Nucor Issues Upbeat Outlook

Nike posts higher net; Adobe profit climbs; plus more of today's stocks in the news

Adobe Systems (ADBE ) posted first quarter earnings per share (GAAP) of 50 cents, vs. 23 cents one year earlier, on a 43% revenue rise. The company sees earnings per share (GAAP and non-GAAP) of 33 cents to 39 cents in the second quarter and $1.40 to $1.46 for all of fiscal 2004. It raised its $1.425 billion fiscal 2004 revenue guidance to $1.475 billion to $1.5 billion. S&P reiterates buy. Prudential upgraded the shares.

PalmSource (PSRC ) posted third quarter earnings per share of 5 cents, vs. 7 cents, on an 18% total revenue decline. It sees a $4 million to $7 million fourth quarter loss (GAAP).

AMR Corp. (AMR ) was among the airline stocks trading lower on Friday. Bear Stearns cut its estimates on certain airlines, including AMR. The company was unavailable for comment.

Paychex (PAYX ) posted third quarter earnings per share of 21 cents, vs. 19 cents, on a 19% revenue rise. Paychex expects 16% to 18% total revenue growth for fiscal 2004, and net income growth of 8% to 10%. S&P maintains hold.

Nucor (NUE ) sees first quarter earnings per share of 80 cents to $1.00. The steelmaker cites strong pricing across all product lines accompanied by increased demand; decreased pre-operating and start-up costs have increased EPS expectations. S&P reiterates buy.

Solectron (SLR ) reported a second quarter loss per share from continuing operations (GAAP basis) of 11 cents vs. a 13-cent loss on a 22% sales rise. Solectron sees third quarter results ranging from a 2-cent loss to earnings per share of 1 cent from continuing operations (pro forma). S&P keeps hold; CIBC World keeps sector underperform.

Merrill Lynch, Deutsche Bank, and BB&T each downgraded Swift Transportation (SWFT ). After Swift's Thursday conference call, Merrill notes the crux of EPS disappointment appears to be the companys inability to fill all of its tractors with drivers.

RF Monolithics (RFMI ) posted second quarter earnings per share of 6 cents, vs. one cent, on an 8.7% sales rise. RF expects 10% to 12% third quarter sequential sales growth.

Tektronix (TEK ) posted third quarter earnings per share from operations of 33 cents, vs. 13 cents, on a 30% sales rise. It sees fourth quarter earnings per share of 24 cents to 28 cents on $230 million to $240 million in sales.

Lattice Semiconductor (LSCC ) delayed its earnings release, as it has not completed its deferred income accounting review. Lattice anticipates restatement of first quarter through third quarter 2003 financial results, and a reduction of 2003 year to date revenue of about $10 million to $11 million. JP Morgan reportedly downgrades.

Nike (NKE ) posted third quarter earnings per share of 74 cents vs. 57 cents on 21% revenue rise.

As Time Warner (TWX ) mulls what to do with its America Online division, a potential buyer on the minds of the company's executives is tech giant Microsoft (MSFT ), according to a New York Post article.

Scwab SoundView upgraded Lucent Technologies (LU ) to outperperform from neutral.

Marathon Oil (MRO ) will acquire Ashland's (ASH ) 38% interest in Marathon Ashland Petroleum LLC in a $2.93 billion deal. Marathon will become sole owner of the company.

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