Jabil and Palm
reported quarterly results that exceeded Wall Street expectations late Tuesday, but investors had differing reactions to the reports.
Palm rose 5% after hours — on top of a 3.5% gain during the day — on results and guidance that beat expectations.
Earnings of 47 cents a share beat estimates by four cents, and sales rose 18% to $444.6 million, $4 million ahead of forecasts.
Palm predicted February quarter sales of $370-$375 million and earnings of 31 to 33 cents a share, well ahead of forecasts.
Investors will get a sense of how much Research in Motion’s patent troubles have benefited Palm when RIM reports its quarterly results Wednesday night.
Jabil’s earnings of 44 cents a share on a 31% jump in sales handily beat estimates. February quarter earnings guidance was a little light, but the company’s sales guidance and full-year outlook were better than expected. Still, the stock lost 3% in after-hours trading.
Stocks ended slightly lower Tuesday despite solid housing and building reports and tame wholesale inflation. A new 18-year low in shares of GM weighed on the Dow.
The Nasdaq lost a third of a point to 2222, the S&P 500 gave up a fraction to 1259, and the Dow fell 31 to 10,805. Volume fell to 1.99 billion shares on the NYSE, and 1.74 billion on the Nasdaq. Advancers led by a few shares on the NYSE, while decliners led 16-13 on the Nasdaq. Downside volume was 56% on the NYSE, and 55% on the Nasdaq. New highs-new lows were 60-149 on the NYSE, and 62-84 on the Nasdaq.
Nextel Partners rose 6% on a takeover offer from Sprint Nextel
.
Neon soared 41% on a buyout offer from Progress
.
Sycamore fell 8.5% on a Citigroup downgrade.
And Buy.com postponed its return to the public markets, citing unfavorable market conditions.
