US Airways Mulls Bankruptcy
S&P maintains avoid on US Airways (U ) as the company admitted the possibility of a bankruptcy. US Airways says it first will seek federal loan guarantees following huge losses since the Sept. 11 attacks.
US Cellular (USM ) agreed to acquire Chicago-area operations of PrimeCo Wireless Communications LLC for about $610M cash. S&P maintains hold.
Neose Technologies (NTEC ) announced that Wyeth Pharmaceutical will stop development of its rPSGL-Ig compound for heart treatment, which was to be "improved" with Neose's GlycoAdvance. The company cited disappointing clinical trial results. JP Morgan reportedly Neose to market perform from buy.
S&P tied weakness in Cooper Tire (CTB ) to media accounts that plaintiff lawyers will allege that Cooper's management told employees to destroyed documents related to a lawsuit against Cooper. S&P maintains accumulate. In a rebuttal Friday afternoon, the company denied the allegations.
S&P initiated coverage on Crown Castle (CCI ) with sell. On Thursday the company posted a $0.56 Q1 loss vs. a $0.41 loss.
American Greetings (AM ) reaffirmed guidance of $1.45-$1.55 fiscal 2003 EPS, and $0.40-$0.45 Q1 EPS, citing cost controls and improved greeting card sales.
CS First Boston says Mercury Interactive (MERQ ) hosted a positive analyst day, and reiterates strong buy.
Intersil (ISIL ) will be added to the S&P MidCap 400 Index after the close of trading on May 14, replacing DSP Group (DSPG ), which being added to the S&P 600. UBS Warburg upgraded to buy from hold.
Electronic Arts (ERTS ) posted $0.39 Q4 EPS vs. a $0.09 loss (pro forma) on 53% revenue rise. S&P and CS First Boston raised estimates. Deutsche Bank reportedly upgraded to strong buy from buy.
According to press reports, IBM Corp. (IBM ) will lay off up to 8,000 workers, or around 2.5% of its workforce.
American Standard (ASD ) will be added to the S&P 500 Index after the close of trading on May 10, replacing Sapient (SAPE ), which is being removed for lack of representation.
Western Wireless (WWCA ) posted a $1.22 Q1 loss vs. a $0.29 loss as higher operating expenses offset a 23% revenue rise. Robertson Stephens says the quarter was disappointing. Morgan Stanley downgraded.
Plato Learning (TUTR ) sees lower than expected $0.01-$0.03 Q2 EPS on $17M-$17.3M revenue. Plato agreed to acquire NetSchools Corp., a provider of Internet-based e-learning software and services solutions.
Entravision Communications (EVC ) posted 17% higher Q1 EBITDA on a 12% revenue rise, and sees 8%-11% higher Q2 EBITDA on a 7%-10% revenue rise.
Protein Design (PDLI ) posted $0.02 vs. $0.07 Q1 EPS on 18% lower revenue. The drug maker sees a $0.17-$0.26 2002 loss on 10%-15% lower total revenue.
WD-40 (WDFC ) agreed to acquire Heartland Corp. for $47 million in a combination of cash, stock and debt.
Pomeroy Computer (PMRY ) posted $0.36 vs. $0.23 Q1 EPS as tight expense control and operational efficiencies offset 4.8% lower revenues.
RehabiliCare (REHB ) posted $0.12 (excluding a charge) vs. $0.08 Q3 EPS on a 17% revenue rise.
Wendy's (WEN ) posted 5.7% higher same-store sales at Wendy's U.S. restaurants, and 9% higher same store sales at Tim Horton's restaurants in Canada as well as 16% higher sales in the U.S.
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