RealTime IT News

Microsoft, Amazon Disappoint Wall Street

Microsoft and Amazon became the latest tech bellwethers to play the Wall Street expectations game after the close on Thursday, and both came up short.

Microsoft reported quarterly revenues of $9.29 billion, well above analysts' $9 billion estimates, but pro forma earnings of 28 cents a share were a penny shy of estimates. The company's forward guidance was equally mixed. For the September quarter, Microsoft said it expects earnings of 30 cents a share — two cents below estimates — on revenues of $8.9-9 billion, which topped $8.79 billion forecasts. The stock lost about 2% after hours.

Amazon missed analysts' estimates for both earnings and revenues. Pro forma earnings of 18 cents a share missed estimates by a penny. Revenues rose 26% year-over-year to $1.39 billion, but that was well under $1.43 billion forecasts. Amazon said it expects revenues of $1.425-1.525 billion for the third quarter, in line with $1.45 billion forecasts. For the full year, Amazon said it expects sales of $6.625-6.925 billion, compared to analysts' expectations of $6.81 billion. Amazon said it plans to continue to offer free shipping despite rising costs. The stock fell 5% after hours.

Also after the close, Gateway beat estimates and announced a deal with Best Buy . DoubleClick missed estimates and warned. Broadcom , Overstock , webMethods and Tekelec beat estimates. VeriSign met estimates. Digital Insight , Foundry and Micromuse missed estimates. CA , TriQuint and Hutchinson warned.

During the day, stocks clawed back from a steep decline to finish in the green. eBay finished 6 points off its low, turning a steep decline on disappointing earnings into a 1% gain.

The Nasdaq rose 14 to 1889, the S&P 500 climbed 2 to 1096, and the Dow added 4 to 10,050. Volume was unchanged at 1.68 billion shares on the NYSE, and declined to 1.98 billion on the Nasdaq. Decliners led 19-12 on the NYSE, and 18-13 on the Nasdaq. Upside volume was 45% on the NYSE, and 68% on the Nasdaq. New highs-new lows were 25-86 on the NYSE, and 23-231 on the Nasdaq.

Qualcomm , F5 , Internet Security , Earthlink , Cirrus , Cabot Micro , Lam Research , Network Appliance and Photon surged on strong earnings. Siebel , Citrix and Digital River rose on their results.

eResearch , Sierra Wireless , Sybase and Avici fell on their reports.

AT&T slipped on news that it plans to pull out of consumer markets.

Broadvision fell on news of an SEC investigation into the company's restatement of 2001 earnings.