Markets & Finance

Raytheon Climbs as CFO Resigns


Raytheon (RTN) CFO Frank Caine resigned, and named Edward Pliner to replace Caine in the position. S&P says Caine's departure is not surprising.

Deutsche Bank upgraded Invitrogen (IVGN) to buy from hold, saying the life sciences research products company gave a solid business plan to accelerate earnings above revenue growth. Baird upgraded to outperform from neutral.

Dow Jones (DJ) says advertising linage, or volume, at The Wall Street Journal declined 4.5% vs. down 45.2% in November of last year, and expects December and fourth quarter linage at the newspaper to decline in the low double-digits percent range, resulting in fourth quarter earnings per share from operations in the mid 20-cent range. S&P is reviewing its sell recommendation.

RBC Capital upgraded storage networking equipment firm McData (MCDTA) to sector perform from underperform.

UBS Warburg cut AmerisourceBergen's (ABC) price target by $2 to $68, citing news that Tenet Healthcare may have pulled its $450 million a year pharmaceutical distribution contract.

Lehman Brothers downgraded Valero Energy (VLO) and Frontier Oil (FTO) to equal-weight and downgraded Tesoro Petroleum (TSO) to underweight.

Bally Total Fitness (BFT) named Paul Toback CEO to replace Lee Hillman, who is retiring. On a conference call Tuesday, Bally said it expects 34 cents to 45 cents fourth quarter earnings per share to trend toward the lower end of a range, consistent with previous guidance.

Prudential downgraded Sara Lee (SLE) to hold from buy.

Electronic Data Systems (EDS) says the company and the Bank of Bermuda are in final contract talks to provide the Bank of Bermuda with a package of banking systems and end-to-end servicing of information technology valued at $375 million over 12 years. S&P reiterates avoid. Lehman raised its target.

ArQule (ARQL) sets a restructure and cuts 31% of its workforce; the company will also take a charge. The chemical compound maker sees a 73 cents to 79 cents loss from operations. Legg Mason downgraded to hold. Legg Mason downgraded ArQule to hold from buy.

The Delaware Supreme Court reversed a lower court's dismissal of Omnicare's (OCR) move to block a proposed merger between NCS HealthCare and Genesis Health Ventures. CIBC World upgraded to sector outperform from sector perform.

MetLife (MET) expects $2.80-$2.90 2003 operating earnings per share, an increase of about 10%-15% from 2002. The life insurance giant says operating return on equity is expected to be in the range of 12.5%-13% in 2003, and expects to achieve 10%-15% annual operating earnings per share through 2005. S&P reiterates buy.

Morgan Stanley upgraded First Data (FDC ) to overweight from underweight.

Societe Generale De Financement Du Quebec decided to divest all its interest in Domtar (DTC).

Kimberly-Clark (KMB) cut the 81 cents fourth quarter earnings per share guidance to 72 cents to 76 cents, and sees slightly lower sales. The company notes competitive challenges in diaper and training pants businesses in North America and Europe.

Toll Brothers (TOL) posted 93 cents vs. 92 cents fourth quarter earnings per share on an 8% rise in revenue. Analysts were expecting a mean of 89 cents earnings per share. The luxury homebuilder sees $2.6 billion fiscal 2003 revenue, and $3 billion in fiscal 2004.

Prudential reportedly upgraded Wellpoint (WLP) to buy from hold.

Xilinx (XLNX) expects December quarter revenue to be up 1%-3% sequentially, and says days of sales outstanding are expected to trend lower sequentially. S&P reiterates accumulate.

Photronics (PLAB) posted a six cent fourth quarter loss from operations vs. seven cents earnings per share on a 4% sales decline.

New York Times (NYT) believes 2002 earnings per share will fall in the middle of a previously announced range of $1.90-$2.00. The publishing company also believes the 2003 earnings per share growth rate will range from the mid-single digits to the low-double digits.

Schlumberger (SLB) announced fourth quarter charges of $3.17 billion ($5.44 per share), of which less than $160 million will have a cash impact, due to the restructuring of SchlumbergerSema and WesternGeco.

Atlas Air (CGO) says CFO Douglas Carty is leaving the company to take a position at Laidlaw, Inc.


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