|
|
Get Four
|  | JULY 16, 2004 04:23 PM
 MARKET MOVERS Martha Stewart Living Shares Jump Netflix plunges; Boston Scientific drops on recall news; plus more of Friday's stocks in the news Martha Stewart, the founder and former CEO of Martha Stewart Living Omnimedia (MSO ), was sentenced to five months in prison and two years of probation, and was levied a $30,000 fine, for lying about a stock sale. Shares of MSO moved sharply higher as the sentence was below the maximum Stewart could have received. Boston Scientific (BSX ) shares fell sharply after the company said it is expanding its voluntarily worldwide recall to include certain additional units of its TAXUS Express 2 Paclitaxel-Eluting Coronary Stent Systems; the recall will impact second-quarter financial results, which were postponed. Netflix (NFLX ) posted 4 cents, vs. 5 cents second-quarter EPS (GAAP) as higher cost of stock-based compensation offset a 90% revenue rise. NetFlix sees GAAP net income of $6.7 million to $10.2 million for the third quarter, and $8.8 million to $14.8 million for the fourth quarter. The video-rental company upped the $10.5 million to $18.5 million 2004 estimate to $12.6 million to $22.1 million. S&P upgraded to accumulate. WR Hambrecht and Roth Capital downgraded the shares. Hot Topic (HOTT ) sees July same-store sales down 6% to 8% vs. a year ago. The retailer cut the EPS and sales guidance for the remainder of fiscal 2005. It now forecasts 30 cents to 33 cents third-quarter EPS, and 49 cents to 52 cents fourth-quarter EPS. S&P and Wedbush Morgan cut their estimates. Bear Stearns downgraded to peer perform. Six Flags (PKS ) says year-to-date through June 30, park level revenues trailed the prior year by about 0.9%, system-wide attendance decreased 4.1%; results for the six months ended June 30 are now expected to reflect revenues of about $400 million to $402 million. Ths shares fell sharply. Medical-products maker Stryker (SYK ) posted 37 cents, vs. 26 cents second-quarter EPS on a 17% revenue rise. Banc of America downgraded to neutral from buy. Wells Fargo reportedly downgraded to hold from buy. Zimmer Holdings (ZMH ) is lower in sympathy with Stryker. S&P downgraded Zimmer to accumulate from buy. J.B. Hunt (JBHT ) posted 55 cents, vs. 31 cents second-quarter EPS on 13% higher total operating revenue. Bear Stearns raised its estimates. Resources Connection (RECN ) posted 43 cents, vs. 18 cents fourth-quarter EPS on an 81% revenue rise. CS First Boston upgraded to outperform from neutral. CIBC World raised its estimates and target. Dell (DELL ) raised the second-quarter EPS guidance to 31 cents and maintains the $11.7 billion revenue outlook. The computer maker notes higher operating profitability is expected to produce EPS of 30 cents; the balance of the guidance increase is due to a decline in the global tax rate. S&P keeps accumulate. WR Hambrecht raised its estimate on Rambus (RMBS ). The chip designer posted 8 cents, vs. 4 cents second-quarter EPS on 20% higher revenues. IBM Corp. (IBM ) posted $1.16, vs. 97 cents second-quarter EPS (including items) on 7% higher revenue. Outback Steakhouse (OSI ) says analysts' second-quarter EPS estimates are about 10% higher than it anticipates reporting, and says analysts haven't factored in lower-than-expected same-store sales growth and higher commodity costs. Prudential downgraded to neutral. Riggs National (RIGS ) agreed to be acquired by PNC Financial Services (PNC ) in a $779 million deal. Terms: Riggs shareholders can elect to receive $24.25 in either cash or PNC stock. Separately, PNC forecasted $1.07 2004 EPS, primarily driven by improvements in noninterest income and lower credit costs. Biosite (BSTE ) raised the 46 cents to 55 cents second-quarter EPS guidance to 57 cents to 62 cents, and upped the $53 million to $58 million revenue guidance to about $60 million, citing continued success in defending its Triage BNP test franchise and improved margins. PMC-Sierra (PMCS ) posted 8 cents second-quarter EPS, vs. a 5-cent loss (GAAP) on a 42% revenue rise.  All of the views expressed in this research report accurately reflect the research analyst's personal views regarding any and all of the subject securities or issuers. No part of analyst compensation was, is or will be, directly or indirectly related to the specific recommendations or views expressed in this research report. Standard & Poor's Regulatory Disclosure Any advice, analysis, or recommendations contained in articles labeled "Insight from Standard & Poor's" reflect the views of Standard & Poor's, which operates separately from and independently of BusinessWeek Online. It is possible that BWOL may from time to time publish information that is not consistent with advice, analysis, or recommendations that are published by Standard & Poor's. Standard & Poor's and BusinessWeek Online are each units of The McGraw-Hill Companies, Inc.
BW MALL
SPONSORED LINKS
Get BusinessWeek directly on your desktop with our RSS feeds.
Buy a link now! Add BusinessWeek news to your Web site with our headline feed. Click to buy an e-print or reprint of a BusinessWeek or BusinessWeek Online story or video. To subscribe online to BusinessWeek magazine, please click here. Learn more, go to the BusinessWeekOnline home page  | | |
 Copyright 2004, by The McGraw-Hill Companies Inc. All rights reserved.Terms of Use | Privacy Notice |
Printer-Friendly Version
