Stocks to watch Friday
|
|
September 30, 1999: 6:57 p.m. ET
Eli Lilly gets FDA nod for osteoporosis drug; Sipex, Cidco, unveil profit warnings
|
NEW YORK (CNNfn) - Eli Lilly Corp. received government approval to sell a drug that treats osteoporosis -- a disease that thins bones and makes them brittle, the drug maker announced after the bell Thursday. Circuit maker Sipex Corp. and telephone accessories producer Cidco Corp., meantime, both unveiled profit warnings.
Eli Lilly Corp.
The U.S. Food and Drug Administration said Eli Lilly Corp.'s (LLY) drug Evista can now be used to treat, not just prevent, osteoporosis, the company said. The FDA granted approval to sell the drug as a treatment for women with osteoporosis who have already gone through menopause, an agency spokeswoman told Reuters. The drug has been sold as a preventative medication in the U.S. since January 1998. Evista generated $66.6 million in sales for Eli Lilly in July, according to the company. Eli Lilly was at 64-1/2 after hours. The stock gained 3/4 during the regular session.
MGM Grand
BancBoston Robertson Stephens analyst Harry C. Curtis raised his estimates for MGM Grand Inc. (MGG), boosting his 1999 estimate to $2.15 a share from $1.97. Analysts polled by First Call Corp. currently expect the company to post 1999 earnings per share of $1.97. Curtis also reiterated his "buy" rating on the stock. MGM Grand owns and operates the MGM Grand, its 5,005-room flagship property in Las Vegas, and New York-New York, a 2,000-room property also in Las Vegas. Curtis is maintaining his per-share estimate of $2.50 for 2000. Consensus estimates are currently for $2.25 a share.
Sipex Corp.
Sipex Corp. (SIPX) said it expects to earn between 7 and 9 cents a share for the third quarter, well below the 15-cent-a-share number the company was expected to post, according to the average estimate of analysts polled by First Call Corp. The company earned 15 cents a share in the year-earlier period. Revenues for the quarter, which ends Oct. 2, are expected to be between $13.5 million and $14 million. Fewer than expected parts from its Taiwan supplier slowed the number of deliveries it made during the quarter, hurting sales, the company said.
Cidco Corp.
CIDCO Inc. (CDCO) said it expects to post third quarter earnings of between 1 cent and 3 cents a share, below the 7-cent average forecast by analysts in a First Call survey. Revenues for the third quarter are estimated to be around $37 million, less than analysts' estimates of $41.7 million for the quarter, the company said. The company intends to release final results for the third quarter after the close of the market on Oct. 20. A late-quarter East coast marketing program derailed by Hurricane Floyd and a delay in product shipments caused by lack of parts due to the Taiwan earthquake dented quarterly earnings, the company said.
Apex Corp.
Apex Inc. (APEX) also warned that its year-end profit probably won't meet analysts' expectations. The computer switch producer said it expects revenue and net income for the quarter ending Dec. 31 to be negatively affected by the likely loss of Hewlett-Packard Co. (HWP) as one of its clients. The company gave no indication of what it expects its profits to be; analysts' polled by First Call currently anticipate fourth-quarter profit of 29 cents a share. Based on recent correspondence, Apex said it expects HP's purchases of its private-label products will cease on or about Oct. 31. HP represented 10 percent of Apex's sales for the six months ended July 2.
BroadVision Inc.
BroadVision Inc. (BVSN) said its board of directors approved a 3-for-1 stock split. Shareholders of record Oct. 11 will each receive 3 common shares, the company said. The stock split will increase the number of shares of common stock outstanding from approximately 25.77 million shares as of Sept. 10 to approximately 77.32 million shares. BroadVision creates and monitors secure e-commerce applications for Internet retailers.
Musicland Corp.
Musicland Corp. (MLG) said its board of directors has authorized the repurchase of up to 3 million of the company's 35.5 million common shares on the open market or in negotiated transactions over the next two years. Musicland also said it has entered into an agreement to replace its existing credit facility with a standby $25 million secured facility. The new credit agreement eliminates the restriction prohibiting a stock repurchase. Musicland is specialty retailer of home-entertainment software products.
Columbia Sportswear Co.
Columbia Sportswear Co. (COLM) said it will shut down its manufacturing and distribution facility in Chaffee, Missouri, eliminating 185 positions and resulting in a third-quarter pre-tax charge of $1.5 million, the company said. Columbia said the closure will help it reduce costs by consolidating its production on the West coast rather than having part of it located in the mid-West, the company said. The plant is used to manufacture and distribute headwear and fleece apparel for Columbia Sportswear. Columbia will continue to operate the plant through Spring 2000.
Check S&P futures trading on Globex
Read the latest story from the Asia markets
Friday's outlook
Numbers on car and truck sales, personal income and consumption and construction spending will garner investors' attention Friday as the market braces itself for the Oct. 5 meeting of Federal Reserve policy makers.
Check S&P futures trading on Globex
But the big report of the day Friday will be the National Association of Purchasing Management's index of manufacturing, to be released at 10 a.m. Eastern time. Analysts polled by Reuters anticipate the index rose slightly to 54.3 in September from 54.2 in August. A reading higher than 50 indicates manufacturing activity is expanding, while a reading below 50 typically suggests slowing output.
No major S&P 500 companies are expected to report earnings Friday.
|
|
|
|
|
|