Brocade Falls After Earnings Report

C&D Technologies slumps; Target falls after reporting results; Analog Devices' profit surges; plus more of today's stocks to watch

Brocade Communications (BRCD ) shares fell Thursday after the company posted 57 cents, vs. 6 cents, second-quarter earnings per share (GAAP) despite a 3% net revenue decline. The company posted breakeven, vs. 6 cents EPS, excluding items. S&P reiterated its avoid ranking, while Merrill Lynch cut its estimates and reiterated a neutral rating.

Wiltel Communications (WTEL ) shares rose after Leucadia National Corp. (LUK ) proposes to acquire remaining WTEL shares it doesn't already own. Terms: 0.3565 LUK shares per WTEL share.

Bear Stearns' downgrade of the trucking sector to market underweight from market weight hurt the group on Thursday. The downgrade was based on concerns regarding LTL carriers' ability to meet high expectations, which remain back-ended, despite the weak demand environment.

S&P believes Level 3 Communications (LVLT ) stock was higher on Berkshire Hathaway's (BRKA ) disclosure that it owned 870,000 LVLT shares as of March, 2003. S&P analyst Todd Rosenbluth says he continues to find LVLT's fundamentals unappealing, and reiterates sell ranking.

Advance Auto Parts (AAP ) shares rose after the company reported first-quarter EPS (GAAP) of 14 cents, vs. 34 cents a year ago, as one-time items offset a 2.9% sales rise. It's EPS excluding items was 98 cents. The company raised its second-quarter estimate to $1.01 to $1.05 for EPS from continuing operations, and 2003 forecast to $3.85 to $3.95 from $3.55. Lehman Brothers increased its estimates.

C&D Technologies (CHP ) shares fell after it cut first-quarter guidance to EPS of 11 cents on $76 million to $77 million in sales from 16 cents in EPS on $84 million in sales. First Albany downgraded the stock to neutral from buy.

Panera Bread (PNRA ) posted 25 cents, vs. 17 cents, first-quarter earnings per share (excluding an accounting change) on a 28% total revenue rise. Panera raised its 2003 earnings per share guidance to $1.00. S&P reiterates hold.

Gentiva Health Services (GTIV ) shares fell after the company revealed it was subpoenaed by the Dept. of Health and Human Services. The subpeona seeks information regarding the company's implementations of prior settlements with the U.S. government and its corporate integrity agreements; and treatment on cost reports of employees engaged in sales and marketing efforts. Legg Mason cut its rating on the shares to hold from buy.

Target (TGT ) shares fell after the retailer reported first-quarter EPS of 38 cents, the same as a year ago, on flat same-store sales.

Merrill Lynch downgraded Millennium Chemicals (MCH ), NOVA Chemicals (NCX ), and Lyondell Chemical (LYO ) to sell from neutral.

Intermagnetics General (IMGC ) shares fell after the company reaffirms fiscal year 2003 expectations. It still expects fiscal year 2004 EPS growth despite an anticipated drop in first-quarter MRI magnet deliveries. RBC Capital and First Albany downgraded the stock.

Computer Associates (CA ) posted an 18-cent fourth-quarter loss per share, vs. a 41-cent loss (charges included in both periods), on a 4% revenue rise. The company sees 5 cents to 10 cents fiscal 2004 GAAP loss per share. Federal investigators have reportedly issued two subpoenas recently in review of the company's accounting. RBC Capital upgrades, CS First Boston raises estimates, and S&P reiterates hold.

Intel (INTC ) is holding its annual analyst meeting today. According to Reuters, Chief Executive Craig Barrett told reporters ahead of the meeting: "We continue to be optimistic about the future. We continue to be cautious about tomorrow." Barrett also confirmed the company's outlook for second-quarter revenue of $6.4 billion to $7 billion.

Analog Devices (ADI ) posted second-quarter earnings per share of 19 cents, vs. 4 cents a year ago, on a 21% revenue rise.

Staar Surgical (STAA ) says the May 2003 issue of Cornea, The Journal of Cornea and External Disease, has published a study concluding that the company's ICL is safer and more effective than LASIK.

Children's Place (PLCE ) posted 21 cents, vs. 56 cents, first-quarter earnings per share on a 13% same-store sales decline. S&P reiterates sell rating.

Pep Boys (PBY ) posted an 18-cent first-quarter loss per share, vs. 26 cents EPS (GAAP), on 5.3% lower revenues.

Eastman Kodak (EK ) and Hewlett-Packard (HPQ ) will dissolve their joint venture to develop inkjet photofinishing labs for use in retail, created three years ago.

AnnTaylor Stores (ANN ) posted 39 cents, vs. 45 cents, first-quarter earnings per share on 6.5% lower comparable-store sales.

Gateway (GTW ) says the U.S. attorney has launched criminal probe of the company's accounting, a month after it restated results, according to a Wall Street Journal report.

Intuit (INTU ) posted $1.40 (including a $71 million gain on the sale of a Japanese unit), vs. 67 cents, third-quarter earnings per share (GAAP basis) on a 29% revenue rise. The company sees a $41 million to $46 million fourth quarter GAAP operating loss on $240 million to $250 million in revenues.

American Eagle Outfitters (AEOS ) posted 9 cents, vs. 17 cents, first-quarter earnings per share on a 5.8% same-store sales decline.

Vivendi Universal (V ) posted first-quarter revenue of 6.232 billion euros, vs. 14.649 billion euros. Excluding Vivendi Environnement, publishing businesses divested in 2002 and 2003, and currency effects, pro forma revenue declined 3%. The company confirmed 2003 earnings targets.

BEA Systems (BEAS ) posted 6 cents, vs. 1 cent, first-quarter earnings per share (GAAP basis) on 5.5% revenue rise.

Zale Corp. (ZLC ) posted 29 cents, vs. 22 cents, third-quarter earnings per share as higher operating margins from tight controls on inventory and expenses offset flat same store sales, total revenue.

Flowers Foods (FLO ) posted 44 cents, vs. 43 cents, first-quarter earnings per share from continuing operations on a 9.7% rise in sales from continuing operations. The company sees $1.40 billion to $1.45 billion 2003 sales from continuing operations.

XOMA Ltd. (XOMA ) posted an 18-cent first-quarter loss per share, vs. an 8-cent loss, on a sharp revenue decline and a 21% increase in research and development costs.

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