Adobe beat Wall Street estimates after the close on Thursday, while palmOne
met estimates.
Investors didn’t appear happy with either company’s results, however, as both stocks traded lower after hours.
Adobe’s earnings of 44 cents a share beat estimates by two cents, and revenues rose 19.8% to $429.5 million, ahead of forecasts by more than $11 million. The company said it expects February quarter results of 45-48 cents a share on revenues of $435-$455 million, on the high end of estimates. Despite the stellar results, the stock slipped 2% after hours.
palmOne’s earnings of 53 cents a share met estimates. Revenues were up 38.7% to $376.2 million, $3 million better than expected. Gross margins were a little weaker than expected. Investors were apparently looking for more from the high-flyer and sent PLMO shares 9% lower after hours.
Also after the close, 3Com missed estimates.
Stocks were mixed during the day on weak housing data and strong manufacturing and jobless claim reports. News of Johnson and Johnson’s acquisition of Guidant
boosted blue chips, while tech stocks were weighed down by news that the Federal Accounting Standards Board will require stock options to be deducted from earnings after June 15, 2005.
The Nasdaq fell 16 to 2146, the S&P 500 slipped 2 to 1203, and the Dow rose 14 to 10,705. Volume rose to 1.79 billion shares on the NYSE, and 2.4 billion on the Nasdaq. Decliners led 21-11 on the NYSE, and 19-12 on the Nasdaq. Downside volume was 55% on the NYSE, and 68% on the Nasdaq. New highs-new lows were 248-17 on the NYSE, and 143-16 on the Nasdaq.
News of a merger between Symantec and Veritas
was greeted with skepticism, as investors sent shares of acquirer Symantec 8% lower on the news, while Veritas shares finished down slightly.
McAfee fell 10% on anti-spyware competition from Microsoft
.
Gateway lost 9% after the company said it expects a 15% decline in first-quarter sales.
Apple rose 2% on reports of strong iPod and iTunes sales.
Apollo fell 7% on its results.
Arbinet Thexchange rocketed 61% in its debut.
