Novell's Stock Rebounds Amid High Hopes For Its 3rd Quarter
Dow Jones Online News, Tuesday, August 10, 1999 at 18:58
NEW YORK -(Dow Jones)- In a down tech stock market, shares of software company Novell Inc. rose 7.3% Tuesday, rebounding from Monday's losses, but analysts were at a loss to pin down the rise.
The rise in its stock price comes during a sensitive time for Novell, which is slated Aug. 19 to report results for its third fiscal quarter ended July 30.
The mean estimate of analysts surveyed by First Call/Thomson Financial is for the company to report earnings of 13 cents a share. In the year-ago period, Novell earned seven cents a share.
The company has been reaping the benefits of a refreshed product strategy and is now turning its attention to raising its profile through increased marketing, according to Gruntal & Co. analyst Vivek Rao.
"The quarter came in very solid," said Bob Lam, an analyst with Bear Stearns & Co., whose own forecasts are in line with the consensus estimate, although he said the company might actually have beaten the number.
Despite the positive outlook, Novell's stock has taken it on the chin along with the broader tech market, declining 23% since it reached its 52-week high of $31.188 on July 19. Novell spokesperson didn't immediately return a call for comment.
In Nasdaq trading, Novell (NOVL) closed Tuesday at $24, up $1.625, or 7.3%, on volume of 6.2 million shares, compared to average daily volume of 4.1 million shares. Copyright (c) 1999 Dow Jones & Company, Inc.
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