quote.bloomberg.com
Intel, Sun Micro Expected to Clarify, Test Rebound (Update1)
By Dan Goodin
New York, March 6 (Bloomberg) -- Intel Corp. and Sun Microsystems Inc. investors say they expect to glean clues about how a possible economic recovery may affect the computer industry, as both companies hold conference calls tomorrow to update investors on financial progress in the quarter.
Intel may say revenue is coming in near the midrange of its forecasts as demand for personal computers picks up, analysts said. Sun isn't likely to go beyond previous forecasts that sales will rise ``slightly'' from last quarter as businesses continue to put off large information technology purchases.
The separate calls come after the Federal Reserve recently predicted that the economy will grow by as much as 3 percent in 2002, leading some analysts to conclude the U.S. recession may be over. Oracle Corp., the world's largest database software maker, Friday said fiscal third-quarter profit missed forecasts, suggesting the recovery could be slow for hardware companies.
``Coming on the heels of the Oracle announcement, people are going to watch these carefully,'' said Louis Kokernak, senior equity strategist at Martin Capital Advisors, which manages $55 million and owns Intel and Sun shares. ``If I hear something good out of Intel and/or out of Sun, that would be a good portent.''
Intel shares have gained 4 percent since the beginning of the year and are up about 8 percent from 12 months ago. Sun shares have lost 26 percent this year and 57 percent over the past year. That compares to the Standard & Poor's 500 Index, which is little changed since Jan. 1 and fell 8.3 percent over the past year.
Intel shares fell 4 cents to $32.66 in late morning trading. Sun shares lost 16 cents to $8.93.
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