NEW YORK (CNN/Money) -
Shares of Fleming Cos. sank Tuesday after the grocery distributor warned that its fourth-quarter and full-year profit will be below Wall Street estimates due to a weak supermarket business and the bankruptcy of Kmart, one of its largest customers.
Pioneer-Standard shares moved higher after Arrow Electronics said it will buy Pioneer's industrial division for $285 million in cash.
Tuesday's losers
Fleming Cos (FLM: down $1.55 to $4.97, Research, Estimates). The grocery distributor said it expects a fourth-quarter profit of 10 to 12 cents a share and a profit of 78 cents to 80 cents in 2003. Wall Street expected the company to earn 31 cents a share in the fourth quarter and $1.02 a share in the year, according to Thomson First Call. Fleming cited weak supermarket business and Kmart's bankruptcy.
Photon Dynamics (PHTN: down $5.85 to $20.80, Research, Estimates). The chip-testing equipment maker said it is postponing the release of its fiscal first-quarter financial report until the last two weeks of January.
Overture Services (OVER: down $2.64 to $28.40, Research, Estimates). Shares of the Internet advertising company fell after the firm said its fourth-quarter distribution costs will be slightly higher than expected.
Tuesday's winners
Pioneer-Standard (PIOS: up $2.42 to $11.35, Research, Estimates). Electronics distributor Arrow Electronics Inc. said Tuesday it will acquire substantially all of Pioneer's Industrial Electronics Division for about $285 million in cash.
Intel (INTC: up $0.20 to $17.58, Research, Estimates). The No. 1 chipmaker is expected to report fourth-quarter earnings of 14 cents a share after the closing bell Tuesday, down from 15 cents a year earlier, according to the consensus of analysts surveyed by First Call.
Palm (PALM: up $0.71 to $19.37, Research, Estimates). The handheld computer maker said late Monday it plans to build new handwriting recognition technology, a decision made after a long-standing patent infringement battle with office equipment maker Xerox (XRX: Research, Estimates).
Ericsson (ERICY: up $0.88 to $9.90, Research, Estimates). Singapore Telecommunications said it will award a multimillion-dollar high-speed third-generation mobile network contract by the middle of this year and the telecom company Ericsson is among the three finalists. The other finalists are Nokia (NOK: Research, Estimates) and a group made up of Siemens, NEC (NEC: Research, Estimates) and Itochu.
Micromuse (MUSE: up $0.71 to $5.53, Research, Estimates). Prudential upgraded the telecom software firm to "buy" from "hold" and raised its price target on the stock to $8 from $2.
Barr Labs (BRL: up $2.84 to $76.92, Research, Estimates). The generic drug firm said it expects to earn 92-to-94 cents per share for its fiscal second quarter, ended Dec. 31, up from a previous forecast of 82 to 87 cents. Wall Street expects the company to earn 86 cents a share in the period, according to First Call.
-- from staff and wire reports
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