Chipmakers Are the Heroes of the Second-Quarter All-Star Team
sfgate.com
Friday, July 21, 2000
We're midway through the second-quarter earnings reporting season, and once again, the all-star roster is loaded with companies from the technology team.
``Clearly, what's driving the economy is energy and technology, the same as the first quarter,'' says Chuck Hill, research director with First Call, one of two major earnings trackers.
About half of the companies in the Standard & Poor's 500 have reported second-quarter results and so far, tech earnings are beating expectations by 9 percent, and are up 44 percent year-over-year, according to First Call.
``When all is said and done, we expect tech earnings to be up 36 percent,'' says Hill. That's even better than tech's 33 percent year- over-year gain in the first quarter.
Chip and chip-equipment companies are leading the techs. In fact, four of the companies reporting the 10 largest gains are in this category.
Semiconductor earnings are up 163 percent; First Call is expecting 133 percent when final results are in.
Chip-equipment earnings are up 250 percent, but only two high-flying companies have reported. First Call expects a final gain of 148 percent.
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