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Despite Q2 Warnings, Analysts Say Growth May Be Around Corner; Watch For Effects Of Tax Cut; Tech warnings are down, perhaps a sign spending in the sector is improving.(A)

Investor's Business Daily

| July 03, 2003 | Keri, Jonah | COPYRIGHT 2003 Investor's Business Daily, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Byline: JONAH KERI

PeopleSoft, Westwood One and Baxter International have joined the swelling ranks of firms preannouncing or telegraphing earnings as the second quarter winds to a close.

Investors, meanwhile, try to gauge the market's profit strength.

After Tuesday's close, radio programmer Westwood One said it expects second-quarter earnings and revenue to fall year over year due to soft ad sales. Fellow radio stock Emmis set the tone earlier in the day, when it missed fiscal first-quarter profit estimates.

Baxter, which makes treatments for cancer, kidney disease and other maladies, said it will close 26 facilities, cut 2,500 jobs and miss second-quarter and full-year 2003 earnings views due to slow growth in its bioscience business.

On the flip side, enterprise software firm PeopleSoft said before Wednesday's open it expects to beat second-quarter profit estimates as it tries to fend off a hostile takeover bid by Oracle.

The mixed bag of preannouncements has left market watchers on guard. With the market coming off 3 1/2 months of heady gains, various analysts and financial media say a steep decline is on the way, especially for techs. Those skeptics say recent price gains must be justified by profit growth.

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