Markets & Finance

Guidant Drops on Court Ruling


Witness Systems (WITS) cut its third quarter guidance to a $0.04-$-0.05 loss on about $15 million revenues from $0.03 earnings per share on $18 million revenues. Witness sees breakeven to $0.02 fourth quarter earnings per share on $16.5 million to $17.5 million in revenues.

Financial services provider Comerica (CMA) sees $3.40-$3.50 2002 earnings per share due to the adoption of accounting for stock options and charges related to a provision for credit losses and goodwill impairment. Comerica will adjust its second quarter earnings per share to $0.90. S&P downgraded.

Walt Disney (DIS) CEO Michael Eisner forecast strong, double-digit fiscal 2003 earnings per share growth and revealed plans to unify some cable and TV management, according to a Wall Street Journal report.

Dell Computer (DELL) sees $0.21 third quarter earnings per share, at the high end of previous guidance, on better than expected revenue of $9.1 billion. S&P maintains hold.

A U.S. district court ruled in favor of Boston Scientific (BSX) in drug-coated stent patent litigation with Cook Inc. and Guidant (GDT). Both CIBC World and S&P upgraded Boston Scientific and downgraded Guidant. Banc of America also upgraded Boston Scientific. Separately, Angiotech Pharmaceuticals (ANPI) says the Boston Scientific ruling does not alter its co-exclusive license with Cook, and says the end result of the decision cannot be measured until the appeals process is completed.

Arm Holdings (ARMHY) sees third quarter pre-tax profit of about eight million British pounds on revenues of about 33 million pounds. Arm sees no significant upturn in biz activity before next year. RBC Capital put its estimates under review.

Merrill cut its estimates on semi-equipment names, including Applied Material (AMAT).

RBC Capital reiterates its outperform rating on Surmodics (SRDX).

Dow Chemical (DOW) expects third quarter earnings per share to be about same as underlying earnings per share of $0.16 a year ago, citing feedstock costs, particularly in Europe.

Cambrex (CBM) sees $0.45-$0.50 third quarter earnings per share from operations, saying a large pharmaceutical intermediate shipment in the third quarter of 2001 will not repeat in the current third quarter. Cambrex also noted weak industrial demand. Banc of America downgraded to market perform.

Electronic Data (EDS) received a request for voluntary cooperation in an informal inquiry by the SEC regarding EDS' purchase and settlement of forward contracts related to its common stock, and information regarding events leading up to recent earnings per share guidance.

Bob Evans (BOBE) posted 1.3% lower September same-store sales in core restaurants, but says due to strong profitability in the food products biz, it still is comfortable with $0.55 second quarter earnings per share.


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