Cisco Stumbles amid Telecom Weakness

Collins & Aikman set to buy Textron unit; Americredit posts sharply stronger earnings; plus more of today's stocks to watch

Cisco Systems (CSCO ) says visibility is limited, and doesn't see a bottom for three to six months. After the close Tuesday, Cisco posted $0.02 vs. $0.16 Q4 EPS (pro forma) on 25% lower sales. S&P maintains hold but cut the fiscal 2002 estimate. S&P, CS First Boston, Merrill, and ABN Amro cut estimates.

Collins & Aikman (CKC ) posted better than expected $0.02 vs. $0.18 Q2 EPS from continuing operations on a 9.8% sales drop. The company also says it sees $440M-$460M Q3 sales, and sees operating margins excluding restructuring charges at 4%-5% of sales. The firm also sees a $10M Q3 restructuring charge. According to The Wall Street Journal, Collins & Aikman agreed to buy Textron's TAC-Trim business for $1.3B.

Americredit Corp. (ACF ) posted $0.81 vs. $0.46 Q4 EPS on a 65% revenue rise. S&P maintains accumulate.

Robertson Stephens downgraded Icos Vision Systems (IVIS ) to market perform from buy.

Lehman reportedly downgraded Procter & Gamble (PG ) to market perform from buy.

Alliant Technology (ATK ) posted $1.22 vs. $1.08 Q1 EPS from continuing operations on a 46% sales rise and raised the fiscal 2002 EPS guidance to $5.35-$5.40 from $5.30-$5.35, and raised the fiscal 2003 estimate to $6.10-$6.25 from $6.05-$6.20. Alliant set a 3-for-2 stock split.

Emulex Corp. (EMLX ) posted $0.11 vs. $0.12 Q4 EPS (pro forma) despite a 43% revenue rise and sees Q1 revenues of about $55M on a seasonally soft summer and difficult macro climate. S&P maintains accumulate.

Chico's FAS (CHS ) posted a 21% July same store sales rise, and 54% total sales rise.

Lehman reportedly initiated coverage of Pentair Inc. (PNR ) with buy, and a $40 target.

Aetna (AET ) posted $0.07 vs. $0.77 Q2 EPS from continuing operations on a 2.7% revenue drop and notes the healthcare risk business continues to reflect higher medical costs from higher utilization.

Ballard Power (BLDP ) posted a C$0.45 Q2 loss vs. a C$0.21 loss as lower investment income offset sharply higher revenues. S&P maintains accumulate.

Albany Molecular (AMRI ) posted $0.26 vs. $0.19 Q2 EPS on a 46% revenue rise. The firm revised its 2001 guidance to $0.97-$0.99 from $0.96-$0.98 and sees $0.25-$0.25 Q3 EPS.

TMP Worldwide (TMPW ) posted $0.32 vs. $0.22 Q2 EPS on 11% higher commissions/fees and reiterated $1.40 2001 EPS guidance.

Anaren Microwave (ANEN ) posted $0.05 vs. $0.16 Q4 EPS on 17% lower sales and says visibility in its wireless segment remains limited.

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