Analysts

WASHINGTON -- The U.S. trade deficit rose to $10.23 billion in May, government figures showed yesterday.Analysts said the deficit is likely to grow in the months ahead because the American economy is stronger than those of its major trading partners.Imports rose 1.0 percent to set a record for a fourth consecutive month, paced by a surge of goods from China, the Commerce Department reported. Meanwhile, exports fell for the second month in a row, leaving the overall deficit 17 percent higher than April's revised $8.747 billion shortfall.

Shares of Ciena Corp. jumped 18 percent yesterday, hitting a new peak as Wall Street digested the news that the Linthicum-based telecommunications equipment company had far exceeded all Wall Street's profit expectations during its second quarter as a public company.Ciena bolted up $7.125 to $46 yesterday on trading of almost 3.4 million shares. The trading increased the company's total value to more than $4.4 billion -- less than a year after Ciena sold its first products and four months after it went public.

Powered by strong sales in its tool divisions, Black & Decker Corp. announced record third-quarter earnings yesterday, beating analysts' expectations and delivering a long-awaited stock spike. Net earnings for the Towson-based toolmaker's third quarter that ended Oct. 1 were $86.3 million, compared with $75.3 million for the third quarter last year. Earnings per share increased 21 percent to $1.03 per share. Analysts estimated the company's profit at $1.01 per share. Black & Decker's stock, which has fallen since its high of $52.25 in December, closed at $30.63 yesterday, up $2.19.

A planned $1.5 billion redevelopment of Midtown Baltimore's State Center complex came under harsh criticism Thursday from legislative analysts who told lawmakers that the current public-private deal "is not in the best interest of the state." In two afternoon briefings, for the Senate and House of Delegates budget committees, nonpartisan analysts questioned the viability of the State Center expansion, arguing that it is based on excessively rosy assumptions of commercial and housing demand in the city.

USF&G Corp. has started to win over the investment analyst community as another brokerage house has upgraded its rating of the Baltimore-based insurance holding company's stock.Alex. Brown & Sons Inc., citing management's "significant progress in restructuring this troubled insurer," raised its recommendation this month to "buy" from "hold" on the company's common stock and issued a "strong buy" rating on USF&G's cumulative convertible preferred stock series C.Alex. Brown analyst Ellen Barzilai said her company had been working on the new rating for some time.

Hechinger Co. has been silent since it announced three weeks ago today that it is negotiating the sale of the company for $3 a share, but analysts expect the company can't remain mum much longer.Failure to say something soon, they said, will hurt Hechinger even more by lowering employee morale and making customers hesitant and vendors anxious."How long do you string people on?" said Don Longo, editor of the National Home Center News, an industry trade publication. Store managers and employees can't feel very good about their jobs, he said.

Jos. A. Bank Clothiers Inc. reported yesterday a 45 percent jump in fourth-quarter profit, capping a record year that exceeded analysts' estimates. Net income in Bank's fiscal 2002 fourth quarter, which ended Feb. 1, was $6.4 million, up 45 percent from the $4.4 million earned in the comparable period the year before, the company said. Net income per share was 89 cents, up increase of 27 percent, from 70 cents reported for the corresponding quarter in 2001. Sales were $77.9 million, up 15.8 percent, from $67.3 million reported for the fourth quarter of fiscal 2001, the company said.

NEW YORK -- Modest but widespread improvement in the overall economy played a pivotal role in strong core results reported yesterday by CSX Corp., a Virginia-based transportation company.Speaking before more than 100 security analysts in New York, the company's chief executive, John Snow, said gains in traffic, "while not stupendous, were very strong and very broad. We are coming out of the recession; it's slow but steady. There has been talk of a triple-dip recession. We don't see that."Adjusted for special charges and special gains, the company's second-quarter earnings rose to $128 million, or $1.25 a share, from $91 million, or $.91 a share.

Sylvan Learning Systems Inc. reported yesterday record earnings of $11.4 million, or 21 cents a share, for the second quarter, slightly better than analysts' predictions.For the same quarter of last year, the Baltimore educational and testing services consultant reported a net loss of $1.5 million, or 3 cents a diluted share, which included a one-time charge of $8.9 million relating to an acquisition.Net revenue for the three months that ended June 30 increased 49 percent, to $148.5 million from $99.3 million, in the second quarter last year.

Propelled by an increase in deposits, fees and commercial loans, Provident Bankshares Corp. saw its fourth-quarter profit increase by 9 percent and beat analysts' estimates, the Baltimore-based company said yesterday. The parent of Provident Bank reported net income of $12.6 million for the three months that ended Dec. 31. Earnings per share were 47 cents, up from 42 cents in the fourth quarter of 1999. Analysts, on average, were expecting earnings per share of 44 cents. "The theme for the fourth quarter was that we're back on track, and the theme this quarter is that we've built up some speed here," said Peter M. Martin, chairman and chief executive officer.