Plantronics Gets Ahead on Cell Phone Ban
Plantronics (PLT ) is seen higher on news the New York State Assembly passed a bill making it the first state to ban motorists from using handheld cell phones while driving.
Schering Plough (SGP ) announced the resignation of president and COO, Raul E. Cesan.
CVS Corp. (CVS ) sees $0.48 Q2 and $1.92-$1.96 2001 EPS, citing slowing same-store sales growth and increased gross margin pressure. S&P and J.P. Morgan downgraded the shares.
Xilinx Inc. (XLNX ) expects revenues for Q1 to decline by about 32% sequentially, citing the decreased turns business in the first three weeks of June. Merrill lowered estimates. S&P maintains buy.
DB Alex Brown upgraded Swift Transport (SWFT ) to strong buy from market perform.
Salomon SB downgraded Brunswick (BC ) to outperform from buy.
Wit Soundview reiterates strong buy, with a $45 target, on i2 Technologies (ITWO ).
Xerox (XRX ) reportedly says business is improving and says it's on track to return to profitability in the second half and expects to post profit for 2001.
Raytheon (RTN ) now expects eventual liability on two Massachusetts construction projects to range between $450M-$700M vs. the earlier $325M estimate. S&P maintains hold.
Pennzoil-Quaker (PZL ) sees $0.13-$0.15 Q2 EPS and $0.65-$0.70 EPS for 2001, citing weak demand for automotive products. The company set a restructuring plan and reduced its quarterly dividend to 2.5 cents. JP Morgan downgraded to market perform.
Palm Inc. (PALM ) reported better-than-expected $165.3M Q4 revenues, and a pro forma operating loss of $153.6M. Palm guided revenues down for the next quarter, but sees profitability in November quarter results. CS First Boston, Lehman, CIBC World, JP Morgan, and S&P raised estimates. USB Piper and ABN Amro upgraded the stock.
UBS Warburg upgraded Handspring Inc. (HAND ) to buy from hold. CIBC World and CS First Boston reiterate buy.
Thomas Weisel upgraded Cirrus Logic (CRUS ) to strong buy.
Supervalu (SVU ) posted $0.45 vs. $0.53 Q1 EPS on slightly lower sales. The company remains comfortable with fiscal 2002 EPS range of $1.70-$1.80. S&P maintains avoid.
Thomas Weisel upgraded Elantec Semiconductor (ELNT ) to strong buy from buy.
Plug Power (PLUG ) expanded its distribution pacts with several concerns for the company's Proton Exchange Membrane fuel cell systems.
Duck Head Apparel (DHA ) agreed to be acquired by Tropical Sportswear International (TSIC ) for $4.75 per share.
Lamson & Session (LMS ) sees $0.03-0.08 Q2 EPS vs. $0.20-$0.25 previous guidance on 6%-7% sales growth, citing weak telecom and industrial electrical markets.
American Axle (AXL ) expects Q2 EPS to be about 20% higher than current consensus estimates of $0.55, citing stronger sales and continued tight cost control measures.
Pinnacle Entertainment (PNK ) sees a $0.17-$0.21 Q2 loss vs. $0.12 EPS. Pinnacle notes its Belterra and Bossier City performance are expected to be lower than the previous guidance, and sees a $0.10-$0.17 2001 loss.
CIBC World upgraded Check Point Software (CHKP ) to strong buy from buy. Dain Rauscher reiterates strong buy.
Goldman removed Walt Disney (DIS ) from recommended list, and now rates market outperform.
Delta and Pine Land (DLP ) posted $0.56 vs. $0.89 Q3 EPS on 21% lower sales, citing declining cotton prices and adverse weather.
SpeedFam-IPEC (SFAM ) posted a $0.45 Q4 loss from operations vs. $0.10 EPS on 46% lower revenues.
Dean Foods (DF ) posted better-than-expected $0.43 vs. $0.83 Q4 EPS from operations as higher costs and expenses offset a 13% sales rise.
Photronics Inc. (PLAB ) sees $0.01-$0.05 Q3 EPS on revenues 15%-20% below Q2 levels, citing a downturn in the global semiconductor industry. Merrill downgraded, but S&P maintains hold.
Merrill downgraded Synopsys (SNPS ) to near-term neutral from accumulate, and downgraded Cadence Design (CDN ) to near-term neutral from buy.
Danaher Corp. (DHR ) says if revenue weakness continues through the second half, the company believes cost cuts will allow Danaher to perform at levels above a year ago's, although below analyst estimates. Danaher says it's comfortable with Q2 consensus estimates. UBS Warburg and Bear Stearns cut estimates.
Vitesse Semiconductor (VTSS ) sees a $0.06 Q3 loss (pro forma, excluding charges) on about $60M revenues, citing continued weakness in demand and order cancellations. Robertson Stephens, Prudential and Needham maintain buy, but cut the estimates. S&P downgraded the shares.
Synplicity (SYNP ) sees $0.01 Q2 EPS on about $12.4M revenues, and sees 2001 revenue growth of 43% vs. its earlier expectation for 60% growth and $0.05 2001 EPS. Robertson Stephens cut the target. Dain Rauscher downgraded the shares.
ATI Technologies (ATYT ) posted a $0.02 Q3 loss vs. a $0.11 loss (both adjusted) despite an 11% sales drop. ATI sees about breakeven Q4 (adjusted) and profitability in fiscal 2002.
Catalina Marketing (POS ) announced a multi-year partnership with General Mills.
Lone Star Steakhouse (STAR ) will replace in the S&P MidCap 400 Certegy Inc. (CEY ), which is being spin off by Equifax, after the close of trading on July 6.