Markets & Finance

Best Buy Slides amid Weak Sales Outlook


Schering-Plough (SGP) disagreed with and will appeal a U.S. District Court ruling which found certain claims of patent protecting against generic versions of Claritin, expiring in 2004, are not valid.

Salomon SB downgraded Cross Country (CCRN) to outperform. CIBC World reiterates strong buy on price. Janney Montgomery initiated with buy.

Hispanic Broadcasting (HSP) is seen lower in sympathy with Univision, which posted Q2 results and provided disappointing guidance. Hispanic Broadcasting is in a pact to be acquired by Univision.

Cobalt (CBZ) says due to unfavorable market conditions, it withdrew its registration statement for a proposed stock offering.

Best Buy (BBY) cut its $0.30-$0.32 Q2 EPS guidance to $0.17-$0.21, citing a decline in consumer confidence resulting in flat same store sales in the past four weeks. S&P and Salomon downgraded.

CIBC World believes Cablevision has decided to drop Safeguard Scientifics as its digital set-top vendor, and has likely chosen Scientific Atlanta (SFA). CIBC reiterates its buy rating.

Mid-Atlantic Medical (MME) posted $0.44 vs. $0.30 Q2 EPS on 28% higher revenues. UBS Warburg raised estimates. S&P reiterates accumulate.

Shaw Group (SGR) says its Stone & Webster unit was notified by a Mirant unit that Mirant is suspending construction on Mint Farm. Shaw cut its $2.90-$3.18 fiscal 2003 EPS guidance to $2.72-$3.00. S&P reiterates hold.

Citigroup (C) and JP Morgan Chase (JPM) opened higher on news of the IMF's $30 billion bailout package for Brazil as these banks have high exposure to this nation. Citigroup also agreed to expense stock options.

Hollywood Casino (HWD) agreed to be acquired by Penn National Gaming for a total consideration of about $780 million, or $12.75 cash per share.

Univision (UVN) posted $0.09 vs. $0.12 Q2 EPS despite 36% higher revenue, and posted Q2 EBITDA of $86.8 million vs. $94 million. Univision also sees $0.05-$0.08 Q3 EPS on revenue of $263 million to $280 million; and cut the 2002 guidance to $0.29-$0.34 EPS on revenue of $1.102 billion to $1.136 billion.

American Eagle (AEOS) posted 5.4% lower July consolidated same store sales, and 8.2% higher total sales. CIBC World cut its estimates and target.

Whole Foods (WFMI) posted $0.36 vs. $0.29 Q3 EPS from continuing operations on a 21% sales rise, and sees $0.32-$0.36 Q4 EPS on 17%-22% sales growth. Whole Foods raised the fiscal 2002 EPS guidance to $1.36-$1.40 from $1.30-$1.36.

Intel (INTC) reportedly is expected to announce Thursday in an SEC filing that it will not expense stock options.

Qwest Communications (Q) posted a $0.13 Q2 adjusted normalized loss vs. $0.08 EPS on a 17% revenue drop, and sees $17.1 billion to $17.4 billion 2002 revenue, and $5.4 billion to $5.6 billion adjusted EBITDA, on a $0.46-$0.49 normalized loss. Qwest expects to be cash flow positive for 2002.


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