RealTime IT News

Intel, Yahoo Fail To Inspire

Intel , Yahoo and Motorola reported results largely in line with expectations after the close on Tuesday, but all three sold off in after-hours trading.

Yahoo reported second-quarter earnings of 13 cents a share, in line with analysts' estimates, but net revenues (after traffic acquisition costs) of $875 million were below $883 million forecasts. Yahoo's third-quarter revenue guidance of $880-$930 million was on the light side of forecasts, and investors sent Yahoo shares 10% lower after hours.

Intel's earnings and sales came in just above forecasts at 33 cents a share and $9.23 billion, and third-quarter revenue guidance of $9.6-$10.2 billion compared favorably to $9.76 billion expectations. Gross margins slipped to 56.3% in the quarter, but the chip giant forecast 60% margins for the third quarter, and Intel also boosted capital spending to $5.9 billion, $100 million above the top of the previous range. Despite the stellar results, Intel shares lost 3% after hours.

Motorola beat Wall Street estimates by a penny with 26-cent earnings, and sales of $8.83 billion were above expectations. The company also raised guidance, but that stock too lost 3% after hours.

Also after the close, Juniper , Novellus and Seagate beat estimates.

Stocks surged during the day on strong results from IBM and Merrill Lynch .

The Nasdaq surged 28 to 2173, the S&P rose 8 to 1229, and the Dow gained 71 to 10,646. Volume rose to 2.06 billion shares on the NYSE, and 1.71 billion on the Nasdaq. Advancers led 22-10 on the NYSE, and 20-10 on the Nasdaq. Upside volume was 65% on the NYSE, and 80% on the Nasdaq. New highs-new lows were 222-18 on the NYSE, and 150-22 on the Nasdaq.

Lucent fell 3.5% after reporting 5-cent earnings, a penny ahead of expectations, on $2.34 billion in sales.

HP slipped 1.6% after announcing a massive restructuring.

Checkpoint , FileNet and CDW surged on their earnings reports, while Travelzoo fell on its results.

GuruNet soared on plans to trade on the Nasdaq under the symbol "ANSW." The company will change its name to Answers Corp.