Finally, a tech bellwether delivered results that didn’t disappoint Wall Street.
IBM reported results after the close on Thursday, and while investors didn’t turn handstands, at least they bid the stock modestly higher.
Big Blue’s earnings of $1.16 a share topped analysts’ estimates by four cents. Revenues of $23.15 billion came in slightly below $23.33 billion forecasts, but given the steady string of disappointing results released so far this month, the numbers were good enough.
Services revenues of $11.327 billion were slightly below forecasts, but gross margins of 36.8% were slightly ahead. IBM also reaffirmed full-year guidance. The stock climbed about 1% in after-hours trading.
Also after the close, PMC-Sierra reported in-line results and guidance. Netflix
missed estimates, Rambus
raised guidance, and Lexar
missed estimates and warned.
Stocks fell once again during the day despite reports showing tame inflation and strong manufacturing activity. Nokia plunged more than 12% after warning.
The Nasdaq slipped 2 to 1912, the S&P 500 lost 4 to 1106, and the Dow fell 45 to 10,163. Volume declined to 1.41 billion shares on the NYSE, and 1.67 billion on the Nasdaq. Decliners led 17-14 on the NYSE, but breadth was even on the Nasdaq. Downside volume was 60% on the NYSE, and 54% on the Nasdaq. New highs-new lows were 111-44 on the NYSE, and 34-114 on the Nasdaq.
Apple Computer and SanDisk
were two rare standouts, soaring on better than expected results.
QLogic jumped 6% despite coming in light on revenues.
Advanced Micro Devices lost 5.6% despite in-line results, while Cypress
and Fairchild
climbed on their results.
The IPO of Phase Forward received a warm welcome.
eBay slipped on music download plans.
