Nike Net Jumps on Higher Sales

ScanSource dives on a warning; Tenet served with search warrants; plus more of today's stocks in the news

Nike (NKE ) posted 57 cents second quarter earnings per share vs. 48 cents earnings per share on a 7.6% sales increase -- beating expectations. Analysts were looking for 56 cents earnings per share. Nike shares fell earlier this week after Foot Locker said it would further curb purchases of the shoemaker's top products.

Identification technology company ScanSource (SCSC ) says it is unlikely that second quarter revenue will exceed the midpoint of a previously disclosed range of $235 million to $255 million, and may be slightly below the low end of a range.

Tenet Healthcare (THC ) was halted after federal search warrants were obtained by the U.S. Attorney's Office in San Diego. The company believes the searches are likely related to physician recruitment, relocation, and consulting issues.

Clorox (CLX ) will record a $20 million to $30 million second quarter charge for asset-impairment of its Argentina business. The maker of consumer cleaning products now sees second quarter earnings per share of 31 cents to 38 cents. S&P reiterates buy.

ICOS (ICOS ) says it will discontinue the development of Pafase to treat severe sepsis, an overwhelming bacterial infection. S&P reiterates hold.

Sepracor (SEPR ) plans to submit a New Drug Application (NDA) for Estorra, its treatment for insomnia, by mid-February. S&P keeps sell. JP Morgan reportedly upgraded to overweight.

Barnes & Noble (BKS ) says based on lower than anticipated holiday sales to date, if current trends continue, the bookstore chain expects $1.19-$1.31 fourth quarter earnings per share on flat to down 3% same store sales. Prudential cut estimates.

Bed Bath & Beyond (BBBY ) posted better than expected 25 cents vs. 18 cents third quarter earnings per share on an 8% same store sales rise and 23% total sales rise. Merrill Lynch and CIBC World raised their estimates.

Goldman Sachs (GS ) posted 98 cents vs. 93 cents fourth quarter earnings per share despite a 17% revenue decline.

Carnival (CCL ) posted 33 cents vs. 20 cents fourth quarter earnings per share on an 8.4% revenue rise, and says due to cancelled cruises, its expected increase in capacity in the first quarter has been reduced from 15.5% to 14.9%.

Honeywell (HON ) expects to take a $1.9 billion after-tax fourth quarter charge to cover costs associated with asbestos claims, write-downs of the materials business, and staff reductions. Honeywell expects 50 cents in fourth quarter 2002 ongoing earnings per share, and an $1.80 loss (including charge).

Argosy Gaming (AGY ) says it doesn't expect to meet the mid-60-cent range of fourth quarter earnings per share guidance based on the most recent operating results. The casino operator noted a big portion of the shortfall is a result of lower than expected revenue growth at the company's Lawrenceburg, Indiana property.

Family Dollar (FDO ) posted 33 cents vs. 29 cents first quarter earnings per share on a 14% sales rise. For the five-week period ending Jan. 4, 2003, the discount retailer plans for sales in existing stores to increase in the 3%-5% range.

Dole Foods (DOL ) CEO David Murdock will acquire about 76% of the common stock that he and his family don't currently own for $33.50 per share. The consideration places the total enterprise value of Dole, including debt assumption, at about $2.5 billion.

Precise Software (PRSE ) agreed to be acquried by Veritas Software in a deal valued at $537 million. Terms: $16.50 cash, or up to 25% of value in Veritas in stock, and the rest in cash.

ConAgra (CAG ) posted 44 cents vs. 44 cents second quarter earnings per share on a 19% sales drop, and continues to expect reported fiscal 2003 earnings per share to show a high single-digit rate of growth, and to be in the range of $1.60.

Microchip Technologies (MCHP ) expects third quarter sales growth of 2%-5% sequentially, and earnings per share of 17 cents to 18 cents, unchanged from the previous guidance. S&P reiterates buy.

Jack in the Box (JBX ) cut its first quarter earnings per share forecast to 55 cents to 63 cents and cut the $2.42 fiscal 2003 estimate to $2.01-$2.04, citing lower same-store sales expectations.

Novartis (NVS ) received approval from the FDA to market Clozaril for the treatment of recurrent suicidal behavior in patients with schizophrenia or schizoaffective disorder who are at chronic risk.

International Multifoods (IMC ) posted 81 cents vs. 21 cents third quarter earnings per share from continuing operations (before items) on sharply higher sales. The company sees $1.57-$1.63 fiscal 2003 earnings per share from continuing operations (before items), and $1.70-$1.80 fiscal 2004.

Philip Morris (MO ) says a California trial judge reduced the punitive damages portion of an award to a sick smoker from $28 billion to $28 million.

Oracle (ORCL ) posted better than expected 10 cents vs. 10 cents second quarter earnings per share despite a 3% revenue decline. Janney Montgomery reportedly upgraded to buy. Needham reportedly downgraded to hold.

Palm (PALM ) posted 12 cents second quarter earnings per share vs. an 89 cent loss (GAAP) as higher gross margin and lower costs offset a 9% revenue drop. Palm posted 19 cents earnings per share (pro forma). The company reportedly sees a "modest" third quarter loss. BMO Nesbitt upgraded. S&P keeps hold.

Trimeris (TRMS ) and Roche say initial commercial scale production yields for their investigational HIV drug, Fuzeon, were lower and took longer than expected. Leerink Swann reportedly downgraded.

Barr Laboratories (BRL ) says the FDA has granted final approval of its application to make and market a generic version of Ortho-McNeil Pharmaceutical's Ortho Tri-Cyclen oral contraceptive.

Intersil (ISIL ) cut its fourth quarter earnings per share guidance to 18 cents on a sequential revenue decline of 5%-7%, citing weakness in the Wireless Networking Product Group. S&P reiterates hold.

General Dynamics (GD ) will acquire General Motors (GM ) Defense unit for $1.1 billion cash.

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