Markets & Finance

CIBC Suspends Rating on CA Shares


Cisco Systems (CSCO) shares were lower following a news report citing evidence that more than 12 top officials at Cisco may have held undisclosed stakes in a Silicon Valley partnership that benefited greatly from its ties to the company during the 1990s.

USB Piper initiated coverage of EMC Corp. (EMC) with market perform. The firm says EMC's enterprise storage systems are unlikely to recover to past levels.

Ciena (CSCO) posted a $0.17 first quarter loss per share vs. $0.18 EPS on a 54% revenue decline.The company sees about $110 million in revenues for the second quarter. S&P put its 2002 EPS estimate under review, keeps hold. CSFB, Salomon SB cut estimates.

CIBC World suspended its buy rating on Computer Associates (CA). The firm says uncertainty surrounding the federal investigation of CA's accounting practices makes it hard to render a meaningful investment opinion. Further details were unavailable. The company was unavailable for comment.

Morgan Stanley downgraded New York Times (NYT), E.W> Scripps (SSP), Tribune Co. (TRB), and Wahington Post (WPO) to underperform from neutral.

Barnes & Noble (BKS) sees fiscal 2002 EPS of $1.28 on better than expected retail sales. The company sees EPS rising to $1.87 in fiscal 2003.

S&P reiterates its strong buy opinion.

According to a press report, Janus Capital Corp. has been selling shares in AOL Time Warner (AOL) even as some of its managers publicly maintained a positive position on the stock.

BellSouth (BLS) says it sees 3%-5% 2002 normalized EPS growth (excluding foreign exchange) and 2%-4% total operating revenue growth. The telecom company cites recent currency devaluations and deteriorating economic conditions in Argentina and Venezuela.

Retailer JC Penney (JCP) reported fourth quarter EPS of $0.35, versus a $0.18 loss per share from continuing operations on flat sales. It sees $0.85-$0.95 fiscal year 2003 EPS.

Banc of America Securities reduced its 2002 profit forecast for Intel Corp. (" channel="pi"/>).

Morgan Stanley upgraded Cox Communications (" channel="pi"/>) to strong buy from outperform.

Salomon SB upgrades Macromedia (MACR) to buy from neutral.

Synopsys Inc. (SNPS) posted $0.27 vs. $0.19 first quarter earnings per share before goodwill on a 12% revenue rise. The company posted $0.22 vs. $0.15 GAAP EPS. Excluding the effects of proposed mergers, Synopsys sees $0.34-$0.38 second quarter EBG on revenue of $183-$187 million.

Cintas (CTAS) sees EPS of $0.31-$0.33 for the fourth quarter and $1.36-$1.39 for all of fiscal 2002. The company notes that the North American economy continues to be sluggish, and does not see any improvement until the second half of calendar 2002.

Aetna (AET) posted a $0.59 fourth quarter loss per share vs. $0.20 EPS from operations on 9% lower revenue.

Resources Connection (RECN) says third quarter revenue will fall marginally short of second quarter results as a result of weak demand during the holiday period, and a still-weak economy.

RadioShack (RSH) posted $0.67 (adjusted) vs. $0.74 (reported) fourth quarter EPS on 2% lower same-store sales and 4% lower total sales. The company remains confident it will deliver 13%-15% EPS growth in 2002. It expects $0.28-$0.29 first quarter EPS.

Nextel Communications (NXTL) posted $124 million vs. $109 million fourth quarter domestic operating income on a 23% revenue rise.

Pozen Inc. (POZN) says the FDA agreed to accept results from an ongoing rat carcinogenicity study during a new drug application review period for MT 100. FDA approval of the NDA is still dependent on the successful completion and review of two carcinogenicity studies.

OTG Software (OTGS) agreed to be acquired by Legato Systems (LGTO) in a deal valued at about $403 million, or $11.13 per share.


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