Tellabs Sinks Amid Analysts' Concerns

Shaw Group trades lower on accounting rumors; Veritas and Sun announce a new storage deal; plus other stocks in the news

Tellabs (TLAB ) cut Q2 guidance to breakeven net (from operations) on sales of about $500M. CS First Boston downgraded to hold from buy. S&P downgraded to hold. Merrill and DB Alex. Brown also downgraded.

S&P tied weakness in Shaw Group (SGR ) to rumors of accounting issues. S&P believes the rumors are unfounded, and maintains accumulate.

First Albany upgraded Professional Detailing (PDII ) to strong buy from buy on valuation and industry opportunity.

Veritas Software (VRTS ) and Sun Microsystems (SUNW ) jointly announced a turnkey network attached storage (NAS) solution to be marketed though two Sun IForce channel partners. CS First Boston reiterates strong buy.

Morgan Stanley downgraded Qwest Communications (Q ) to neutral from outperform. On Tuesday the company reiterated guidance for 12%-13% Q2 revenue growth.

Late Tuesday Merrill downgraded Exodus Communications (EXDS ) to near-term neutral and long-term neutral from buy. Shares are trading lower.

Triquint Semiconductor (TQNT ) reiterates Q2 guidance of $0.03 EPS, and $60M-$65M revenues. Merrill reiterates near-term accumulate. Dain Rauscher reiterates buy. CS First Boston reiterates hold.

Kansas City So. (KSU ) says it will no longer pursue offerings of stock and mandatory convertible units.

Genentech returned the rights to Inspire Pharmaceutical's (ISPH ) respiratory programs in chronic bronchitis, cystic fibrosis, sinusitis to Inspire as part of a review of Genentech's development portfolio.

Pacific Growth downgraded Keithley Instruments (KEI ) to neutral from buy.

Potash Corp. (POT ) says Q2 EPS will likely be 15% lower than the previous guidance of about $1.00.

Morgan Stanley, Goldman, and ABN Amro downgraded Atlas Air World (CGO ). On Tuesday Atlas forecast breakeven Q2 and $0.90-$1.10 2001 EPS from operations.

Rohm & Haas (ROH ) sees Q2 operating EPS of $0.27-$0.29 vs. a year ago's $0.42. Salomon SB upgraded to outperform from buy. S&P maintains hold.

Exactech Inc. (EXAC ) sees $0.06-$0.08 Q2 EPS, and $0.13-$0.15 for Q3. Fahnestock downgraded to hold.

Colonial Bancgroup (CNB ) will be added to the S&P MidCap 400 after the close of trading on June 22. replacing Zions.

As a result of continuing weakness in the U.S. economy and near record high fuel prices, Northwest Airlines (NWAC ) expects a Q2 loss of $50M-$75M.

UAL Corp. (UAL ) expects to post double-digit decline in unit revenue in Q2, reflecting the industry-wide effects of the weakening U.S. economy.

Jabil Circuit (JBL ) posted $0.16 vs. $0.21 Q3 cash EPS as lower gross profit offset a 8.3% revenue rise. Jabil sees $0.13-$0.15 Q4 cash EPS on $950M-$1.05B revenue. S&P maintains hold. CIBC World, CS First Boston, Bear Stearns and Lehman cut estimates.

Teradyne (TER ) cut Q2 guidance to revenue of $350M-$375M, on a loss of $0.05-$0.10, including a benefit from the pending sale of military connections business. Goldman cut estimates, and says the stock looks expensive. S&P downgraded to avoid from hold.

Red Hat Inc. (RHAT ) posted breakeven Q1 vs. an $0.02 loss on a 18% revenue rise. WR Hambrecht downgraded to neutral from buy, saying the company is unable to reiterate previous fiscal 2002 guidance.

Asyst Technology (ASYT ) cut Q1 revenue guidance from about $75M to $65M- $70M, citing a continuing slowdown in demand across the semiconductor industry. Tucker Anthony cut estimates and target; reiterates market underperform.

Lennar Corp. ( LEN ) posted $1.40 vs. $0.64 Q2 EPS on a 44% revenue rise and raised the 2001 EPS estimate to $5.25 from $4.70; sees $6.00 for 2002. S&P maintains buy.

American Management System (AMSY ) sees lower than expected $0.30-$0.34 Q2 EPS from operations on revenues of $319M-325M. S&P maintains hold. JP Morgan downgraded.

UStarcom Inc. (UTSI ) filed to offer 9 million shares.

Infineon Technology (IFX ) sees up to a 30% sequential revenue decline, and up to EUR 600M loss (before interest, income taxes), citing price erosion and one-time charges from inventory write downs.

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