Motorola fell more than 2% Monday after the cell phone giant warned of slowing sales.
Motorola said it now expects second quarter earnings to come in at breakeven, four cents less than analysts were expecting, and revenues of $6.0-6.2 billion will come in under $6.44 billion estimates.
The company also lowered full-year guidance, citing lower-than-expected sales in Asia because of SARS and excess inventories. Motorola also said that an earthquake in Sendai, Japan temporarily disrupted manufacturing and will add to second-quarter costs. One bright spot is that business in other parts of the world is on track.
With 20 million handsets in inventory, Motorola also raised concerns that average selling prices will decline.
Investors won’t have to wait long for another view of the industry’s health: Nokia will give its mid-quarter update tomorrow morning.
The broader market sold off after Freddie Mac plunged on an accounting scandal and a management purge.
The Nasdaq fell 23 to 1603, the S&P 500 lost 11 to 975, and the Dow fell 82 to 8980. Volume declined to 1.31 billion shares on the NYSE, and 1.86 billion on the Nasdaq. Decliners led by 22-10 on the NYSE, and by 20-11 on the Nasdaq. Downside volume was 82% on the NYSE, and 77% on the Nasdaq. New highs-new lows were 267-8 on the NYSE, and 146-4 on the Nasdaq.
After the close, Oracle moved up its earnings date from June 17 to June 12, and said PeopleSoft
has threatened to sue because of Oracle’s hostile takeover bid. Netflix
rose after reaffirming guidance.
During the day, Veridian soared 26% on news that it will be acquired by General Dynamics
.
QLogic and Adobe
fell on downgrades.
Systems and Computer Tech rose 4.3% on speculation that it could benefit from a PeopleSoft-Oracle merger.
Microsoft , up 0.3%, is making another push into cable TV software.
Corel , up 7.4%, will be acquired by a VC firm.
And a congressman wants the SEC’s Worldcom settlement overturned.
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