Markets & Finance

Biovail Falls After Cutting Revenue Outlook


Biovail (BVF) shares skidded after the company cut its third-quarter earnings per share guidance to 35 cents to 45 cents, and upped the revenue to $215 million to $235 million. Biovail cited a loss of revenue and income associated with a significant in-transit shipment loss of Wellbutrin XL as a result of a traffic accident.

DOV Pharmaceuticals (DOVP) shares fell after the company says the FDA placed the start of a Phase III pivotal trial of ocinaplon, DOV's novel anti-anxiety product candidate, on hold. The FDA requested additional safety information.

Software maker Siebel Systems (SEBL) expects third-quarter total revenue of $320 million to $322 million, and license revenues of $109 million to $110 million. It expects a loss, including charges, to be about 12 cents (3 earnings per share, excluding charges).

SAP (SAP) shares rose after CS First Boston reiterates outperform, saying its third-quarter forecasts for SAP are stronger than third-quarter results for Siebel (SEBL), and that SAP is still gaining market share.

Airline stocks climbed after Bear Stearns upgraded AMR Corp. (AMR) to outperform from peer perform, and raised earnings estimates on major airline carriers.

Robert Half International (RHI) shares were higher, as temporary and permanent staffing companies were benefiting from a stronger than expected September U.S. employment report. S&P reiterates sell on Robert Half.

Coffee chain Starbucks (SBUX) posted 9% higher September same-store sales, and 25% higher total sales.

ASML Holding (ASML) shares rose after Merrill Lynch upgrades to buy from neutral.

Adtran (ADTN) sees 41 cents to 42 cents third-quarter earnings per share on revenue of about $106 million, and 40 cents to 42 cents fourth-quarter earnings per share. Adtran cited sharply higher shipments of DSLAMS, an improving business climate in Enterprise Networks Division, and market share gains in end-user markets. S&P upgraded to hold. Deutsche Bank raised its estimates.

Mechanical and electrical construction company Emcor (EME) sees 90 cents to $1.01 second-half 203 earnings per share on revenue of $2.25 billion to $2.35 billion. It sees $1.65 to $1.75 2003 earnings per share on revenue of $4.4 billion to $4.6 billion. Emcor says gross profits continue to be restrained.

Deutsche Bank downgraded Pope & Talbot (POP) to sell from hold.

Brean Murray reportedly upgraded Wipro (WIT) to buy from hold.

Agricultural equipment maker Agco (AG) sees 17 cents to 22 cents third-quarter earnings per share, and $1.17 to $1.30 for 2003, below estimates. S&P cut the estimate, and maintains hold.

ATI Technologies (ATYT) posted 9 cents fourth-quarter earnings per share, vs. a 15 cents loss on 71% higher revenue. ATI sees $400 million to $430 million first-quarter revenue, 32%-35% gross margins, and sequentially flat-to-marginally higher net income.

FedEx (FDX) says employee acceptance of early retirement and severance programs at the FedEx Express unit has exceeded original estimates. As a result, FedEx now estimates pretax costs for these programs will be in the range of $380 million to $420 million in fiscal 2004.

Spectranetics (SPNC) says the FDA's Circulatory System Devices Advisory Panel recommended non-approval of the company's Pre-Market Approval supplement for LACI (Laser Angioplasty for Critical Limb Ischemia).

Schnitzer Steel (SCHN) posted 84 cents, vs. 12 cents, fourth-quarter earnings per share on 53% revenue rise, citing improving prices for ferrous recycled metal.

California Amplifier (CAMP) posted 3 cents, vs. 12 cents, second-quarter earnings per share on a 12% revenue decline. It sees 7 cents to 12 cents third-quarter earnings per share on revenue of $30 million to $36 million.

Highwoods Properties (HIW) will be added to the S&P MidCap 400 Index after the close of trade Oct. 7, replacing Overture Services, which is being acquired by Yahoo! (YHOO)


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