Markets & Finance

Security Stocks Higher on London Blasts

Posted on July 06, 2005

IPIX Corp. (IPIX

) are among security stocks trading higher in the wake of the London attacks.

Viisage Technologies (VISGE

), Identix (IDNX

), and Cogent (COGT

) among indentification techology stocks higher following London blasts.

American International Group (AIG

, and other companies in the insurance industry likely to come under severe pressure as European markets plunge on 6 bombings in London's transportation system. Among other industries that could see selling: airlines, hotels, and oil.

British Airways (BAB

) and other airlines are likely to come under pressure on London bombings.

Hilton Hotels (HLT

) and other hotel and leisure names are indicated lower as European markets plunge on seven bombings in London's transportation system.

UBS Financial upgrades Amgen (AMGN

) to buy from neutral.

Charles Schwab (SCH

) was higher on what Charles Schwab told our reporter was rumors that HSBC Holdings (HBC

) was supposedly interested in acquiring Charles Schwab, as well as positive brokerage comments.

Aeropostale (ARO

) cuts 20 cents to 23 cents second-quarter earnings per share estimate to 16 cents to 19 cents and says June gross margins were below last year. The company posts 2% higher June same-store sales and 24% higher total sales. S&P keeps buy and Pacific Growth downgrades.

Guess (GES

) posted 11% higher June same-store sales and 22% higher total sales.

AnnTaylor (ANN

) posted a smaller-than-expected 1.2% decline in June sames-store sales. It posts 11% higher total sales.

Pepsi Bottling Group (PBG

) posted 59 cents, vs. 53 cents second-quarter earnings per share on 7% higher revenues. It raises 2005 operating income growth estimate to 3% to 5%. It sees $1.82 to $1.88 2005 pro forma earnings per share (excluding an impact of the 53rd week).

May Department Stores (MAY

) posted flat June same-store sales and 21% higher total sales.

J.C. Penney (JCP

) posted 7.4% higher June comparable department store sales and 8.1% higher total department store sales. The company raises second-quarter earnings per share from continuing operations guidance to 35 cents to 40 cents from previous guidance of 25 cents to 30 cents.

Late Wednesday S&P downgraded shares of PacifiCare Health System (PHS

) to hold from strong buy on confirmed reports the company agreed to be acquired by UnitedHealth Group (UNH

) for $8.1 billion in cash, stock, or $80 per share.

Aeropostale (ARO

) cuts 20 cents to 23 cents second-quarter earnings per share guidance to 16 cents to 19 cents. the company says gross margins for June were significantly below last year. It posts 2% higher June same-store sales and 24% higher total sales. S&P maintains buy.

American Eagle Outfitters (AEOS

) raises second-quarter earnings per share guidance to 34 cents to 35 cents. The company posted 28% higher June same-store sales and 37% higher total sales. S&P maintains buy.

Ruby Tuesday (RI

) posted 40 cents, vs. 46 cents fourth-quarter earnings per share on an 8.9% drop in company-owned same-store sales. The company cuts first-quarter earnings per share to 33 cents from prior guidance of 37 cents to 42 cents on a 4% drop in same-store sales.

RedEnvelope (REDE

) celays filing fiscal 2005 Annual Report on Form 10-K in order to allow for completion of review of about $2.2 million inventory-related component of its accounts payable liability, which the company currently believes to be overstated.

RF Micro Devices (RFMD

) sees $159.3 million (GAAP) first-quarter revenue, vs. previous guidance of mid-$150 million. The company expects sequential gross margin improvements.

Integrated Devices (IDTI

) cuts first-quarter revenue outlook about 3% to 4% from immediate preceding quarter's revenue of $97.1 million. Previously, the company estimated revenues to be flat to up 4% relative to the prior quarter.

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