IBM Advances

Tyco says no fraud found in accounting review; CompuDyne cuts forecasts; plus more of today's stocks in the news

SoundView expects IBM Corp.'s (IBM ) fourth quarter earnings per share to beat the $1.30 consensus by six cents, after channel checks show U.S. operations and revenues were above plan.

Tyco (TYC ) says the results of an internal accounting review found no significant or systemic fraud affecting its prior financial statements. Tyco will take a $382 million pretax adjustment for 2002. S&P keeps neutral; Lehman reiterates overweight.

Kerr-McGee (KMG ) will take an after-tax noncash charge of about $385 million during the fourth quarter for estimated costs related to impairments for the Leadon field and various other fields in the North Sea and Gulf of Mexico shelf. S&P keeps its accumulate ranking, while AG Edwards keeps hold.

CompuDyne (CDCY ) expects the fourth quarter to be "nominally" profitable, citing cost overruns on several projects in the West Coast Corrections segment, and underutilization of plant capacity as well as delays in awards and contracts in Public Safety segment.

Morgan Stanley cut its estimate and target on Philip Morris (MO ).

Magnum Hunter (MHR ) sees lower than expected 2003 earnings per share of 12 cents.

Sonic Innovation (SNCI ) sees a two cents fourth quarter loss on sales of roughly $17 million, and says net sales were hampered by stagnation in the global hearing aid market.

King Pharmaceuticals (KG ) acquired the rights to three branded prescription drugs from Aventis: Intal and Tilade, two inhaled anti-inflammatory agents for the management of asthma; and worldwide rights, excluding Japan, to Synercid, an injectable antibiotic.

MeriStar Hospitality > (MHX ) expects fourth quarter funds from operations to approximate the lower end of its previous guidance range due to softer than expected revenue per available room growth of 4%-5%. Meristar will not pay a fourth quarter dividend.

Target (TGT ) reportedly says same store sales were "well above plan" last week, but the company remains far below its goal of 3%-5% growth in December.

Hillenbrand (HB ) delayed the filing of a 10-K to allow additional time to determine an appropriate fourth quarter charge related to its antitrust litigation with Kinetic Concepts.

Allete (ALE ) says a Minnesota Power unit delayed indefinitely its plans to build a natural gas-fired electric generating facility in Wisconsin due to the near term outlook for wholesale power markets. Minnesota Power will take about a $5 million charge.

Pacific Sunwear (PSUN ) set a 3-for-2 stock split.

    Before it's here, it's on the Bloomberg Terminal. LEARN MORE