Telecom Stocks Rally

Sprint PCS posts a narrower than expected loss; GM earnings jump before charge; plus more of today's stocks in the news

Sprint PCS (PCS ) posted a better than expected $0.15 first quarter loss per share, vs. a $0.40 loss, on 8% higher revenues. JP Morgan raised estimates. DB Alex Brown reiterates buy. S&P keeps hold.

Kaufman Brothers says WorldCom (WCOM ) is undervalued, and reiterates strong buy.

S&P believes Qualcomm (QCOM ) is up on solid first quarter results from Sprint PCS, and reiterates buy.

Texas Instruments (TXN ) reported first quarter EPS (pro forma) of $0.01, vs. $0.18, on 28% lower revenue. The chipmaker says it expects total revenue to grow about 10% in the second quarter from the first quarter. Salomon SB and CS First Boston keep buy rating, while Morgan Stanley raises estimates. S&P keeps accumulate, saying the bright order news implies it is tracking a bit better than expected for recovery.

Novellus Systems (NVLS ) reported a narrower than expected first quarter $0.02 loss from operations, vs. $0.62 EPS a year ago, on 63% lower revenue. S&P upgrades to accumulate. Goldman and CS First Boston raise estimates.

Multimedia Games (MGAM ) says the Deputy General Counsel of the National Indian Gaming Commission has ruled that no tribal-state compacts are in effect from Multimedia Games' MegaNanza, or any other class II games offered by Multimedia Games.

General Motors (GM ) reported first quarter EPS of $1.29, vs. $0.50 a year ago (adjusted). The auto maker forecasts total U.S. industry vehicle sales to be about 16.5 million units in 2002. It sees $2.00 second quarter EPS, excluding Hughes; and $5.00 in 2002. Including Hughes, it targets EPS of $1.90 in the second quarter and $4.60 in 2002.

Johnson & Johnson (JNJ ) posted first quarter EPS of $0.59, vs. $0.50, on 11% sales rise.

Coca-Cola (KO ) reported first quarter EPS of $0.40, vs. $0.36 a year ago, on 5% higher worldwide volume. The beverage maker's EPS excludes charges and accounting changes and was in line with analysts' forecasts.

FleetBoston Financial (FBF ) says it plans to reduce exposure to targeted areas of corporate lending and sell its Robertson Stephens securities unit after reporting earnings. First quarter EPS was $0.70, despite a 3.6% revenue drop.

Handspring (HAND ) reported third quarter loss per share of $0.14, vs. $0.06 loss (pro forma), on a 52% revenue decline. CIBC World downgraded the stock, while CS First Boston cut estimates.

Mohawk Industries (MHK ) reported first quarter EPS of $0.77, vs. $0.51, on an 8% sales rise. CS First Boston raises estimates. S&P maintains buy.

Maytag (MYG ) reported $0.73, vs. $0.46 (continuing operations; year ago excludes tax benefit) 1Q EPS on a 20% sales rise. The appliance maker sees second quarter results at same level as the first quarter.

H&R Block (HRB ) says it remains on track to meet fiscal year 2002 guidance of $2.20-$2.30 EPS on 10%-15% overall revenue growth. Goldman downgraded the stock, while S&P maintains buy.

Parametric Technology (PMTC ) posted a $0.02 Q2 loss vs. $0.09 EPS (pro forma) on 25% lower revenue. S&P says results are weaker than expected, and maintains hold.

AmeriCredit (ACF ) posted $1.02 vs. $0.70 Q3 EPS on a 41% revenue rise, and sees $1.00-$1.06 Q4 EPS, and $4.16-$4.28 calendar 2002 EPS. Bear Stearns upgraded to buy from attractive. S&P maintains accumulate.

JP Morgan downgraded Cabot Corp. (CBT ) to market perform from buy. On Monday the company sued Vishay International. alleging it and/or its units breached agreements between Cabot and Vishay.

Sprint (FON ) reported first quarter EPS of $0.32, vs. $0.36, on 8% lower revenue. The telecom services provider maintains 2002 EPS guidance. S&P keeps avoid.

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