if missed fri afternoon--one mans opinion--C-Cube shares hit the skids
By Larry Barrett
January 22, 1999 12:58pm
ZDII
C-Cube Microsystems Inc. (Nasdaq: CUBE) tumbled 5 1/16, or 17 percent, to 24 5/8 Friday, one day after the digital and video chip manufacturer met analysts' estimates in its fourth quarter. C-Cube made $12.4 million, or 31 cents a share, on sales of $95.8 million.
First Call consensus pegged it for a profit of 31 cents a share in the quarter.
Friday's slide is a bit mysterious considering C-Cube did grow its sales by 10 percent from the third quarter and 6 percent versus the year-ago quarter when it made $11.5 million, or 30 cents a share, on sales of $90.1 million.
"I think we're seeing people sell on the news," said Elias Moosa, an analyst at BancBoston Robertson Stephens. "There might be some disappointment that it didn't beat the estimates like everyone else seems to have done, but the stock got a little ahead of itself too."
C-Cube shares raced up to a 52-week high of 30 7/8 in the days leading up to the earnings announcement after falling to a low of 13 1/4 in September.
Six of the eight analysts following the stock maintain either a "buy" or "strong buy" recommendation.
First Call consensus expects C-Cube to make 33 cents a share in the first quarter of 1999 and $1.31 a share for the year.
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