Markets & Finance

Tellabs Sinks Amid Analysts' Concerns


Tellabs (TLAB) cut Q2 guidance to breakeven net (from operations) on sales of about $500M. CS First Boston downgraded to hold from buy. S&P downgraded to hold. Merrill and DB Alex. Brown also downgraded.

S&P tied weakness in Shaw Group (SGR) to rumors of accounting issues. S&P believes the rumors are unfounded, and maintains accumulate.

First Albany upgraded Professional Detailing (PDII) to strong buy from buy on valuation and industry opportunity.

Veritas Software (VRTS) and Sun Microsystems (SUNW ) jointly announced a turnkey network attached storage (NAS) solution to be marketed though two Sun IForce channel partners. CS First Boston reiterates strong buy.

Morgan Stanley downgraded Qwest Communications (Q) to neutral from outperform. On Tuesday the company reiterated guidance for 12%-13% Q2 revenue growth.

Late Tuesday Merrill downgraded Exodus Communications (EXDS) to near-term neutral and long-term neutral from buy. Shares are trading lower.

Triquint Semiconductor (TQNT) reiterates Q2 guidance of $0.03 EPS, and $60M-$65M revenues. Merrill reiterates near-term accumulate. Dain Rauscher reiterates buy. CS First Boston reiterates hold.

Kansas City So. (KSU) says it will no longer pursue offerings of stock and mandatory convertible units.

Genentech returned the rights to Inspire Pharmaceutical's (ISPH) respiratory programs in chronic bronchitis, cystic fibrosis, sinusitis to Inspire as part of a review of Genentech's development portfolio.

Pacific Growth downgraded Keithley Instruments (KEI) to neutral from buy.

Potash Corp. (POT) says Q2 EPS will likely be 15% lower than the previous guidance of about $1.00.

Morgan Stanley, Goldman, and ABN Amro downgraded Atlas Air World (CGO). On Tuesday Atlas forecast breakeven Q2 and $0.90-$1.10 2001 EPS from operations.

Rohm & Haas (ROH) sees Q2 operating EPS of $0.27-$0.29 vs. a year ago's $0.42. Salomon SB upgraded to outperform from buy. S&P maintains hold.

Exactech Inc. (EXAC) sees $0.06-$0.08 Q2 EPS, and $0.13-$0.15 for Q3. Fahnestock downgraded to hold.

Colonial Bancgroup (CNB) will be added to the S&P MidCap 400 after the close of trading on June 22. replacing Zions.

As a result of continuing weakness in the U.S. economy and

near record high fuel prices, Northwest Airlines (NWAC) expects a Q2 loss of

$50M-$75M.

UAL Corp. (UAL) expects to post double-digit decline in unit revenue in Q2, reflecting the industry-wide effects of the weakening U.S. economy.

Jabil Circuit (JBL) posted $0.16 vs. $0.21 Q3 cash EPS as lower gross profit offset a 8.3% revenue rise. Jabil sees $0.13-$0.15 Q4 cash EPS on $950M-$1.05B revenue. S&P maintains hold. CIBC World, CS First Boston, Bear Stearns and Lehman cut estimates.

Teradyne (TER) cut Q2 guidance to revenue of $350M-$375M, on a loss of

$0.05-$0.10, including a benefit from the pending sale of

military connections business. Goldman cut estimates, and

says the stock looks expensive. S&P downgraded to avoid from hold.

Red Hat Inc. (RHAT) posted breakeven Q1 vs. an $0.02 loss on a 18% revenue rise. WR Hambrecht downgraded to neutral from buy, saying the company is unable to reiterate previous fiscal 2002 guidance.

Asyst Technology (ASYT ) cut Q1 revenue guidance from about $75M to $65M- $70M, citing a continuing slowdown in demand across

the semiconductor industry. Tucker Anthony cut estimates and

target; reiterates market underperform.

Lennar Corp. ( LEN ) posted $1.40 vs. $0.64 Q2 EPS on a 44% revenue rise and raised the 2001 EPS estimate to $5.25 from $4.70; sees $6.00 for 2002. S&P maintains buy.

American Management System (AMSY) sees lower than expected $0.30-$0.34 Q2 EPS from operations on revenues of $319M-325M. S&P maintains hold. JP Morgan downgraded.

UStarcom Inc. (UTSI ) filed to offer 9 million shares.

Infineon Technology (IFX) sees up to a 30% sequential revenue decline, and up to EUR 600M loss (before interest, income taxes), citing

price erosion and one-time charges from inventory write downs.


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