Investors Take Markdowns after Federated Warning

Callaway Golf in play after founder's death?; Marconi signals weaker profits; plus more of today's stocks in the news

Federated Department Stores (FD ) shares were lower after the retailer said it sees $0.40-$0.50 Q2 EPS from operations, down from its earlier $0.70-$0.75 forecast. Federated cut its fiscal 2002 forecast to $3.60-$3.90 from $4.00-$4.25. S&P kept its hold rating on the shares. Goldman Sachs downgraded its rating from recommended list to market performer.

Callaway Golf (ELY ) shares were higher after the company announced the death of its founder and chairman, Ely Callaway, following a bout with pancreatic cancer. B. Riley & Co. says the news rekindles the possibility of the company becoming a takeover target.

Marconi PLC (MONI ) sees fiscal 2002 operating profit 50% below one year ago on a sales drop of about 15%. Separately, the company agreed to sell its medical systems business to Philips Electronics for $1.1 billion.

Dain Rauscher downgraded i2 Technologies (ITWO ) to buy from strong buy. On July 3, the company forecast a $0.12 Q2 loss from operations (pro forma).

Knight Trading (NITE ) sees lower than expected $0.07-$0.10 Q2 EPS from operations, citing a slowdown in trading and a decline in capital raising activities. The company will take a $0.06-$0.08 Q2 charge.

Apple Computer (AAPL ) announced that it will suspend production of its G4 cube personal computer indefinitely. S&P reiterated its hold rating on the shares.

August Technology (AUGT ) expects Q2 revenues to be about 7% below Q1 levels and 32% above one year ago. The company cites a downturn in microelectronic industries.

Compuware (CPWR ) sees better than expected $0.11-$0.12 Q1 EPS on revenues of about $445M, which is below the $460M consensus estimate. The company sees software new license revenue of about $95M vs. the $100M consensus estimate.

ASML Holding (ASML ) sees a EUR 95M-EUR 105M 6-months loss. The company notes customer comments about the Q2-Q3 outlook lead it to believe that a market recovery in Q4 is more unlikely. (SPRT ) sees lower than expected $6.2M-$6.6M Q2 revenue and a $0.22-$0.24 loss from operations (pro forma). The company cut its 2001 revenue forecast to $32.7M-$34.0M and sees a $0.65-$0.71 loss.

Dollar Tree (DLTR ) posted better than expected 2.7% lower Q2 same-store sales and 15% higher total sales. The company now believes its gross margin could exceed 35.5%. USB Pier Jaffray raised its estimates and reiterated its strong buy rating.

P.F. Chang's (PFCB ) posted 3.4% higher Q2 same store sales and 43% higher total sales. The company sees a 2% Q3 same-store sales rise and 26%-30% higher total sales.

Viamed (VIDA ) sees $3M Q2 revenue vs. $2.3M last year.

St. Jude Medical (STJ ) says a jury reached a verdict in a patent lawsuit filed against the company by Guidant Corp. (GDT ); the jury ruled St. Jude infringed one patent, though not willfully, and awarded $140M damages to Guidant.

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