Eye On Stocks For Tuesday, March 8

[TayOO]

Eye On Stocks For Tuesday, March 8

 

Texas Instruments (nyse: TXN - news - people ) shares fell more than 3% in extended trading after the company said first-quarter sales would be lower than Street estimates. The lowered sales guidance was attributed to lower-than-expected demand for digital light processing (DLP) products used in high-end TVs, Texas Instruments said in a statement. The company expects first-quarter earnings to range from 22 cents and 24 cents per share and revenue between $2.91 billion and $3.03 billion. Ahead of the update, analysts polled by Thomson First Call forecast first-quarter earnings of 24 cents per share on revenue of $3.04 billion.

Xilinx (nasdaq: XLNX - news - people ) will provide an update for the fourth quarter tomorrow afternoon. Analysts currently estimate fourth-quarter earnings of 18 cents per share and sales of $367 million. A.G. Edwards upgraded the chip maker in February to "buy" from "hold" based on an improving inventory outlook. "We think Xilinx will continue to work through the weakness in telecommunications infrastructure and industrial demand for a quarter or two," the firm said. "With the correction in end market inventories essentially complete by the end of the March 2005 quarter, we expect rising semiconductor demand will drive Xilinx's top-line higher through 2005." A.G. Edwards has a price target of $36 for Xilinx.

Millennium Pharmaceuticals (nasdaq: MLNM - news - people ) said it will receive about $40 million in milestone payments from two marketing partners. The company said it will receive $19.9 million for its Integrilin anti-blood clot injection from European marketing partner GlaxoSmithKline and $20 million from Johnson & Johnson (nyse: JNJ - news - people ), which is co-marketing Millennium's Velcade cancer treatment. Millennium shares were up slightly in after-hours trading.

Biogen Idec (nasdaq: BIIB - news - people ) said it entered into a stock buyback plan to repurchase up to four million shares, according to documents filed with the Securities and Exchange Commission. The company said the repurchases will take place between May 2 and July 31. Biogen Idec's current buyback plan is authorized for the repurchase of up to 20 million share.

Citizens Communications (nyse: CZN - news - people ) will report fourth-quarter results tomorrow morning. The telecommunications firm is expected to report earnings of 12 cents per share and revenue of $542 million. Standard & Poor's Equity Research recently maintained a "hold" rating and $14 price target for Citizens. "We think top-line is likely to be hurt by weaker access revenues, amid line losses and lower rates, and await details from Citizens Communications on the impact of wireless and cable substitution in its mostly rural markets," it said. "We project Citizens' EBITDA [earnings before interest, taxes, depreciation, amortization] margins of 52% will remain among the telecom industry's best, and that it will generate sufficient cash flow to support its dividend payout, currently yielding about 7.6%."