially offset by the currency devaluation in a number of key markets.

Illumina (ILMN ) posted a $0.17 Q1 loss vs. a $0.23 loss and sees a $0.19-$0.21 Q2 loss on $0.4M-$0.6M revenue and a $0.72-$0.76 2001 loss on $6M-$8M in revenues. Illumina says sales were driven by oligo sales and SNP service revenues.

Callaway Golf (ELY ) posted $0.47 vs. $0.22 Q1 EPS on a 32% sales rise. Callaway sees $1.54-$1.59 2001 EPS on $906M sales.

Rimage Corp. (RIMG ) posted $0.11 vs. $0.22 Q1 EPS on a 23% revenue decline. Rimage sees $0.10-$0.15 Q2 EPS on revenue of $10M-$12M.

Friedmans's (FRDM ) posted $0.21 vs. $0.21 Q2 EPS (operating income) on flat same-store sales and 9.5% higher total sales. The company sees continued weak retail jewelry sales for at least the next several quarters.

Intersil Holdings (ISIL ) posted $0.07 Q1 EPS vs. a $0.04 loss on a 9% revenue rise. The firms sees about $0.07 Q2 EPS on a 5%-8% revenue decline.

Halliburton Co. (HAL ) posted $0.20 vs. $0.06 Q1 EPS (continuing operations) on a 10% revenue rise.

WellPoint (WLP ) posted $1.48 vs. $1.23 Q1 EPS on a 21% total revenue rise. S&P maintains accumulate.

Brooks Automation (BRKS ) posted $0.40 vs. $0.42 Q2 EPS from operations as higher expenses offset 37% sales rise. Brooks sees declining revenues and profits in the second half, but less of a decline than forecast for the industry group as whole.

Standard Pacific (SPF ) posted $0.88 vs. $0.48 Q1 EPS on 24% revenue rise and wider gross margin.

Engelhard (EC ) posted $0.37 vs. $0.45 Q1 EPS as higher costs offset a 36% revenue rise. The firm maintains its $1.70-$1.80 2001 EPS estimate.

W-H Energy (WHES ) posted $0.35 Q1 EPS vs. a $0.10 loss on a 67% revenue rise. W-H sees $0.35-$0.37 Q2 EPS and $1.40-$1.50 2001 EPS, up from its previous $1.05-$1.15 estimate.

Morton's Restaurant (MRG ) posted $0.62 vs. $0.58 Q1 EPS on 4.3% revenue rise and notes Q1 comparable restaurant revenues dropped 3.3%.

Group 1 Auto (GPI ) posted $0.47 vs. $0.40 Q1 EPS on 8% revenue rise. GPI expects Q2 and 2001 to show growth in EPS on slightly higher revenues, with operating margin consistent to a slightly improved vs. last year.

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