Priceline Meets Targets

Government probes AOL; Adobe warns of a shortfall; plus more stocks in the news (PCLN ) posted pro forma Q2 $0.03 EPS, in line with estimates on $304.5 million in revenues.

Adobe Systems (ADBE ) sees Q3 EPS of $0.18 to $0.23, vs. the Street's $0.25 estimates.

AOL Time Warner (AOL ) confirmed the Dept. of Justice is making a inquiry into the company's AOL unit.

Murphy Oil (MUR ) announced a "significant" oil discovery on Kikeh prospect on Block K, offshore of Sabah, Malaysia. UBS Warburg reiterates buy.

Nvidia (NVDA ) sees $410 million to $430 million Q2 revenues, citing a weak PC market. Nvidia plans a large Q2 inventory write-off, and sees EPS at or above breakeven. S&P downgraded to sell. CS First Boston cut estimates.

CS First Boston and Morgan Stanley cut its targets on Concord EFS (CEFT ). On Tuesday the company posted $0.18 Q2 EPS (excluding charges).

Salomon Smith Barney and CS First Boston downgraded Sealed Air (SEE ). On Tuesday the company was hit by an unfavorable court decision that expands asbestos litigants' claims.

A European court reportedly dismissed a patent claim by Amgen (AMGN ), reversing an earlier decision in favor of the company's broad patent claim over erythropoeitin.

Cox Communication (COX ) posted 16% higher Q2 operating cash flow on a 19% revenue rise, and says it is on track to meet its 1.15 million new service net additions forecast. Cox says it will also meet its 13%-14% 2002 operating cash flow growth guidance.

Verizon (VZ ) posted $0.77 vs. $0.77 Q2 EPS (adjusted) on 1.8% lower total operating revenues, and sees $3.05-$3.09 2002 EPS on flat to 1% lower revenue; and $13B-$13.5 billion capital expenditures.

Merrill downgraded Eli Lilly (LLY ) to near term neutral from buy, citing valuation and manufacturing issues.

Lehman reportedly upgraded American Express (AXP ) to strong buy.

Alcoa (AA ) says as a result of capacity reduction, it will take a $15 million to $20 million Q3 after tax charge.

Merck 's (MRK ) prescription-drug unit, Medco Health Solutions Inc., withdrew its IPO of close to $1 billion due to market conditions.

McAfee (MCAF ) says with 4% of shares tendered, holders agreed that the latest 0.90 Networks Associates share offer for each McAffee Class A share is inadequate and undervalues the business.

Moody's Investor Service raised iSTar Financial's (SFI ) senior unsecured credit rating to positive.

Plantronics (PLT ) set a one million stock buyback.

IBM Corp. (IBM ) agreed to acquire PricewaterhouseCoopers' global business consulting/technology services unit for $3.5 billion in cash and stock.

Jones Apparel (JNY ) posted $0.53 vs. $0.47 Q2 operating EPS on a 10% revenue rise, and raised $2.65 2002 guidance to $2.72-$2.75 due to a strong Q2.

Cree (CREE ) posted a $0.31 Q4 loss vs. $0.09 EPS on 15% lower revenues and raised the Q1 guidance to $0.04 EPS from operations on $45 million in revenues due to a continued increase in demand for its LED products. CIBC World upgraded. CIBC upgraded to strong buy from buy, while Prudential reiterates buy.

Nvidia (NVDA ) sees $410M-$430M Q2 revenues, citing broad weakness in the PC market. The company plans a significant Q2 inventory write-off, and sees earnings at or above breakeven.

KLA-Tencor (KLAC ) posted $0.23 vs. $0.67 (including charges) Q4 EPS on 38% lower revenues, and says orders gradually increased during the second half.

Allegheny Energy (AYE ) posted a $0.26 Q2 operating loss vs. $0.96 EPS on a 21% revenue drop, and reiterates $2.50-$2.70 2002 operating EPS guidance, and set a $2.60-$2.80 2003 target.

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