BearingPoint Falls

Rambus climbs; Arvinmeritor drops; plus more of today's stocks in the news

In a 10-K, BearingPoint's (BE ) auditor PriceWaterhouseCoopers identified "material weaknesses" in BearingPoint's accounting for fiscal 2003. Sanford Bernstein remains cautious on BearingPoint's near-term fundamental prospects.

B. Riley says Rambus ' (RMBS ) stock is higher on the news that the U.S. Supreme Court released a preliminary list of cases it will hear this session that did not include an appeal from Infineon in a patent infringement lawsuit against Rambus.

Arvinmeritor (ARM ) sees 48 cents to 51 cents fourth-quarter earnings per share, resulting in $2.00 to $2.03 fiscal 2004 earnings per share (before the cumulative effect of a change in an accounting principal). The auto parts maker cited higher costs for product launches, and steel-related interruptions in its LVS business.

Oxigene (OXGN ) initiated a Phase I/II combination trial of its lead anti-cancer agent, Combretastatin A4 Prodrug (CA4P) and the iodine-labeled antibody A5B7, in patients with advanced colorectal cancer; CA4P is now involved in five trials.

IBM Corp, (IBM ) is touting a new chip design it says will improve the performance of wireless devices four times and reduce power consumption by up to 80%.

Wal-Mart (WMT ) reaffirmed the 45 cents to 47 cents third-quarter earnings per share from continuing operations. The world's largest discount chain plans to open 50 to 55 new discount stores, and 220 to 230 new Supercenters. Also, Wal-Mart reached an agreement with 43 U.S. states, including California, to adopt new procedures to reduce sales of cigarettes and other tobacco products to minors, according to Reuters.

Trex (TWP ), a maker of non-wood decking products, sees lower-than-expected $1.40 to $1.43 2003 earnings per share on $185 million to $190 million revenue. Trex cited poor weather conditions and the rising cost of plastic raw materials.

An affiliate of Fairmont Capital will acquire Garden Fresh Restaurants (LTUS ). Terms: $16.35 per Garden Fresh share.

Banc of America believes order trends at LSI Logic (LSI ) have weakened recently, and cut uts estimate. BofA rates the shares as sell.

Merrill Lynch resumed coverage of Williams Companies (WMB ) with buy.

Enterasys Networks (ETS ) expects an 8% to 13% third-quarter sequential revenue decline, citing customer's delay in purchasing decisions. CE Unterberg downgraded to near-term market perform.

Regeneration Technologies (RTIX ), a maker of human tissue replacements, cut the third-quarter net revenue guidance to about $20 million, citing lower orders for its spinal implants. Regeneration withdrew its 2003 guidance. Pacific Growth put its model under review.

Technology-services provider Sypris Solutions (SYPR ) sees 3 cents to 4 cents third-quarter earnings per share, vs. the previous guidance of 20 cents to 23 cents, on revenue of $66 million to $68 million. Sypris cited shipment delays, inventory rebalancing, program changes, and higher costs. AG Edwards and Needham downgraded.

Wedbush Morgan upgraded Bebe Stores (BEBE ) to buy from hold.

Goldman reportedly says Sun Microsystem's earnings warning may indicate a headwind for Benchmark Electronics (BHE ) and Celestica (CLS ).

Emmis Communications (EMMS ) rose. The company posted 14 cents second-quarter earnings per share, vs. a 13 cents loss, on a 7% net revenue rise, beating expectations. Emmis sees $157.8 million to $160.2 million third-quarter net revenue, and $593.1 million to $598 million in fiscal 2004. S&P keeps its hold opinion.

Alliance Capital Management (AC ) sank. The company says based on preliminary results of its own ongoing internal investigation concerning mutual fund transactions, it has identified conflicts of interest in connection with certain market timing transactions. Alliance suspended two staffers, including a fund manager. S&P keeps its hold opinion.

KLM Royal Dutch (KLM ) rose. The airline agreed to an exchange offer with Air France, which will create a new company to be called Air France-KLM.

Sun Microsystems (SUNW ) sees a 7 cents to 10 cents first-quarter loss per share, and will take a $1.05 billion fourth-quarter fiscal 2003 non-cash accounting charge. Bear Stearns downgraded to underperform. S&P keeps its hold opinion.

Roadway (ROAD ) posted 71 cents third-quarter earnings per share (excluding charges for the pending acquisition of Roadway by Yellow Corp.), vs. 36 cents earnings per share, on 10% revenue rise. The trucking company maintained the $2.36 to $2.60 2003 earnings per share from continuing operations (excluding acquisition charges) guidance. S&P keeps its hold opinion.

Pepsi Bottling (PBG ) posted 67 cents, vs. 61 cents, third-quarter earnings per share on a 14% net revenue rise. It sees $1.55 to $1.57 2003 earnings per share (before an accounting change).

Harris (HRS ) sees 37 cents to 38 cents first-quarter earnings per share, vs. a year ago's 30 cents, on revenue of $540 million to $550 million. Harris cited stronger-than-expected performance in the government segment businesses. Oppenheimer raised its estimates and target. S&P keeps its hold opinion.

Midwest Express (MEH ) plans to sell $25 million in convertible senior secured notes, and $8 million in stock, as part of an agreement under which it expects to raise financing of about $33 million (net proceeds of about $30.5 million).

Safeco (SAFC ) plans to sell its Life & Investments unit. The company increased its loss reserves, and allocated loss adjustment expense reserves by $180 million pretax ($117 million after taxes). Safeco says these reserves relate directly to settling and defending claims. S&P keeps its hold opinion.

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