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Wednesday stocks watch
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July 11, 2000: 7:19 p.m. ET
Biogen results beat Street; Pentair sees 2Q shortfall; P&G lifts dividend
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NEW YORK (CNNfn) - After the bell on Tuesday, Biogen reported a second-quarter profit that outpaced estimates, while manufacturer Pentair Inc. warned that its second-quarter earnings will likely fall short of analysts' predictions.
In addition, bellwether Internet media company Yahoo! reported second-quarter operating earnings of 12 cents a share, beating analysts' predictions, and Pharmacy chain Rite Aid reported a much wider-than-expected quarterly loss.
Market watchers will get a breather from major economic reports on Wednesday, but on Thursday the Labor Department is scheduled to release the number of first time claims for unemployment insurance for the week ended July 8.
Biogen Inc.
Biopharmaceutical company Biogen reported second quarter net income of $72.1 million, or 47 cents a share, up from $43.4 million, or $0.28 per share, one year ago.
Driven by strong usage of its product Avonex, which treats the disease multiple sclerosis (MS), Biogen posted results that beat Wall Street analysts estimates of 42 cents a share. Revenue for the quarter was $230.5 million, up from $188.9 million last year.
"The market for MS treatments continues to expand, led by Avonex, with its unsurpassed convenience and efficacy (and) Avonex remains the leader both in terms of number of patients and sales volume," said James Mullen, Biogen's president and chief executive officer. "Total Avonex sales in the second quarter were $190 million up from $145 million in second quarter 1999."
Shares of Biogen (BGEN: Research, Estimates) eased 1/16 to 70 on Tuesday.
Procter & Gamble
Consumer products maker Procter & Gamble declared an increase in its quarterly dividend on its common stock to 35 cents a share from 32 cents a share. The move lifts the company's annual dividend rate to $1.40 per share from $1.28 a share.
This marks the 45th consecutive fiscal year in which per share dividends paid by P&G on its common stock will have increased. The company said it has been paying dividends without interruption since 1890.
Shares of Procter & Gamble (PG: Research, Estimates) fell 5/16 to 55-1/8 on Tuesday.
Pentair
Manufacturer Pentair Inc. said it expects its second-quarter profit to fall short of analysts' predictions.
Earnings per share for the quarter, at around 75 cents a share, will be up 14 percent over the same period last year, but will be below the 90 cents a share expected by Wall Street analysts, the company said.
"With the delay of our initiatives in the tools and equipment businesses, we are now looking at about $.75 in second quarter EPS and roughly $3.25 in EPS for the full year 2000," said Winslow Buxton, Pentair chairman and chief executive.
"We are also taking a prudent look at Year 2001 and now estimate EPS of about $4.00, which would be in line with our long-time standard of delivering 20 per cent EPS improvement, although below the $4.28 consensus of analyst estimates," he said.
"The delay in benefits is isolated to a single operating group," Buxton said. "It is largely a product of our ongoing efforts to consolidate the tools and equipment businesses into more efficient units and to expand and add to their capability. It does not reflect any overall market weakness or the potential of our businesses to meet our expectations for long-term growth and viability. We simply underestimated the time required to implement a complex program of strategic initiatives."
Shares of Pentair (PNR: Research, Estimates) fell 1/8 to 35 on Tuesday.
ConMed Corp.
Medical instruments maker ConMed Corp. said its second-quarter profit would fall well below Wall Street expectations due in part to the loss of a contract in its patient care business and the cyclical sales patterns of its powered surgical instrument line, which it acquired in 1999.
ConMed said it sees its operating earnings falling in a range between 27 cents and 30 cents per share, down from 43 cents in the year-ago period. Additionally, sales are forecast at $97 million, $5 million to $6 million below expectations, the company said.
According to First Call, Wall Street analysts expected the company to report a profit of 51 cents per share.
Additionally, ConMed said it will take a one-time $1.5 million charge from replacing some of its sales force in the arthroscopy business, which will drag net earnings down to a range of 21 cents-to-24 cents per share.
ConMed's shares closed down 1/4 at 25-9/16 on the Nasdaq.
After-hours quotes on CNNfn
Check S&P futures trading on Globex
 
-- from staff and wire reports
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