CNNfn after the bell
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May 18, 1999: 7:11 p.m. ET
Warner-Lambert predicts 30% growth for '99; Kohl's beats Street
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NEW YORK (CNNfn) - A major drug company predicted significant growth in earnings after the bell rang on Wall Street Tuesday afternoon.
Pharmaceutical titan Warner-Lambert Co. (WLA) said that based on current planning assumptions the Morris Plains, NJ-based company is on track to achieve 30 percent diluted earnings per share growth for 1999 and 20 percent diluted earnings per share grow in 2000.
The company said it expects its anticholesterol drug Lipitor to see sales of $3.3 billion in 1999 and grow to more that $4 billion in the year 2000.
However, the drug-maker warned that its diabetes drug Rezulin would probably have flat sales this year due to safety concerns. Sales of the Rezulin slipped last year after several deaths were linked to the drug. The U.S. Food and Drug Administration is deciding whether to allow the drug to be given by itself or only in combination with other diabetes drugs.
Warner-Lambert also announced a new agreement with Sankyo Co. Ltd. to co-develop and market an antidiabetic compound that is scheduled to enter clinical trials later this year.
Kohl's Corp. (KSS) beat Wall Street's expectations for its first fiscal quarter. The Menomonee Falls, Wis.-based retailer reported net income of $39.3 million or 24 cents per share, beating First Call's projection of 22 cents per share.
The latest figure compares to $26.8 million or 17 cents per diluted share in the year ago period. Net sales increased 22.3 percent to $910.3 million from $744.6 million a year ago.
Home improvement retailer HomeBase Inc. (HBI) matched Wall Street's expectations for its first fiscal quarter. The Irvine, Calif.-based retailer reported net income of $653,000 or 2 cents per diluted share, matching projections by First Call.
This figure compares with net income of $91,000 or 0 cents per share in the year ago period. This year's net income includes pre-tax costs of $1.6 million for pre-opening expenses. Sales for the 85 stores operating during the first quarter of this year totaled $365 million, a 4.7 percent increase from $348.9 million for 83 stores operating in the year ago period.
And Hadco Corp. (HDCO) beat analysts' expectations, reporting second-quarter net income of $4.6 million and diluted earnings of 34 cents per share. This figure surpassed First Call's estimate of 29 cents per share.
The Salem, N.H.-based company said the results of the prior year period are not comparable due to the acquisition of Continental Circuits Corp., which was consummated in last year's second quarter.
However, on a pro forma basis for the comparable year period, excluding all one-time charges and assuming the Continental acquisition occurred prior to the beginning of that quarter, net sales for the corporation were $226.2 million, net income was $3.3 million and diluted earnings per share was 25 cents.
--with staff and wire reports.
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