Markets & Finance

Revenue Gain Steers Carnival Higher


Carnival Corp. (CCL) posted $0.32 vs. $0.34 Q2 EPS as higher losses from investment, and an absence of gains, offset a 23% revenue rise. Carnival says while net revenue yields are expected to be down in the second half, the consensus 2001 EPS estimates are reasonable.

PPL Corp. (PPL) notes in Q2 2000, the company booked about $0.17 per share from emission allowance sales, which will not be repeated this year. Therefore it is possible that Q2 EPS may be lower than the $0.77 consensus.

American Tower (AMT) sees a wider-than-expected Q2 loss

of $0.52-$0.58, a Q3 loss of $0.42-$0.52, and a 4Q loss of

$0.43-$0.54. The company also sees a 2001 loss of $2.03-$1.77, citing weakness at its Verestar division.

CS First Boston is positive on Symantec Corp. (SYMC) following a meeting with the CEO.

First Union downgraded Digex (DIGX) to market perform. Merrill reportedly downgraded the stock, and UBS Warburg cut the target.

Countrywide Credit (CCR) posted $1.00 vs. $0.72 Q1 EPS and raised the Q2 guidance. S&P upgraded to accumulate from hold.

Morgan Stanley (MWD) posted better than expected $0.82 vs. $1.26 Q2 EPS on 15% lower net revenue. S&P maintains accumulate.

Micrel (MCRL) expects Q2 revenue to be 35%-39% sequentially lower, excluding the recent Kendin acquisition, and net income to be breakeven to slightly positive. The company cites a continued slowdown in new order rates.

Winnebago Industries (WGO) posted better than expected $0.60 vs. $0.74 Q3 EPS on 8.0% lower revenues. CIBC World reiterates buy.

Kaufman Bros. reportedly upgraded Global Crossing (GX) to buy from accumulate.

Sherwin-Williams (SHW) sees lower than expected $0.55-$0.60 Q2 EPS. The company cites lower than expected sales that were impacted by weak economies and unfavorable currency exchange rates.

Lehman initiated coverage of Avici Systems (AVCI) with buy.

Eastman Kodak (EK) postponed Thursday's planned debt sale as a result of an anticipated bankruptcy filing by a customer, which will result in Kodak taking a $75M Q2 charge. The company reiterates $1.00-$1.30 Q2 EPS guidance.

A group led by entrepreneur Sam Wyly will begin a proxy fight to take control of Computer Associates (CA), an plans to split the company into four divisions, which might eventually be spun off: The Wall Street Journal.

Exodus (EXDS) sees lower than expected $315M Q2 revenues due to a decrease in new customer installations, and an increase in cancellations. Exodus now expects EBITDA to be slightly negative from Q1, with a cash net loss of $140M. Salomon SB, Goldman, and Lehman downgraded the shares.

Avnet (AVT) sees Q2 EPS in range of breakeven to a few cents positive on sales 25%-30% below Q3 levels. Avnet will take a $275M charge S&P maintains hold.

Sanmina (SANM) sees $0.10 Q3 EPS on $760M-$775M revenues, citing continued slowdown in its end-markets S&P maintains hold. CIBC World and Dain Rauscher downgraded the shares. CS First Boston and Banc of America cut estimates.

PSI Technologies (PSIT) sees $12M-$13M Q2 revenues, and says the telecom and networking

markets remain soft.

Verity (VRTY) sees $0.11-$0.14 Q1 EPS on a 9%-15% sales rise, and sees fiscal 2002 revenues rising in the 25%-30% range Verity posted $0.25 vs. $0.39 Q4 EPS as a higher income-tax provision offset a

36% revenue rise.

Avery Dennison (AVY) sees Q2 revenues about 5% below previously announced expectations, and sees $0.60-$0.64 EPS vs. previous $0.68-$0.72 guidance.

Transmeta (TMTA) sees Q2 revenues 40%-45% below 1Q's $18.6M level, citing a reduction in unit volume shipments and economic weakness in Japan. Banc of America and Merrill downgraded the shares. Salomon SB cut estimates.

Catalina Marketing (POS) sees $0.13-$0.15 Q1EPS on revenues approximating year-ago levels, citing reduced spending by manufacturer clients.

Heidrick & Struggles International (HSII) will cut 13% of workforce. As result, the company will take a majority of a $9M-$10M charge in 2Q, and take the remainder in subsequent several quarters.

National Dentex Corp. (NADX) sees lower-than-expected Q2 EPS of about $0.50, citing a slowdown in dental lab sales.

Corixa (CRXA) says given the results of a data sweep associated with the trial of its Melacine vaccine for Stage II melanoma, the company has begun talks with the FDA regarding filing for accelerated approval for certain patients.

Concord EFS (CEFT) offered 22.5M shares at $49.50 per share.


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