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