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Technology Stocks : All About Sun Microsystems -- Ignore unavailable to you. Want to Upgrade?

To: trouthead who wrote (15334)	4/9/1999 8:00:00 PM
From: High-Tech East	Read Replies (1) \| Respond to of 64865

..... for what it is worth ..... CBS MarketWatch - April 9, 1999: the Wall Street Journal reports that Sun Microsystem's net income for this quarter is "seen growing 24 percent, with results driven by its server business." This is for Q3FY99 which ended March 31, 1999, and for which, Sun reports earnings after the market's close on Thursday, April 15. other facts and my personal comments ..... (1) First Call's most recent earnings estimate for Sun, of March 16, indicates that 20 different brokers estimate Sun's EPS, on a median basis, will be $.70 - with a range of $.66 to $.77 (2) This compares to actual EPS of Q3FY98 of $.59 ..... so if Q3FY99 is announced at .70, then earnings growth will have been 18.64 % ..... if Q3FY99 is announced at .73, then earnings growth will have been 23.73 % ..... or rounded to 24% which the WSJ is estimating if Q3FY99 is announced at .77, then earnings growth will have been 30.51 % ..... (3) In my opinion, if SUNW reports $.73, and "beats the street" by .03 or 4.3% (.03 divided by .70), we should be in good shape. (4) What the price of the stock will be next Friday, April 16th, is difficult to even guess at. Among other things, it depends on whether the price runs up next week prior to earnings release and also how much of the positive earnings are already priced into the stock. (5) However, I would guess, that if SUNW reports .73, and there are no other major or negative surprises in the post release news conference, that SUNW might be between $80 - $85 (maybe even $90) a share when the markets close on April 16. (6) Based on the late day warning from Compaq today, it may well be that they are hurting, at least in part, from competition from SUNW in high-end servers. KenW aka high-tech east