Markets & Finance

Adelphia's Woes Mount


Shares of Adelphia (ADLAE) did not trade for a second straight session. The company reportedly notified the Securities and Exchange Commission that it will not file its quarterly report on time. Earlier, Adelphia announced Timothy Rigas' resignation effective immediately, though he will retain a seaton the company's board. Adelphia says a Special Committee will conduct a full investigation into company issues. On May 15, John Rigas resigned as Adelphia's chairman and CEO.

Shares of Pfizer (PFE) ended lower after the company reportedly said U.S. regulators are extending the timeframe covered in their investigation into Lipitor pricing. Also, several attorneys general are reportedly reviewing Pfizer's marketing of Neurontin.

S&P keeps hold on CMS Energy (CMS), saying that the company's "round-trip" trades, detailed in a May 15 Wall Street Journal article about, while not illegal, have further damaged investor confidence.

BellSouth (BLS) shares closed higher after the Baby Bell received approval from the U.S. Federal Communications Commmission to offer long distance service in Georgia and Louisiana. S&P keeps its avoid rating on the shares.

Dillard's (DDS) shares gained ground after the retailer postesd $0.68 vs. $0.30 Q1 EPS from operations as higher gross margin and lower selling, general & administrative costs offset slightly lower same-store sales and flat total sales.

ImClone Systems (IMCL) shares fell after Germany's Merck KGaA reportedly says it won't supply clinical data to support the joint ImClone-Bristol-Myers (BMY) application for approval of the anti-cancer antibody Erbitux in the U.S.

Merrill downgrades NPS Pharmaceuticals (NPSP) to near term buy from strong buy. Maintains long term strong buy.

At its May 15 analyst meeting, IBM's (IBM) CEO said he is comfortable with $4.16 EPS on revenue of $83 billion for 2002. He would not comment on previously rumored headcount reductions. S&P keeps accumulate.

Dana Corp. (DCN) raised its Q2 EPS from operations guidance to $0.33-$0.35, from previous guidance of $0.28. The company cited cost-reduction initiatives and a stronger than expected rate of light-vehicle production.

Merrill upgrades CSK Auto CAO) to near, long term strong buy from neutral.

Factory 2-U (FTUS) posted a narrower than expected $0.24 Q1 loss per share on 12% lower same store sales and 7.1% lower total sales. Wedbush Morgan reiterates buy.

Viasat (VSAT) posted $0.07 Q4 loss vs. $0.20 EPS (pro forma) despite a 5.1% revenue rise. Salomon SB downgrades to neutral from outperform.

Salomon SB upgrades Foundry Networks (FDRY) to buy from outperform.

AnnTaylor Stores (ANN) posted $0.67 vs. $0.37 Q1 EPS on 13% higher sales. The company raised its Q2 EPS guidance to $0.38-$0.40, Q3 to $0.67- $0.69, Q4 to $0.48-$0.50. Merrill downgraded the shares. S&P raised its estimate.

Brocade (BRCD) posted $0.06 vs. $0.05 Q2 EPS on 17% revenue rise. Bear Stearns has some concerns but maintains its attractive rating. S&P keeps avoid.

Intuit (INTU) posted $0.75 vs. $0.57 Q3 EPS (pro forma) on 28% revenue rise. S&P reiterates strong buy.

AdvancePCS (ADVP) posted $0.34 vs. $0.11 Q4 EPS from operations on 15% revenue rise. The company expects fiscal 2003 EPS growth of 25%.

According to a press report, Instinet (INET) is in talks to buy Island ECN in deal that could be worth more than $500 million.

American Eagle Outfitters (AEOS) reports $0.17, vs. $0.21 first quarter EPS, on 6% lower consolidated same-store sales.

Nordstrom (JWN) posted $0.22 vs. $0.18 Q1 EPS from operations despite a 2.1% same store sales decline. The company sees $0.34-$0.38 Q2 EPS from operations on flat to slightly negative same-store sales. It raised its fiscal 2003 EPS guidance to $1.18-$1.22.


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