Markets & Finance

Key Callaway Exec Won't Stay the Course


Chuck Yash resigned as senior executive vice president and board member at Callaway Golf (ELY). Wells Fargo reportedly downgraded to market perform from buy.

Advanced Micro (AMD) reiterates previous expectations

that it will achieve modest revenue growth in 2001. S&P maintains hold.

Gap Inc. (GPS

)posted 10% lower May same-store sales, and 10% higher total sales. Given its performance in May, Gap expects Q2 comps to be worse than the negative mid-single-digit guidance previously given.

BMC Industries (BMM) sees $0.09-$0.12 Q2 EPS on $80M-$85M revenues vs. $0.20 on $94M revenues from a year ago. BMC says its business still is impacted by the slowing global economy, and similar external market factors were felt in Q1.

Hamilton Bancorp. (HABKE) hired CIBC World Markets to explore alternatives to enhance the company's shareholder value.

Conductus (CDTS ) received a follow-on deployment order for its multiple ClearSite systems from a leading U.S. wireless carrier.

An FDA committee voted that Orphan Medical 's ( ORPH ) Xyrem is an effective treatment for cataplexy associated with narcolepsy. Washington Analysis says the endorsement is not ringing.

Omnivision Technology (OVTI ) posted breakeven Q4 vs. $0.10 EPS

on a 38% revenue decline. Needham upgraded to buy from

hold.

Quiksilver ( ZQK) posted $0.58 vs. $0.49 Q2 EPS on an 18% sales rise. Merrill upgraded to near-term and long-term buy. Wedbush Morgan reiterates buy.

American Eagle (AEOS ) posted flat May U.S. same store

sales, and a 30% total sales rise. Wells Fargo downgraded

to market perform from buy. S&P maintains accumulate.

Abercrombie & Fitch (ANF ) posted 2% May same-store sales decline, and 25% higher total sales.

Network Six (NWSS ) agreed to be acquired by TRW Inc. (TRW) for $3.60 cash per share.

Myers Industries (MYE ) says a continued slump in automotive, recreational vehicle, truck markets, and automotive aftermarket will cause Q2 sales and EPS to fall "far short" of last year's levels.

DTM Corp. (DTMC ) and 3D Systems announced that the Justice

Dept. has filed a civil action suit to permamently enjoin

3D System's acquisition of DTM.

CS First Boston downgraded Korn/Ferry International (KFY ) to hold from buy.

Federated Department Stores ( FD) posted 3.3% lower May comp-store sales and says unless May sales trend reverses, Q2 EPS could be below prior guidance.

Pacific Sunwear (PSUN ) posted a 9.8% May same store sales decline, and a 10% total sales rise. The retailer sees $0.13-$0.17 Q2 EPS. Raymond James will reportedly cut estimates.

Philip Morris (MO) was ordered to pay over $3B to a 56-year-old man with lung cancer, by far the largest damage award ever in case by an individual against a cigarette maker, according to a press report. S&P downgraded to accumulate. Goldman reiterates recommended list.

Wells Fargo ( WFC) sees Q2 after-tax charges of $0.65, mostly due to impairment write-downs of publicly traded, private equity securities. S&P cut the 2001 estimate, and maintains hold.

Merrill and DB Alex, Brown downgraded Gillette (G ). S&P keeps hold. Wednesday at a media event, management acknowledged Gillette's "chronic underachievement," and set initiatives to improve performance.

Covenant Transport (CVTI) sees $0.02-$0.05 Q2 EPS vs. consensus estimate of $0.19, citing a weak economy and high fuel prices. CS First Boston downgrades to hold from buy.

Broadcom ( BRCM ) cut the Q2 revenue guidance to 32%-35% sequential decline, and will implement cost cutting initiative, including a workforce reduction that will result in a Q2 charge.

American Eagle ( AEOS) posted flat May U.S. same store sales and 30% total sales rise.

Swift Transport (SWFT) expects Q2 EPS to fall short of consensus estimate of $0.16, and says freight demand is still soft.

Carreker Corp. ( CANI) posted $0.06 vs. $0.08 Q1 EPS as higher costs and more shares offset a 15% revenue rise. Carreker closed its Check Solutions acquisition and ups the fiscal 2002 estimates to $175M revenues and $0.95 EPS from operations. The company sees $245M fiscal 2003 revenue, and $1.33 EPS. UBS

Piper initiates coverage with buy.

Talbots (TLB) posted slight May same store sales decline, and 10% total sales rise. Due to better than expected May results, Talbot's sees $0.25-$0.27 Q2 EPS.

Eircom ( EIR) says separate approaches have been received from buyout firm Kohlberg Kravis Roberts, on behalf of new entity or entities to be formed by it amd Blackstone Communication Managemeent, which may or may not lead to an offer for the entire share capital of Eircom.

AnnTaylor ( ANN ) posted 9.6% May same store sales decline, and a 4.1% total sales rise. AnnTaylor now sees a 5%-7% Q2 same store sales decline, and reiterates $0.28-$0.32 Q2 EPS guidance.

Gemplus International (GEMP ) sees Q2 revenue 4% below year ago levels, and anoperating loss of 10M-15M euro. Gempplus cited the slowdown in GSM subscriber growth, and inventory issues at operators.

Costco Wholesale (COST ) posted 6% higher May same store sales, and a 14% total sales rise.

Pier 1 Imports (PIR ) posted 4.8% higher May same store sales, and a 10% total sales rise.

Stratos Lightwave (STLW ) posted breakeven Q4 vs. $0.02 EPS (pro forma) despite a 13% revenue rise, and believes Q1 sales will be consistent with Q4 levels.

Guess Inc. ( GES) posted 15.4% lower May same store sales, and

flat total sales.

Penn Engineering (PNN) expects Q2 revenue to be about 13% less than year ago, and sees Q3 revenue to be about 28%-32% lower.

The Limited ( LTD ) posted 6% May same store sales decline, and a 5% total sales decline.


Steve Ballmer, Power Forward
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