Omnicom Shares Take a Dive
Omnicom (OMC ) is seen lower on a Wall Street Journal report that the company's Web stakes are sparking contoversy among board members. The company says it disagrees with the article and is confident in operating results, accounting practices and financial disclosures. S&P downgraded; Merrill keeps strong buy.
PayPal (PYPL ) registered six million shares for a proposed public offering. S&P reiterates hold.
Albertson's (ABS ) reaffirmed its positive double digit EPS outlook from continuing operations before charges for Q2 and fiscal 2003. Earlier Wednesday, Merrill and S&P downgraded.
Salomon downgraded Patterson Dental (PDCO ) to outperform from buy.
Carlisle Companies (CSL ) raised Q2 EPS to $0.75-$0.80, above analysts' consensus $0.60.
Martha Stewart (MSO ) is seen lower on news ImClone's former CEO was arrested for insider trading. June 6 wires reported Martha Stewart sold a "small number" of ImClone shares shortly before the negative FDA decision.
Puerto Rican Cement (PRN ) agreed to be acquired by Cemex in a $250 million deal. Terms: $35 cash per Puerto Rican share.
Hispanic Broadcasting (HSP ) agreed to be acquired by Univision Communications (UVN ) in a $3.5 billion deal. Terms: 0.85 Univision share for each Hispanic Broadcasting share.
CNBC reported that ImClone's (IMCL ) former chairman and CEO Sam Waksal has been arrested on insider trading charges.
Corning GLW says its Corning Cable Systems will eliminate more than 600 positions; these actions, along with the previously announced closing of the unit's Puerto Rico facility, represent a 10% cut in the unit's Americas workforce.
CS First Boston downgraded Arrow Electronic (ARW ) and Avnet (AVT ) to hold from buy, saying continued weaknesses in computer end markets and communication markets will hurt their businesses.
Safeway (SWY ) lowered Q2 EPS from operations guidance to the $0.71-$0.73 range, 5%-8% below existing estimates, and cut 2002 guidance to $2.86-$2.90, citing the continued soft economy, and an increase in competitive activity.
Procter & Gamble (PG ) expects Q4 core EPS from operations to grow in the high teens range, and exceed current Street estimates. P&G sees Q4 sales, excluding foreign exchange, growing in the mid-to-high single digit range.
Maytag (MYG ) raised Q2 EPS from continuing operations guidance to $0.85 on 25% higher sales, and sees $3.10 2002 EPS on 15% higher sales.
ICN Pharmaceutical (ICN ) chairman and CEO Milan Panic will retire at the end of the month.