H-P hits the mark, affirms targets
By Shawn Langlois, CBS.MarketWatch.com
Last Update: 5:40 PM ET Aug. 27, 2002
SAN FRANCISCO (CBS.MW) -- Hewlett-Packard met analyst estimates with its inaugural post-merger earnings report Tuesday and also affirmed Wall Street's projections for its fourth quarter.
Shares of the computer and printer giant jumped 3 percent in after-hours trade.
The tech-laden Nasdaq-100 After Hours Indicator, a gauge of the evening activity of the index's leading stocks, moved fractionally north.
Earlier, the lowest consumer confidence reading of the year kept the Nasdaq and the Dow steeped in red ink, closing down 44 at 1,348 and off 95 at 8,824, respectively. See Market Snapshot.
H-P hits targets
Hewlett-Packard (HPQ: news, chart, profile) reported third-quarter earnings that met Wall Street targets, although sales were less than expected. The company recorded about $3 billion in charges -- $1.6 billion of it from restructuring.
The world's leading maker of PCs and printers reported a net loss of 67 cents a share, and pro forma earnings of 14 cents -- up from 11 cents last year -- if H-P had been combined with Compaq.
For the fourth quarter, H-P affirmed Wall Street estimates of $17.4 billion in sales and pro forma earnings of 22 cents a share. See full story.
Shares of H-P lost 64 cents to close at $14.21 during the regular session.
Chip moves
Intel (INTC: news, chart, profile) fell 95 cents to close at $17.18, leading Dow decliners early. CEO Craig Barrett reportedly said he expected modest sequential earnings growth in the third quarter and that he had not seen much improvement in the PC environment, as companies were still not investing.
Intel shares rebounded almost 1 percent late and will likely remain in the evening focus heading into its midquarter update next week. Check Hardware Stocks.
Elsewhere in the chip arena, Altera shares (ALTR: news, chart, profile) gained 3 percent. The chipmaker said it still expects third-quarter sales to be flat or up 2 percent from the previous quarter. Also, its Stratix device family continues to gain acceptance and design wins, according to a scheduled midquarter update. See full story.
Semtech (SMTC: news, chart, profile) was the sector's hardest hit in the extended session, off more than 13 percent. The semiconductor company hit analyst targets for the second quarter and said third-quarter gross margins are expected to remain flat with the previous period. Earnings are pegged at approximately 14 cents a share.
And Semtech is working with an unnamed customer to resolve a dispute about damages that could total $115 million. Semtech said it is cooperating fully but that subsequent tests indicate its products function reliably. See full story.
Late spotlight
Mandalay Resort Group (MBG: news, chart, profile) reported that it earned 41 cents a share in the quarter, essentially flat with the year-ago period. On an operating basis, the Las Vegas-based casino operator pocketed 51 cents a share, a penny below consensus estimates.
The stock was little changed on the news after closing down almost 4 percent at $28.41 earlier.
Sun Micro (SUNW: news, chart, profile) and Cisco (CSCO: news, chart, profile) were among Nasdaq most-actives in the regular session. Both stocks hovered in breakeven territory on Island following their 3-percent dips early. |
