S&P and Moody's Slash Tyco's Debt Rating
S&P Ratings and Moody's cut Tyco's (TYC ) short and long term debt. New York prosecutors are pursuing a broader probe into whether Tyco repeatedly used its money to buy homes and artwork for several corporate officials without disclosing it to shareholders, according to press reports. Tyco also says its CIT IPO may be pushed out into July. S&P reiterated avoid, and JP Morgan cut to market perform from buy.
The Yankee Candle (YCC ) raised $0.04-$0.05 Q2 EPS estimate to $0.09-$0.10 on stronger than expected sales growth of 26%-28%. Morgan Stanley raised estimates.
Footstar (FTS ) says June sales in its Meldisco unit have increased substantially with return of more seasonable weather. The company noted June sales in its athletic unit are currently on plan.
UBS Warburg upgraded Philadelphia Suburban (PSC ) to buy from hold.
Moody's revised its outlook on AmeriCredit (ACF ) to negative, but reaffirmed its Ba1 debt rating.
Cabot (CBT ) entered into an amended agreement with Vishay Intertechnology (VSH ) confirming Vishay's obligation to buy tantalum products regularly throughout the term of its existing contract. JP Morgan upgraded to buy.
Intel (INTC ) cut the $6.4B-$7B 2Q revenue guidance to $6.2B-$6.5B. S&P, CIBC World and JP Morgan downgraded. USB Piper cut estimates.
Take-Two Interactive (TTWO ) posted $0.27 2Q EPS (pro forma) on a 93% sales rise, and raised fiscal 2002 guidance to $1.70 EPS (pro forma), but sees lower than expected $0.07 3Q EPS.
Pfizer reportedly will return worldwide development and commercialization rights for pagoclone, an experimental anxiety-disorder treatment, to Indevus Pharmaceutical (IDEV ), saying the drug didn't meet its desired level of efficacy in a late-stage trial.
Clean Harbor (CLHB ) says its bid to acquire the assets of Safety-Kleen's Chemical Services unit was declared the only "qualified bid"; Safety-Kleen will not conduct an auction of those assets.
Biogen (BGEN ) cut 2Q and 2002 EPS operating EPS guidance to $0.28-$0.32, and $1.50-$1.60, respectively, citing inventory adjustments by Avonex U.S. wholesalers, and softer than expected overall U.S. market growth.
RF Micro Device (RFMD ) lowered its previous guidance of $0.02- $0.03 1Q EPS on $107M-$110M revs to breakeven on $98M-$101M revenues, citing push-outs of orders booked in 4Q.
Robertson Stephens donwgraded Advanced Micro (AMD ) to market perform from buy.