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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.