) delayed the launch of its Hammer chip. Morgan Stanley and UBS Warburg cut estimates. S&P reiterates avoid.
Integrated Defense (IDE
) agreed to acquire BAE Systems' Advanced Systems unit for $146M cash, and expects the acquisition to be accretive to 2003 EPS.
J D Edwards (JDEC
) S&P ties weakness to information in a 10-Q that shows the company benefited from lower allowance for doubtful accounts.
Thomas Weisel downgraded Zoran (ZRAN
) to market perform from attractive.
) sees $0.50-$0.52 Q3 EPS, and $2.00-$2.05 for 2002, citing continued weakness in the commercial aerospace aftermarket and the Automation & Control Solutions unit. Lehman downgraded to equal-weight from overweight; JP Morgan cut to market perform from buy. Deutsche Bank cut its estimates.
ESS Technology (ESST
) sees lower than expected $0.13-$0.21 3Q EPS on revenue of $60M-$64M, citing slowing demand worldwide and increased competition. SoundView downgraded to neutral from outperform.
) posted $0.19 vs. $0.16 Q3 EPS (GAAP) despite a 2.5% revenue decline, meeting reduced estimates. The software company posted $0.22 pro forma EPS, and sees $0.21-$0.25 Q4 EPS (pro forma) on $285M-$300M revenue.
AG Edwards upgraded Xcel Energy (XEL
) to buy from hold, and set a $14 target.
Genesis Micro (GNSS
) raised the Q2 revenue guidance to $45M-$46M. Pacific Growth upgraded to equal weight from underweight.
Goldman added Pepsi Bottling (PBG
) and Coca-Cola Enterprises (CCE
) to its recommended list; the stocks were previously rated market outperform.
) posted $0.12 vs. $0.03 Q2 EPS (pro forma) on an 8% revenue rise, and posted $0.17 Q2 net EPS. USB Piper cut the estimates and price target.
West Corp. (WSTC
) sees about $0.20 Q3 EPS on revenues of $202M-$205M, citing higher than expected costs related to bad debt and reduced call volume.
) reportedly told the FDA that its Medisystems blood tubing used in some of its dialysis machines may be linked to five patient deaths.
) posted $0.36 vs. $0.33 Q3 EPS on a 12% sales rise.
) sees Q4 revenues declining about 20%-25% sequentially, and a $0.45 pro forma loss per share from continuing operations. Lucent targets $2.5B-$3.0B new quarterly EPS breakeven revenue. S&P downgraded to avoid from hold.
) cut its $0.40-$0.44 Q3 EPS guidance to $0.31-$0.35, and cut the $0.45-$0.49 Q4 guidance to $0.35-$0.39, excluding one-time charges. Sonoco cited a delay in the recovery of increased costs for old corrugated containers (OCC).
) will add $750M to its Fireman's Fund Insurance Co. unit's reserves for asbestos and environmental (A&E) exposure, bringing total A&E reserving to $1.51B.
France Telecom (FTE
) says Michel Bon, chairman and CEO, has submitted his resignation to the French government.
) says the FDA has committed to complete a review of its Amevive application within six months. The FDA determined the applications was a class 2 resubmission. UBS Warburg cut estimates.
Tyson Foods (TSN
) inked a pact to sell its Specialty Brands, Inc. subsidiary to Fremont Partners. Terms were not disclosed.