H-P Restates Cash Flow, Shares Fall

ADP drops on a warning; EBay jumps; plus more of today's stocks in the news

In a 10-Q reported Wednesday, Hewlett-Packard (HPQ ) restated its first quarter operating cash flow from operations as $647 million, lower than the previously reported $791 million. Merrill keeps buy.

Automatic Data Processing (ADP ) fell after it cut the fiscal 2003 guidance to $1.68-$1.73 earnings per share and now expects flat revenues for 2003 instead of low, single digit revenue growth. The provider of billing processing services cited a continued weak economy and increased investment in business.

Goldman Sachs raised the first quarter and 2003 revenue and earnings per share estimates, and its maintains outperform rating on EBay (EBAY ).

Health-care products distributor Baxter (BAX ) slipped after lowering its first quarter earnings per share guidance to 36 cents to 38 cents, and now expects 5% to 7% sales growth. The comapny cited increased competition, pricing pressures in the plasma-protein market, lower inventories, and the impact of foreign exchange conversion rates. S&P reiterates avoid.

Urban Outfitters (URBN ) shares rose after the specialty retailer posted 42 cents vs. 33 cents fourth quarter earnings per share on 13% higher sales. Pacific Growth says the results are stronger than expected, and maintains overweight.

Tyco International (TYC ) lowered its fiscal 2003 (Sept.) earnings per share guidance to $1.40 to $1.50, before charges, and sees $265 million to $325 million in second quarter charges related primarily to its Fire & Security Services business, which will reduce earnings per share by nine cents to 11 cents.

Computer systems maker Comverse Technology (CMVT ) posted an eight-cent fourth quarter loss from operations vs. a six-cent loss on 33% lower revenues, and announces Itsik Danziger will step down as president. J.P. Morgan and Wedbush Morgan upgraded.

AOL Time Warner (AOL ) is exploring a plan to sell separately its Warner Music division's music-publishing arm, the DVD and CD manufacturing unit, and recorded music operations, according to the New York Post.

Philips Electronics (PHG ) will close its San Antonio lighting products facility and take a restructuring charge of 200 million euros, which will be taken over the first three quarters of 2003. As a result, Philips will take an overall headcount reduction of 1,600.

Entergy (ETR ) sees at least $1.05 first quarter operating earnings per share, and $1.65 reported earnings per share (including a one-time 60-cent gain). The company raffirmed its $3.75 to $3.95 2003 operating earnings per share, and revised its reported 2003 earnings per share to $4.35 to $4.55 to reflect an accounting change.

International Paper (IP ) sees first quarter earnings per share comparable with a year ago, citing seasonal weakness, higher energy costs, the weather in the South, and war uncertainties.

Dick's Sporting Goods (DKS ) posted 82 cents vs. 59 cents fourth quarter earnings per share (pro forma) on a 4.9% same store sales rise, and a 16% total sales rise. Dick's sees 25 cents to 27 cents first quarter earnings per share, and $1.95 for fiscal 2004.

Panera Bread (PNRA ) posted a 1.9% decline in February system-wide same store sales, and reiterated its 24 cents first quarter earnings per share, and 99 cents 2003 earnings per share guidance.

Needham upgraded Analogic (ALOG ) to strong buy from buy. On Wednesday the company posted $1.59 vs. five cents second quarter earnings per share on a sharp revenue rise.

Merrill downgraded United Parcel (UPS ) and FedEx (FDX ) to sell from neutral, and reiterated its sell on Airborne (ABF ).

Auto parts retailer Pep Boys (PBY ) posted three cents vs. 11 cents fourth quarter earnings per share from operations on 5.2% lower same store sales and 5% lower total sales. The company posted a four-cent fourth quarter loss (GAAP).

ConAgra Foods (CAG ) expects 70 cents to 73 cents second half fiscal 2003 earnings per share, resulting in $1.57 to $1.60 for fiscal 2003, which updates the previous $1.60 forecast. ConAgra sees 30 cents third quarter and 40 cents to 43 cents fourth quarter earnings per share.

Needham downgraded Applied Material (AMAT ) to hold from buy.

Lehman upgraded Countrywide Financial (CFC ) to overweight from equal-weight.

Cymer (CYMI ) expects first quarter sales will be at the low end of the prior $71 million to $74 million guidance. S&P reiterates avoid. Needham downgraded to buy.

Ryder System (R ) set a shareholder rights plan.

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