Motorola Slips

UTStarcom falls; Cisco drops; plus more of Wednesday's stocks in the news

Motorola (MOT ) is seen lower on reports it owes an additional $500 million in taxes following an IRS examination of tax returns for 1996-2000.

UTStarcom (UTSI ) filed with the SEC for a five-day extension to file its second-quarter 10-Q. S&P downgraded to hold from accumulate.

Cisco Systems (CSCO ) posted 20 cents, vs. 14 cents fourth-quarter earnings per share (GAAP) on a 26% net sales rise. S&P downgraded to accumulate from buy. Merrill Lynch, S&P, and JP Morgan downgraded the stock.

Disney (DIS ) posted 29 cents, vs. 24 cents third-quarter earnings per share on a 17% revenue rise. Disney says it's on track to deliver 50%-plus earnings growth in fiscal 2004. S&P reiterates hold.

Computer Sciences (CSC ) posted 58 cents, vs. 49 cents first-quarter earnings per share on a 5.1% revenue rise. It sees second-quarter revenue growth of 7% to 9%, and is comfortable with the 63 cents to 68 cents earnings per share guidance. Computer Science expects $16.25 billion in fiscal 2005 revenues, and $3.10 to $3.20 earnings per share.

National Semiconductor (NSM ) sees a first-quarter sequential revenue decline of 4% to 5%, vs. its previous guidance of flat to up 3%. Citigroup downgraded to hold from buy. S&P cut to avoid.

Citigroup reportedly downgraded Cypress Semiconductor (CY ) to hold from buy.

Federated Department Stores (FD ) posted 63 cents, vs. 64 cents second-quarter earnings per share (excluding items) despite a 3.3% net sales rise. Federated sees 35 cents to 40 cents third-quarter earnings per share, and $2.45 to $2.55 in the fourth quarter. It sees a 3% to 4% fiscal 2005 sames-store sales rise, and now sees fiscal 2005 earnings per share of $3.70 to $3.80.

Abercrombie & Fitch (ANF ) posted 44 cents, vs. 35 cents second-quarter earnings per share as widened gross margin offset a 5% same-store sales decline. The retailer posted a 13% net sales rise, and sees third-quarter earnings per share similar to a year ago's third-quarter. Piper Jaffray cut to market perform.

Brinker International (EAT ) posted 67 cents, vs. 40 cents fourth-quarter earnings per share (GAAP) on 16% higher revenues. Brinker cut its $2.28 to $2.38 fiscal 2005 earnings per share guidance to $2.18 to $2.30, citing worse-than-expected sales trends. It sees 45 cents to 47 cents first-quarter earnings per share, including a 3-cent gain.

Dow Jones (DJ ) says advertising linage at The Wall Street Journal's U.S. edition fell 7.9% in July, or 3.5% on a per-issue basis. In the general advertising category at the The Wall Street Journal, July linage fell 5.2%, mainly on drops in auto and travel ads.

CS First Boston downgraded Teradyne (TER ) to netural from outperform, and cut the $25 target to $15.

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