Markets & Finance

Cardinal Health Shares Fall


The CFO of Cardinal Health (CAH) has resigned in the middle of a regulatory investigation into company's accounting. The company delayed its fourth quarter earnings release. S&P Ratings placed the company's debt ratings on CreditWatch with negative implications. S&P downgraded its recommendation on the stock. Shares closed lower.

Cray Inc. (CRAY) posted a second-quarter loss per share of 64 cents, vs. earnings per share of 10 cents (GAAP basis) one year earlier, despite sharply higher revenues. The company notes second-quarter weakness was compounded by a contract delay for a major order and a slowdown in its defense segment. Piper Jaffray downgraded the shares to underperform. Shares closed down sharply.

Verizon Communications (VZ) posted second-quarter earnings per share of 64 cents, vs. 12 cents (including items), on 6% higher operating revenue. Shares closed higher.

Deutsche Bank reportedly upgraded American Express (AXP) to buy from hold. On Monday, the company posted second-quarter earnings per share of 68 cents, vs. 59 cents. Shares closed higher.

L-3 Communications (LLL) posted second-quarter earnings per share of 81 cents, vs. 53 cents, on a 37% revenue rise. The company sees 2004 sales growing in excess of 30% from 2003, to more than $6.6 billion, and $3.40 earnings per share for the full year. Shares closed higher.

Nortel Networks (NT) said that its business model was not achieving the comapny's targeted operating cost (SG&A, R&D) performance of below 40% of overall revenues, and gross margin percent in the mid-40s. Shares closed down sharply.

Morgan Stanley downgraded King Pharmaceuticals (KG) to equal-weight from overweight. On Monday, the company agreed to be acquired by Mylan Labs (MYL) in deal valued at abt $4 billion, or $16.659 for each King share. Shares closed lower.

Icon (ICLR) posted fourth-quarter earnings per share of 51 cents, vs. 43 cents on an 18% revenue rise. The company said that some recent project delays in the U.S. led it to expect that revenue growth will slow in the first half of fiscal 2005, particularly in the second quarter. Icon sees 10% fiscal 2005 revenue growth, and earnings per share in the range of $2.00 to $2.10. Shares closed down sharply.

Dentsply International (XRAY) posted second-quarter earnings per share of 60 cents, vs. 55 cents, on a 7.8% revenue rise. Shares closed higher.

Lockheed Martin (LMT) posted second-quarter earnings per share of 66 cents, vs. 54 cents, on a 14% sales rise. It sees 2004 earnings per share of $2.50 to $2.60, with results expected to be closer to the higher end of the range. Shares closed lower.

Oshkosh Truck (OSK) posted third-quarter earnings per share of 85 cents, vs. 69 cents, on an 11% sales rise. As a result of its strong third quarter, the company raised its fiscal 2004 earnings per share guidance from $2.90 to $3.00. It sees $3.30 fiscal 2005 earnings per share. Oshkosh also raised its quarterly dividend by about 50%. Shares closed lower.

DuPont (DD) posted second-quarter earnings per share of 50 cents (including a 30-cent charge), vs. 67 cents (including a 5-cent benefit), despite a 2% consolidated sales rise. DuPont raised its 2004 earnings per share outlook to $2.25 to $2.35, with the third quarter accounting for about 40% of second-half earnings per share. Shares closed lower.

Jones Apparel Group (JNY) posted second-quarter earnings per share of 61 cents, vs. 54 cents, on a 7.4% sales rise. The company sees 2004 earnings per share of $2.75-$2.80 on $4.52 billion to $4.54 billion in revenue, reflecting the Maxwell Shoe Co. acquisition. Jones set a $100 million share buyback, and raised its quarterly dividend 25% to 10 cents. Shares closed lower.

IBM Corp. (IBM) reportedly says it has been selected to build a supercomputer for the U.S. Dept. of Defense that would be used by the military for war simulation, weather forecasting, and other applications. Shares closed higher.

Hydril (HYDL) posted second-quarter earnings per share of 39 cents, vs. 27 cents, on 15% higher revenues. CS First Boston upgraded its recommendation to neutral from underperform. S&P maintains its accumulate recommendation. Shares closed higher.

Pulte Homes (PHM) posted second-quarter earnings per share from continuing operations of $1.45, vs. 98 cents, on a 29% rise in consolidated revenue. The company raised its 2004 earnings per share from continuous operations guidance to a range of $7.80 to $8.00. S&P maintained its hold recommendation. Shares closed higher.


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