American Greetings Profit Drops
American Greetings (AM ) posted better than expected $0.58 vs. $0.76 Q4 EPS on slightly lower sales, and sees $1.45-$1.55 fiscal 2003 EPS.
S&P downgraded Adelphia Communications (ADLAC ) to hold as increased debt obligations add liability. Earlier Wedneday the stock traded higher on strong Q4 results and positive guidance. But shares are lower after the company declined to fully explain how it is backing $2.3 billion in off-balance sheet debt.
Qualcomm (QCOM ) is seen lower on news that China Unicom said it would cut capital spending this year in the wake of slow adoption of its new network. S&P maintains buy.
Eagle Bancshares (EBSI )agreed to be acquired by RBC Centura Banks, a wholly owned unit of Royal Bank Of Canada, for $26 per share.
Wachovia upgraded Network Associates (NET ) to strong buy from buy. On Tuesday the company announced an SEC investigation into its accounting practices.
Merrill initiated coverage on Adaptec (ADPT ) with buy. Adeptec also inked a pact with IBM that is expected to lead to about $200M in new revenue opportunities over the next three years.
Skye Pharmaceutical (SKYE ) announced it will receive a milestone payment and royalties from GlaxoSmithKline (GSK ) when GlaxoSmithKline launches its Paxil CR formulation, expected by end of April 2002.
Lehman believes the fair value for Amazon.com (AMZN ) $10-$13 per share and maintains market perform. S&P views Electronic Boutique (ELBO ) as undervalued, and reiterates buy.
Tasty Baking (TBC ) sees lower than expected Q1 gross sales of about $64.1M-$64.6M vs. year ago's $65.7M. Janney Montgomery cut estimates.
Genzyme General (GENZ ) cut the Q1 EPS guidance to $0.21-$0.23, before items. Merrill downgraded to near and long term buy from strong buy.
At Tuesday's Morgan Stanley Global Automotive Seminar, Visteon Corp. (VC ) reaffirmed Q1 of about breakeven, excluding restructuring charges. CS First Boston raised estimates.
Salomon SB and UBS Warburg downgraded Emerson Electric (EMR ) to neutral from outperform as orders for the three months ended Feb. 28 fell 10%-15%. The company cut Q2 sales growth guidance to within the range of its Nov.-Jan. order rate, according to the company's 8-K.
Nabi Biopharmaceutical (NABI ) says the FDA released for sale initial production of Nabi-HB (Hepatitis B Immune Globulin), and will report sales from this production in Q1.
EMC Corp. (EMC ) is likely to weigh another round of layoffs as it struggles to align expenses with sluggish demand, according to press reports.
Philips (PHG ) is in a five-year deal with Dell to supply cathode-ray tube, flat-panel monitors, storage devices, and connectivity solutions. Dell is to become a preferred supplier to Philips. The deal could be worth up to $5B.
Morton's Restaurant (MRG ) agreed to be acquired by an affiliate of Castle Harlan, Inc. for $12.60 cash for each Morton's share.
Manugistics GRP (MANU ) posted a narrower than expected $0.02 Q4 loss vs. $0.05 EPS on 10% revenue decline, and sees a $0.02 Q1 loss on revenue of $84M-$85M, as well as $0.10 fiscal 2003 EPS on 15% revenue growth. CSFB raised estimates and target price. WR Hambrecht downgraded to market outperform from buy.
ESS Technology (ESST ) expects Q1 EPS of greater than $0.27 on about $75M revenues, ahead of previous guidance, citing strong demand for video products.
Coca-Cola (KO ) expects worldwide unit case volume to grow 4%-5% during Q1. S&P maintains accumulate.
Medicines Co. (MDCO ) says its probiotic, CTV-05, for bacterial vaginosis did not improve clinical cure rates at 30 days, the primary endpoint of trial. The company has no plans for making significant new investments in this product. Separately, the company inked collaboration with Nycomed Danmark to be an exclusive distributor of Angiomax in 35 countries.
TRW Inc. (TRW ) says it will not share any information with Northrop Grumman (NOC ). On Tuesday Northrop said it would consider sweetening its $47 takeover bid if due diligence showed a higher value was warranted.
Riverstone Networks (RSTN ) posted a $0.01 Q4 loss vs. $0.06 loss (pro forma) on 46% revenue rise, and posted a $0.23 GAAP loss.
Solectron (SLR ) says it has been selected by Juniper Networks to provide manufacturing services for its G10 Cable Modem Termination System.