Markets & Finance

Pfizer Mulls Sale of Razor and Gum Units


GE (GE) backed its forecast for 2002 earnings. The company expects second quarter earnings of $4.4B, up 13%, on revenue of $33B.

Pfizer (PFE) set a $10 billion share buyback and will explore options for its Adams confectionary, and Schick-Wilkinson Sword shaving products businesses.

Moody's placed Omnicom's (OMC) credit rating on review for a possible downgrade. Moody's is concerned about the advertising company's ability to maintain credit strength amid the current advertising climate.

Renaissance Learning (RLRN) sees lower than expected $0.25 second quarter EPS on revenue slightly above $33M, citing the tightened state education budgets. Pacific Growth says the news is clearly disappointing, but that the stock selloff is "excessive".

Constellation Brands (STZ) posted $0.40 vs. $0.33 first quarter EPS on a 9% sales rise and sees $0.52-$0.54 second quarter EPS, and $2.00-$2.04 for fiscal 2003. UBS Warburg upgraded to strong buy from buy.

Goldman says U.S. channel checks are surprisingly strong, creating the possibility that Sun Microsystems (SUNW) may be able to hit its fourth quarter consensus revenue estimates.

Motorola (MOT) says it is confident that second quarter sales will meet or slightly exceed $6.4B, and operating results will meet or be slightly better than a $0.04 loss. Motorola plans to cut 7,000 jobs, and sees a total restructuring charge of about $3.5B.

CSK Auto Corp. (CAO) completed the pricing of 8.242 million shares at $12 each.

CMS Energy (CMS) announced the resignation of Rodger A. Kershner as senior vice president, general counsel, and corporate secretary. CIBC World cut its estimates and target.

ConAgra (CAG) posted $0.36 vs. $0.23 fourth quarter EPS despite slightly lower sales, and says due to transaction costs, that it expects first quarter EPS to reflect low single-digit rate growth.

King Pharmaceuticals (KG) sees $1.54-$1.66 2003 EPS on $1.35B-$1.5B revenues, citing strong growth of Altace, and other branded products.

Andrx Corp. (ADRX) received FDA approval for Altocor, its proprietary cholesterol-lowering drug. Andrx sees a launch in Q3 2002.

RealNetworks (RNWK) sees lower than expected second quarter revenue of $42.5M-$45M, and a $0.01-$0.02 loss, citing weakness in its systems software business. CS First Boston cut estimates.

Simpletech (STEC) sees $0.02-40.03 second quarter GAAP loss on revenue of $41M-$42M vs. previous guidance of $0.01-$0.03 EPS on $45M-$50M revenue, noting DRAM prices. Friedman Billings cut estimates.

Lehman moved to a market weight/slight overweight position in semiconductors and upgraded Micron Tech (MU) to strong buy from buy. Lehman also upgraded Conextant (CNXT) to buy from market perform.

Electronics Data (EDS) says it provides substantial IT services to WorldCom, and that such services are unaffected by WorldComs announcement. EDS believes its exposure to unbilled revenues under a WorldCom agreement is not material.

Lehman reportedly cut estimates on Intel (INTC).


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