HP became the latest tech bellwether to report less than stellar results after the close on Tuesday.
Earnings of 23 cents a share missed estimates by 3 cents, and revenues of $17.35 billion came in shy of $17.49 billion estimates. The company’s forward guidance wasn’t much better, with expectations of 34-36 cent earnings for next quarter coming in on the low end of 36-cent analyst expectations, and $18.8-$19.1 billion revenue guidance coming in on the light side of $19.08 billion forecasts. The stock fell about 10% after hours.
“The third quarter is always tough, but we still should have done better,” CEO Carly Fiorina said in a statement. “Nevertheless, we are confident in our strategy and the actions we’re taking. We expect to deliver a strong fourth quarter with every one of our businesses profitable.”
The company said the desktop market was the toughest, and lost money because of low volumes and overly aggressive pricing, but the company promised a return to profitability for the division next quarter.
Also after the close, Network Appliance beat estimates, and Intuit
also beat estimates but delivered mixed guidance.
The broader market managed gains during the day despite weaker than expected earnings from Home Depot and a lackluster consumer sentiment reading.
The Nasdaq surged 21 to 1760, the S&P 500 rose 2 to 1002, and the Dow gained 16 to 9428. Volume rose to 1.3 billion shares on the NYSE, and 1.72 billion on the Nasdaq. Advancers led 21-11 on the NYSE, and 20-11 on the Nasdaq. Upside volume was 69% on the NYSE, and 73% on the Nasdaq. New highs-new lows were 291-29 on the NYSE, and 326-6 on the Nasdaq.
Broadcom and Flextronics
soared more than 10% on positive mid-quarter updates.
Agilent surged 8% after beating estimates, and Symantec
gained 2% despite warning.
Micron rose more than 8% on predictions of a DRAM recovery.
Motorola climbed 3.7% on a Middle East contract win.
EDS gained 3% on a HUD contract.
DoubleClick lost 3% on accounting concerns.
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