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Stocks to watch Thursday
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January 9, 2002: 6:08 p.m. ET
PepsiCo affirms earnings guidance, Cigna to cut 2,000 jobs.
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NEW YORK (CNN/Money) - PepsiCo affirmed earnings guidance after the bell Wednesday while health insurer Cigna announced it is cutting 2,000 jobs.
Pepsi (PEP: Research, Estimates) affirmed its earnings projection of $1.66 per share for 2001 and its annual earnings-per-share growth targets of 13 to 14 percent.
Cigna (CI: Research, Estimates) said it would eliminate 2,000 jobs and take a $65 million after-tax charge in the fourth quarter as it realigns service operations in its employee health, life and disability benefits unit.
Satellite company Loral Space & Communications (LOR: Research, Estimates) said that it agreed to pay a $14 million fine to the U.S. government to settle a case about its role in the review of a 1996 Chinese rocket launch failure.
Loral said it had agreed to pay a civil fine of $14 million to the State Department without admitting or denying the government's charges. The Justice Department has also closed its investigation of the company, it said.
Teen-oriented clothing retailer American Eagle Outfitters (AEOS: Research, Estimates) said sales at its stores open at least a year rose 0.5 percent in December, as sales inched up despite a sluggish retail environment.
American Eagle said it expects fourth-quarter earnings of 56 cents to 60 cents a share, assuming its January results are in line with current expectations. The company reported earnings per share of 68 cents last year. Analysts polled by First Call are expecting the company to earn 61 cents per share.
Deluxe (DLX: Research, Estimates), the leading U.S. check printer, said fourth-quarter profits would beat its previous estimates, but next year's profits would be flat or only slightly higher.
Deluxe said it expected fourth-quarter earnings per share of 73 cents to 75 cents, exceeding the previously stated target of 65 cents to 68 cents. Wall Street analysts expected the firm to earn 66 cents per share, on average, according to analysts polled by First Call.
Hot Topic (HOTT: Research, Estimates), a retailer that sells music-themed apparel and gifts for teens, said its board of directors set a three-for-two split of its common stock.
The retailer also reported a 6.1 percent gain in sales at its stores open at least a year in December. Net sales in the five weeks ended Jan. 5 increased 31 percent from a year ago to $64 million from $48.9 million. 
-- from staff and wire reports
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