Wireless Stocks Fall on Sprint News
Sprint Corp. (FON Group) (FON ) continues to expect 2002 EBITDA of about $4.6 billion and EPS that approaches $1.40. Sprint says 2002 revenues are expected to decline at the mid-single digit rate vs. the company's previous expectation of a decline in the low-single digit range.
Sprint PCS (PCS ) sees second quarter net customer adds of about 300,000. Merrill and JP Morgan downgraded the stock.
Deutsche Bank downgraded Qualcomm (QCOM ) to market perform. S&P downgraded to accumulate from buy.
TRW Inc. (TRW ) sees $1.08-$1.10 Q2 EPS, and $3.70-$3.75 for 2002, citing vehicle production increases in North America, and benefits accruing TRW's company-wide restructuring actions initiated during the past year.
Adobe Systems (ADBE ) posted $0.22 vs. $0.25 2Q GAAP EPS on 7.8% lower revenue, and lowered its outlook to $0.24-$0.27 3Q EPS (pro forma) and $0.26-$0.29 Q4 EPS. USB Piper downgraded. Late Thursday, S&P downgraded the stock.
S&P says Cirrus (CRUS ) did not comment on its current quarter at an analyst meeting Thursday, but did forecast revenue growth potential of 40%. S&P reiterates hold. Salomon SB downgraded.
Syncor (SCOR ) agreed to be acquired by Cardinal Health for about $1.1 billion. Terms: 0.52 Cardinal share per Syncor. S&P reiterates hold.
Silicon Labs (SLAB ) sees higher than expected $0.06 Q2 EPS on 30% sequential revenue growth.
Sanmina-Scientific (SANM ) says it didn't change previously issued Q3 guidance of $0.02-$0.04 cash EPS from operations on sales of about $2.5B-$2.7B. S&P reiterates accumulate. CS First Boston downgraded to hold from buy.
Gildan Activewear (GIL ) raised the $0.75-$0.80 Q3 EPS on $175M-$180M sales forecast to $0.85-$0.90 EPS on $190M sales, citing stronger than expected market conditions for activewear and strong market share performance in all segments.
Biogen (BGEN ) receives a a Complete Response Letter from the FDA in which the FDA requested clarification and information related to data Biogen previously submitted for U.S. marketing approval of Amevive.