Markets & Finance

Hollywood Entertainment Lifts Guidance on Stronger Sales


Talx Corp. (TALX) sees $0.10-$0.12 Q2 EPS on revenue of $11.4M-$11.7M, citing the weak performance from its outsourced benefits enrollment business. RW Baird downgraded to market perform.

Overland Data (OVRL) sees better than expected $0.07-$0.09 Q1 EPS on revenue of $39M. Needham reiterates buy and the $11 target.

Gilead Science (GILD) was halted, with news pending. Washington Analysis says according to FDA review documents released Tuesday morning, data submitted by Gilead for Viread (for HIV) provided clear evidence of antiviral activity.

UBS Warburg downgraded Baxter International (BAX) and Johnson & Johnson (JNJ) to hold from strong buy.

Banc of America downgraded Qwest Communications (Q) to buy from strong buy. On Tuesday the company announced reorganization of its business markets unit.

SmartForce (SMTF) sees $0.08 Q3 EPS on $68M revenues, in line with previous guidance. Banc of America downgraded on overall investment market woes, and the murky 2002 outlook.

Hollywood Entertainment (HLYW) raised Q3 EPS (pro forma) guidance

to $0.15-$0.17 from $0.08-$0.10 due to better than expected 11% rise in Q3 same store sales, and raised Q4 same store sales guidance to a 6%-7% rise.

QLT Inc. (QLTI) expects Visudyne sales in Q3 to be about 6%-10% lower than the consensus estimate of $63M. DB Alex Brown downgraded to market perform from buy.

Amarin Corp. (AMRN) achieved operating cash flow of $10.4M for the 12 months ended June 30, substantially exceeding its $5.5M target associated with its private equity placement conducted in Q2.

Goldman added Skywest (SKYW) to its recommended list; it was rated market outperform.

Cable Design (CDT) posted $0.12 vs. $0.39 Q4 EPS from operations on 28% sales decline. Prior to the Sept. 11 events, the company forecast $0.09 to $0.13 EPS. Due to these events, it is too early to provide new Q1 and fiscal 2002 guidance.

Peoples Financial (PFFC) agreed to be acquired by National Bancshares for $12.25 cash per share.

For Sept. 2001, Continental Airlines (CAL) reported a 31% decrease in traffic, and a 19% capacity decrease. Notes revenue per available seat-mile decreased 9%-11% during Sept. 1 to Sept. 10, while the decline during Sept. 11 to Sept. 30 is estimated to be 33%-37%.

Stein-Mart (SMRT) posted preliminary 4% Q3 same store sales decline, $280M Q3 total sales, well below revised estimates. The company sees about $0.20 Q3 loss, and is likely to adjust Q4 earnings estimates downward.

Compaq Computer (CPQ) sees a $0.05-$0.07 Q3 loss from operations on lower than expected $7.4B-$7.5B revenue, citing the increased speed of economic downturn worsened by the Sept. 11 events. USB Piper cut estimates. S&P keeps hold.

Mercury Interactive (MERQ) sees $0.10-$0.12 Q3 EPS (pro forma) on sales of $82M-$84M, citing continued economic deterioration, and recent tragic events of Sept. 11. S&P maintains buy.

Robertson Stephens cut Microsoft (MSFT) fiscal 2002, fiscal 2003 estimates.

Robert Mondavi (MOND) sees $0.45-$0.50 Q1 EPS (adjusted) from operations, expects fiscal 2002 EPS from operations to be 10%-20% below prior year's $2.95. The company will take $16M-$17M one-time charge as it streamlines operations due to slowing economy, and the effect of Sept. 11 events.

Abercrombie & Fitch (ANF) expects Q3 EPS to be about flat with year ago's $0.43 on lower than expected September same store sales, and says if current sales trends continue through Christmas it

will be very difficult to match last year's Q4 EPS.

McGraw-Hill (MHP) sees a lower than expcted Q3 EPS growth of 13%-15% on 8%-10% revenue rise. For 2001, the publishing company sees 6%-8% EPS growth, citing growing economic weakness, exacerbated by the terrorist attacks.

Robert Half (RHI) sees $0.12-$0.13 Q3 EPS on revenue of $555M-$570M. The company says it will not be in a position to announce new 2001 guidance until more information is available on the ongoing economic impact of terrorist attacks.

Valuevision (VVTV) says for seven days beginning Sept. 11 through Sept. 17, orders were down 21% vs. prior year. Valuevision says there will be impact on Q3 results.

Olin Corp. (OLN) sees a $0.05 Q3 loss from operations. Olin does not expect to see any improvement in its operating results for Q4 because of continuing weak economic conditions.

Havas Advertising (HADV) posted EUR 70M vs. 43M first half net income on 45% revenue rise. Havas sees worldwide advertising market declining 2.5% in 2001 vs. 2000, despite a previous +6% expectation, and believes 2001 EBIT/Revenue ratio will be 10%-12%.

Schering AG (SHR) will sell its 24% stake in Aventis CropScience,

simultaneously with AVENTIS, to Bayer AG. Schering expects to get EUR 1.5B.


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