Markets & Finance

Bristol-Myers Confirms SEC Investigation


Bristol-Myers (BMY) confirmed that it is being investigated by U.S. regulators for allegedly inflating sales by $1 billion last year. Lehman noted that the company announced excessive inventory in April.

Lehman does not believe Intel (INTC) will change 2002 capex guidance of $5.5B, and is comfortable with Q2 estimates and rates market perform.

Medimmune (MEDI) received a Complete Response Letter from the FDA for its BLA for FluMist, in which no additional clinical trials have been requested. S&P maintains accumulate.

Network Assoiates (NET) posted $0.12 second quarter earnings per share on $212M revenue and sees $0.11-$0.13 third quarter EPS, excluding the purchase of McAfee on $205M-$215M revenue, and also sees 2002 revenue, minus McAfee, at the low end of previous guidance. S&P keeps hold.

SAP AG (SAP) was halted at $21.70 after reportedly posting a 4% decline in second quarter revenues; the company cut its 2002 revenue growth guidance to 5%-10% from 15%.

Footstar (FTS) says it will supply Thom McAn family footwear for 300 Wal-Mart stores beginning in October. The company says new initiatives are expected to add $0.02-$0.03 to second half EPS.

First Data (FDC) UP 2.67 to 35.25... Sees $0.41 Q2 EPS from operations largely due to the outstanding performance of Western Union.

UBS Warburg downgraded General Motors (GM) to hold from buy.

Murphy Oil (MUR) sees Q2 net of a $0.05 loss to $0.15 EPS, which includes a projected loss from downstream operations of about $8M.

Friedman Billings downgraded Biogen (BGEN) to underperform from market perform on new competition from the Serono Serono (SRA) and Pfizer (PFE) partnership. The two drug makers are in a deal to co-promote Serono's multiple sclerosis treatment, Rebif, in the U.S. Pfizer will pay Serono an up-front fee of $200 million.

Verisign (VRSN) sees lower than expected $0.14-$0.15 Q2 EPS (pro forma) on revenue of $315M-317M.

IDEC Pharmaceutical (IDPH) sees Q2 EPS of about $0.20, citing U.S. net sales of Rituxan totaling $257.4M for Q2, and U.S. net sales of Zevalin totaling $3.3M.

American Eagle (AEOS) posted 3.9% lower June consolidated same store sales, and cut the Q2 EPS guidance to $0.14-$0.17.

Digene (DIGE) says the FDA issued a non-approval letter for its pre marketing approval for use of TriPath Imaging's SurePath Test as a specimen collection medium for the company's Hybrid Capture 2 HPV DNA Test. Digene sees a $0.55-$0.58 2002 loss on $48.5M-$49M revenue. Hybrid Capture 2 is a general screening test for ruling out high-grade cervical disease or cancer, when used in conjunction with a Pap smear.

Wal-Mart Stores (WMT) posted 7.9% higher June sames store sales and 14% higher total sales. The discount retail giant raised its $0.43-$0.44 Q2 EPS guidance to $0.44-$0.45, and upped the $1.74-$1.76 fiscal 2003 guidance to $1.76-$1.78.

Yahoo! (YHOO) posted $0.03 Q2 EPS (GAAP) vs. a $0.09 loss on a 24% revenue rise. The Internet portal company sees $225M-$250M Q3 revenue, and $900M-$940M for 2002, and also sees $38M-$48M Q3 EBITDA and $140M-$165M EBIDTA for 2002. Merrill reportedly downgraded to near term reduce/sell.

Eastman Kodak (EK) sees about $0.85 Q2 operating EPS vs. $0.60-$0.70 guidance, citing improved manufacturing productivity and operating performance, and an earlier-than-anticipated realization of cost benefits of restructuring. Kodak still sees 2002 sales below 2001.

Aon Corp. (AOC) received a SEC letter addressing financial statements and disclosures in its 2001 10-K and Q1 2002 10-Q. Aon says it is unaware of any formal or informal investigation by the SEC despite speculation of such a probe in the company's subscription newsletter dated July 10.

ICN Pharmaceuticals (ICN) sees $0.15-$0.20 Q2 operating EPS vs. $0.44 consensus, citing lower product sales in North America, lower than expected revenues for its Photonics unit, and additional R&D expenses from a recent acquisition in North America.

Marriott International (MAR) posted $0.50 Q2 EPS on a 5.6% sales rise. The hotel and resort operator sees $0.41-$0.43 Q3 EPS, and $1.74-$1.78 for 2002.

Genentech (DNA) posted $0.23 vs. $0.19 Q2 EPS (pro forma) on a 26% total revenue rise.


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