business

Tyco Posts Lower Earnings

GE receivs subpoena from the SEC; OfficeMax to establish a $9.8 million legal reserve; plus more of Tuesday's stocks in the news

Tyco International (TYC ) posted 11 cents, vs. 37 cents second-quarter GAAP earnings per share from continuing operations on a 6.5% revenue rise, which includes charges totaling 37 cents. It sees 47 cents to 49 cents third-quarter earnings per share from continuing operations, and $1.88 to $1.93 fiscal 2005, a reduction of the high-end of guidance range.

General Electric (GE ) receives a subpoena from the SEC seeking documents relating to "certain loss mitigation insurance products".

OfficeMax (OMX ) says it will establish an additional legal reserve of $9.8 million, pre-tax, in its first-quarter 10-Q, which is not reflected in its first-quarter report. The company's legal reserve relates to an ongoing dispute originating in 2003.

St. Paul Travelers (STA ) posted $1.25, vs. $1.31 first-quarter earnings per share from continuing operations despite a 48% revenue rise.

Wireless medical imaging company Given Imaging (GIVN ) posted 4 cents first-quarter earnings per share, vs. a 2-cent loss on a 73% sales rise. It sees 6 cents to 10 cents second-quarter earnings per share on $22 million to $24 million sales. The company cites an increase in new product development costs, expansion of U.S. sales, marketing activities, and an expected Japan launch.

EMC Corp. (EMC ) inks a deal with Hewlett-Packard (HPQ ) to dismiss all claims and counterclaims with respect to patent dispute. As part of the deal, HP will pay a $325 million (net) payment to EMC. S&P reiterates strong buy on EMC.

Macrovision (MVSN ) posted 11 cents, vs. 21 cents first-quarter earnings per share (GAAP) as charges related to write down offset a 35% revenue rise. The company sees 15 cents to 17 cents second-quarter earnings per share (pro forma) on revenue of $47 million to $49 million.

Career Education (CECO ) posted 53 cents, vs. 37 cents first-quarter earnings per share on a 29% revenue rise. The company posted 59 cents first-quarter earnings per share from continuing operations. It sees 47 cents second-quarter earnings per share on revenue of $510 million and $2.29 2005 earnings per share on revenue of $2.125 billion.

Haverty Furniture (HVT ) posted 14 cents, vs. 26 cents first-quarter earnings per share despite a 4.7% higher same-store sales and 9% higher total sales. Based on a review of lease accounting practices, it will restate certain past financial results.

Caremark Rx (CMX ) posted 43 cents, vs. 29 cents first-quarter earnings per share on sharply higher revenues. It raises $1.88 to $1.92 2005 operating earnings per share guidance to $1.92 to $1.94.

Generic drug company Teva Pharmaceutical Industries (TEVA ) posted 38 cents first-quarter earnings per share, vs. a 72-cent loss on a 24% sales rise. It notes there are fewer generic product opportunities this year in the U.S.

Electronic Data Systems (EDS ) posted 1-cent first-quarter earnings per share (GAAP), vs. a 2-cent loss despite a 4.9% revenue decline. It sees 40 cents to 50 cents 2005 earnings per share (pro forma) on $20 billion to $21 billion in revenue.

SRA International (SRX ) posted 52 cents, vs. 37 cents third-quarter earnings per share on a 41% revenue rise. It sees 51 cents to 53 cents fourth-quarter earnings per share. The company sets a 2-for-1 stock split.

Goodrich Petroleum (GDP ) expects to "mark to market" fair value of its natural gas hedging liability. It expects change in the fair value of natural gas hedges in place will be $10.5 million, which will be taken as a non-cash unrealized loss in the first quarter.

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