Enron Lowers Profits for Last Four Years
Enron (ENE ) shares were relatively flat at $9. According to an SEC filing, the company reduced its previously reported net income back to 1997 by $586M, citing improperly accounting for dealings with partnerships. S&P maintains hold.
Palm (PALM ) was trading flat after the CEO resigned. The chairman will serve as CEO until a successor is found. The company adds 2Q is on track. UBS Warburg reiterates its strong buy rating. S&P keeps a hold.
Adelphia Communications (ADLAC ) was down after it posted $1.54 3Q loss vs. $1.06 loss as higher expenses, and more shares offset 23% revenue rise. The company reaffirmed 11%-12.5% 2001 EBITDA growth estimate. S&P downgraded the stock to avoid from hold.
Genentech (DNA ) was up after it set a $625M share buyback.
Solar cell maker AstroPower Inc (APWR ) posted lower than expected third quarter earnings per share of $0.10 versus $0.05 on 37% revenue rise. The company sees 2002 revenues of $105 million to $125 million. CS First Boston and Banc of America downgraded the stocks.
Media giant Walt Disney (DIS ) posted fourth quarter earnings per share of $0.06 versus $0.11 (pro forma) on 5% lower revenue. The company sees first quarter operating income "somewhat less than half" than year ago levels, citing the terrorist attacks and the economy. UBS Warburg cut its earnings estimates for the company while S&P maintains its avoid rating.
Processed food products company HJ Heinz (HNZ ) said it sees lower than expected second quarter earings per share in the $0.59-$0.60 range, citing the terrorist attacks, the economic downturn and the higher than expected supply chain costs in Australia, New Zealand and Japan.
Merrill reportedly raised its investment rating on specialty pharmaceutical company Sicor Inc (SCRI ) to near term buy from accumulate.
CIBC World lowered its investment rating on energy company Vintage Petroleum to hold from strong buy. The company posted third quarter earnings per share of $0.20 versus $0.92.
Morgan Stanley lowered its investment rating on telecommunications equipment maker Motorola (MOT ) to neutral from outperform.