Tenet Healthcare Sinks on a Warning

Marvel declines; Biogen drops on merger news; plus more of today's stocks in the news

Tenet Healthcare (THC ) sees second-quarter performance significantly below consensus, and expects earnings per share from continuing operations for the combined third quarter and fourth quarter to total between 40 cents to 50 cents, excluding the effects of any future impairment, restructure, and other charges. S&P and Advest downgraded.

Southwest Securities maintains strong buy on Marvel Enterprises (MVL ), calling the weaker-than-expected opening of The Hulk movie a temporary setback. The Hulk's $62.6 million sales in its opening weekend came in less than Spiderman's $115 million sales and X-Men's $86 million sales.

IDEC Pharmaceuticals (IDPH ) will merge with Biogen (BGEN ). Terms: 1.15 IDEC share for each Biogen share, resulting in roughly equal ownership of the new company, Biogen IDEC. The companies expect 15% compound annual revenue growth, and about 20% cash earnings per share growth in 2003-2007. Biogen reaffirmed the second-quarter guidance; S&P reiterates hold. Separately, Genentech (DNA ) and IDEC will develop one or more new anti-CD20 antibodies targeting B-cell disorders for a broad range of indications.

Hooker Furniture (HOFT ) posted 42 cents vs. 55 cents second-quarter earnings per share as higher costs offset a 29% sales rise.

Moody's put its ratings of Calpine (CPN ) B1 senior unsecured debt under review for a possible downgrade. S&P notes the shares of this leading energy merchant are weaker as credit and bankruptcy concerns revive.

American Capital Strategies (ACAS ) tied a stock drop to a Barron's report that says the company's deteriorating loan portfolio isn't reflected in its earnings measurement. American Capital says the report contains previously heard news and criticisms.

Unilever (UN ) says first-half performance was slower than expected. The Dutch conglomerate giant revised its outlook of leading brand growth to around 4% for year. Unilever still expects to meet the 2003 earnings outlook.

Walgreen (WAG ) posted 29 cents vs. 32 cents second-quarter earnings per share despite 8.2% higher same store sales. S&P reiterates accumulate.

Bear Stearns downgraded Six Flags (PKS ) to underperform from peer perform.

With partners Genentech and Novartis, Tanox (TNOX ) received FDA approval for asthma treatment Xolair. Adams Harkness downgraded Tanox to market perform from buy.

Rohm & Haas (ROH ) expects second-quarter sales to be 8%-10% higher than year ago, and sees a 3-cent to 6-cent loss (including charges,) citing general weakness in the economy.

Goodyear Tire (GT ) says industry shipments of consumer replacement tires in May declined almost 4% from a year ago, while industry shipments of commercial replacement tires were up 8%, and industry shipments to original equipment manufacturers were down 8%. S&P keeps avoid.

Lee Enterprises (LEE ) posted 3.5% lower total May advertising revenue (excluding acquisitions and divestitures), and 3.7% lower retail ad revenue. Lee sxpects 45 cents to 47 cents third-quarter EPS.

Cytec Industries (CYT ) will acquire the metal extractant products, and intermediate and stabilizers businesses of Avecia Investments for roughly $97 million.

Immunomedics 's (IMMU ) says its carcinoembryonic antigen radioimmunotherapy was shown to be effective in a new model of colorectal cancer spread.

Avery Dennison (AVY ) lowered the 77 cents to 82 cents second-quarter earnings per share guidance to 68 cents to 72 cents. It sees $1.20 billion to $1.23 billion second-quarter revenue, citing slower-than-expected sales growth due to soft economic conditions. S&P cut its estimates.

Scholastic (SCHL ) says Harry Potter and the Order of the Phoenix sold five million copies in the first 24 hours of its release, a new publishing record.

U-Haul parent AMERCO (UHAL ) filed for Chapter 11 in order to expedite restructuring of its debt. Several units, including U-Haul, are not included in the filing; the filing is not expected to impact the operations of these units. Roth Capital upgraded to strong buy from buy.

Ribapharm (RNA ) says ICN Pharmaceutical's unsolicited tender offer to acquire the outstanding shares of Ribapharm it doesn't already own, at a price of $5.60 per share, is inadequate. Ribapharm recommends that shareholders reject the offer.

Apollo Group (APOL ) posted 39 cents vs. 27 cents third-quarter earnings per share on a 32% revenue rise. The provider of higher-education services sees 33 cents fourth-quarter earnings per share from Apollo Education Group, and 26 cents fourth-quarter earnings per share from the University of Phoenix Online. Apollo also sees consolidated fourth-quarter revenue of $365 million to $368 million. S&P reiterates accumulate.

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