) sees second-quarter earnings per share slightly above breakeven and $266 million to $268 million in revenue. Baird cut the stock to neutral from outperform.
Analyst Craig Kennison says the company pre-released disappointing second-quarter results, and also had missed the first quarter forecasts. He says his second-quarter EPS estimate was 15 cents, vs. breakeven guidance. He notes the company increased promotional activity to liquidate finished inventory, which was more than three times normal levels in the first quarter.
He says pricing pressure further exacerbated the impact on margins while cutting into MNC's share. He believes execution remains a valid concern. He sees $0.76 2003 EPS, and $1.35 in 2004. The analyst cut his $18 price target to $16.