) to buy from hold. The company noted a Washington Post article about the rise in defense sector shares.
Mexico's Coca-Cola Femsa (KOF
) agreed to acquire Miami-based PanAmerican Beverages in a $3.6 billion deal, including the assumption of debt. Terms: $22 cash per PanAmerican share.
Tweeter Home Entertainment (TWTR
) sees first quarter same-store sales down 12%-15% vs. previous expectations for flat to +1%. Tweeter sees 20 cents to 25 cents first quarter earnings per share vs. 56 cents last year. As a result of the warning, Circuit City (CC
) and Best Buy (BBY
) shares are lower Monday.
Gerard Klauer Mattison cut its estimates.
Qwest Communications (Q
) has reduced its debt by roughly $1.9 billion to $22.6 billion by exchanging outstanding debt for new debt securities.
CS First Boston upgraded Cablevision (CVC
) to neutral from underperform, and raised its target.
) said it would acquire Internet search-software maker Inktomi (INKT
) in a deal valued at $241 million, including debt, or $1.65 a share. S&P reiterates sell.
J2 Global Communications (JCOM
) confirmed guidance for subscriber and channel revenue growth, and EBITDA flow-through for the fourth quarter. The Internet-messaging company expects fourth quarter pre-tax earnings per share to meet or exceed the Street's estimates. Pacific Growth reiterates overweight.
Battery maker Energizer (ENR
) expects first quarter earnings per share of 93 cents to 96 cents, including non-recurring income of four cents related to intellectual property rights. Banc of America raised estimates. S&P keeps hold.
JP Morgan upgraded St. Jude Medical (STJ
) to overweight from neutral.
According to Barron's, Salomon says Weight Watchers (WTW
) may be fully priced. Salomon says it is comfortable with a valuation above $40, adding that a chunk of earnings per share growth comes from reducing debt.
Video game maker THQ (THQI
) sees 40 cents to 43 cents fourth quarter operating earnings per share on $215 million to $220 million in revenues and a 15 cent first quarter 2003 loss, and 90 cents 2003 earnings per share, citing lower-than-expected sales of the company's GameCube portfolio.
American Greetings (AM
) posted 62 cents vs. 56 cents third quarter earnings per share from operations on a 2.2% sales rise, and sees $1.45 to $1.55 fiscal 2003 earnings per share from operations.
S&P downgraded Electronic Arts (ERTS
) to accumulate from buy.
The FDA approved Pharmacia's (PHA
) once-daily prescription eye drop Xalatan as initial treatment for elevated eye pressure associated with open-angle glaucoma or ocular hypertension.
Cypress Semiconductor (CY
) sees fourth quarter revenues of about $174 million, 7% lower than the $187 million consensus estimate, saying bookings and turns run-rates slowed significantly since the first week of December and are not expected to rebound during the holidays.
Pitney Bowes (PBI
) will take a fourth quarter pre-tax non-cash charge of about $100 million, or 26 cents per share, to write down its investments in commercial aircraft leases with US Airways and United Air Lines.
) set a reserve for a settlement with the SEC, Nasdaq, New York Stock Exchange and New York Attorney General. The company will increase credit reserves. Citigroup sees a $1.5 billion ($0.29 per share) fourth quarter charge for litigation, Enron matters and the increased credit reserve. S&P reiterates buy.
Moody's Investors Service says it may cut McDonald's (MCD
) long-term senior debt ratings.
Federated Department Stores (FD
) says it is likely that November-December same-store sales will miss its forecasts.
Felcor Lodging (FCH
) says fourth quarter revenue per available room (RevPAR) will be below the previous guidance of 4%-6% growth. Deutsche Bank downgraded to hold from buy.
Host Marriott (HMT
) sees comparable RevPAR growth in 2003 closer to the lower end of a previously disclosed range of 0%-4%, and sees further margin deterioration.
Abbott Labs (ABT
) says the FDA has approved Depakote ER tablets for sole and adjunctive therapy to treat complex partial seizures, as well as for simple and complex absence seizures in adults with epilepsy.
) says the FDA approved Gleevec for first-line treatment of adult patients with newly diagnosed Philadelphia chromosome-positive chronic myeloid leukemia.
Exxon Mobil (XOM
)says the Alabama Supreme Court reversed a $3.5 billion jury verdict levied against Exxon in a Mobile Bay royalties dispute that sends the case back to a lower court for retrial.