Sun Micro Stock Jumps Despite Stock Market Drop
Sun stock closed up 3-5/32 at 92-9/16 in trading on the Nasdaq despite a steep drop in the overall market.( naz dropped nearly 100)
Excluding charges, Sun reported Thursday that its earnings rose 39 percent in its fiscal first quarter to $274.8 million, or 33 cents a share. That was 2 cents above the Wall Street consensus as complied by First Call/Thomson Financial
''Sun had a terrific quarter...,'' Milunovich said.
Revenues in the quarter ended Sept. 26 jumped 25 percent to $3.12 billion from $2.49 billion in the year-ago period. Sun said its bookings were up 19 percent and that it ended the quarter with a backlog of $950 million in unfulfilled orders.
On a conference call after the earnings, Sun executives said they expected revenue growth in its second fiscal quarter to be slightly above 20 percent.
''Based on the level of backlog of Q1, you should be looking for revenues slightly north of 20 percent during Q2,'' Michael Lehman, Sun's chief financial officer, told analysts on the conference call.
Milunovich said Merrill Lynch was raising its price objective for the stock from $103 to $110.
Banc of America Securities LLC said Friday it raised its rating for Sun Micro to buy from market perform. It said in a research note that analyst Kurt King raised his earnings estimate for the second quarter to 39 cents a share from 30 cents and for the full year to $1.75 from $1.57.
''We're as bullish as ever about the long-term story,'' the research report said. ''Sun clearly has the momentum in e-commerce and the execution ability to deliver consistent results ...''
Credit Suisse First Boston and Lehman Bros. said Friday they raised their earnings estimates on Sun Micro. Credit Suisse First Boston raised its fiscal 2000 earnings per share estimates to $1.78 from $1.71, and Lehman raised its fiscal 2000 estimate to $1.73 from $1.68.
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Sun Microsystems (NASDAQ: SUNW) Date: Oct 15
Last Trade
92 9/16
Change
+ 3 5/32 (+3.53%)
Bid
92 1/2 Ask
92 9/16
Volume
028,666,7000
Prev.Close
89 13/32 Open
90 1/2
Day Range
88 3/4 - 95 1/2
Last Tick
0Down0
Avg.Volume
09,807,5000
52-week range: 24 5/8 - 99 7/16 |
