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Technology Stocks : EMC How high can it go? -- Ignore unavailable to you. Want to Upgrade?

To: hamsandwich who wrote (12585)	4/11/2001 10:52:05 AM
From: jhg_in_kc	Read Replies (1) \| Respond to of 17183

EMC warns of earnings miss; stock bounces at open April 11, 2001 10:16 AM ET by Michelle Rushlo from 35 to 20...NOT GOOD. -------------------------------------------------------------------------------- Storage giant EMC (EMC: +1.61, 36.01), once thought to be among the safest information technology harbors, announced before the opening bell this morning that it did not meet analysts' expectations for the first quarter and lowered expectations for the year. Investors initially didn't seem to be bothered by the news. The stock was up nearly 6 percent in morning trading. The Massachusetts-based company announced preliminary results for the quarter, saying it expects to report 18 cents per share on revenue of $2.35 billion. Analysts surveyed by First Call/Thomson Financial had expected EMC to earn 20 cents on $2.45 billion in revenue. EMC president and CEO Joe Tucci said revenue was softer than anticipated in the first quarter because some customers hesitated in the face of the economic slowdown. "We found some customers reluctant to spend budgeted IT money, given the abundance of negative economic news," he said in a written statement. In addition to announcing preliminary first quarter results, EMC officials also reduced their expectations for the full year today. They say they now expect revenue to grow about 20 percent for the year, or to roughly $10.6 billion. Early in the year, company executives said they expected revenue to grow 35 percent for the year to $12 billion. In February, the company conceded growth could be as low as 25 percent, but today's estimate takes that number down even further. The company is scheduled to report its final first quarter results on April 19

To: hamsandwich who wrote (12585)	4/11/2001 10:57:44 AM
From: JakeStraw	Respond to of 17183

>>How can Joseph justify that? "A closer look at Joseph's reasoning behind the upgrades is less convincing, however. He does not see fundamentals improving. He does not say orders will get better. He does not say spending will pick up significantly. He simply says the sector cannot get any worse, so stocks will recover. "Conditions at many of our companies are the worst that even old-timers, who have been through scores of downturns, have even seen. If it cannot get worse, it will get better. If it gets better, the stocks will begin to reflect that." thestreet.com