Markets & Finance

Disney Cuts Profit Forecast


Walt Disney (DIS

) posted $0.18 vs. $0.19 third quarter EPS (as reported) on 3% lower revenue. The company expects fourth quarter EPS will likely be somewhat lower than year-ago (pro forma) amounts. Goldman Sachs downgraded the shares. S&P maintains hold.

AOL Time Warner's (AOL

) dealings with software firm PurchasePro.com are being investigated by the SEC, according to the Wall Street Journal. Investors fear the accounting probe will spread to the former Time Warner.

National Semiconductor (NSM

) expects first quarter sales to be around the same level as the fourth quarter of fiscal 2002, vs. its previous 6%-8% growth guidance. The company cited lower than expected sales for PC products. Morgan Stanley and Salomon SB cut estimates.

AstroPower (APWR

) shares skidded after the company posts $0.02 vs. $0.07 second quarter EPS despite a 27% revenue rise. It sees $24-$26 million third quarter product revenue, and $26-$30 million in the fourth quarter. RBC Capital and Wedbush Morgan downgraded the stock.

American Power Conversion (APCC

) posts $0.15 vs. $0.18 second quarter EPS on a 13.4% revenue decline. Adams Harkness upgrades to buy from market perform.

S&P says shares of UAL Corp. (UAL

) are down as Business Week reports the company confirmed it hired bankruptcy lawyers earlier this year. S&P reiterates avoid.

Tyco International (TYC

) CFO Mark Schwarz and general counsel Irving Gutin decided to leave the company.

Maxim Integrated Products (MXIM

) shares fell after CS First Boston cuts estimates and targets on MXIM and ADI.

Hanover Compressor (HC

) announces resignations of CEO Michael McGhan and COO Charles Erwin. It says chairman Victor Grijalva will serve as CEO pending a replacement. Wachovia downgrades to hold.

Trizec Properties (TRZ

) shares fell after Salomon Smith Barney downgrades to sell from outperform. Yesterday the company posted $0.52 vs. $0.58 second quarter FFO despite 2.3% revenue rise, cut $2.37 '02 FFO guidance to $2.10-$2.15.

Wet Seal (WTSLA

) late Thursday forecast $0.12-$0.14 second quarter EPS, mid-single digit decline in July comp sales. Wachovia cuts estimates... S&P reiterates accumulate.

Hologic (HOLX

) share fell after Needham downgraded to buy from strong buy. Yesterday the company posted $0.02 third quarter EPS. It forecast slight sequential increase in fourth quarter EPS and revenue.

Tesoro Petroleum (TSO

) shares fell after Bear Stearns downgraded to sell from unattractive. Yesterday the company posted $0.28 second quarter loss per share.

Noven Pharmaceutical (NOVN

) posts $0.28 vs. $0.14 second quarter EPS on 28% revenue rise. S&P keeps hold.

Tekelec (TKLC

) reports $0.10 vs. $0.03 second quarter EPS (pro forma) on 13% revenue rise. It sees $0.08-$0.10 third quarter EPS (pro forma) on $72-$74 million in revenue. HC Wainwright upgrades to buy. Lehman keeps strong buy. And Wachovia keeps hold.

General Electric (GE

) unit GE Industrial Systems agrees to acquire NovaSensor Inc., a unit of TRW (TRW

). Terms were not disclosed.

Starbucks (SBUX

) posted 7% higher July same store sales and 26% higher total consolidated sales. Morgan Stanley raised its estimates.

Morgan Stanley downgraded Ross Stores (ROST

) to equal-weight from overweight.

Strayer Education (STRA

) posted $0.51 vs. $0.42 second quarter EPS on a 25% revenue rise. The company sees $0.16-$0.18 third quarter EPS. It raised its $1.74-$1.78 2002 EPS forecast to $1.76-$1.80.

Four Seasons (FS

) posted C$0.48 vs. C$0.72 second quarter EPS on a 10% revenue drop. The company sees C$0.24-C$0.28 third quarter EPS, C$0.54-C$0.60 for the fourth quarter, and C$1.47-C$1.57 for all of 2002.


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