Apple and eBay
benefited from better than expected results after the close on Wednesday, but AMD
shares got battered on worries about the company’s price war with Intel
AMD was the story of the night, its shares tumbling 10% on concern about falling margins.
The company’s sales were up 32% to $1.33 billion after factoring out the spinoff of Spansion, and earnings of 27 cents a share also beat estimates. But gross margins fell to 51.4%, down 5% sequentially. And while the company said it expects a “seasonally strong” fourth quarter and sales to “increase sequentially,” that still left room to disappoint $1.44 billion estimates.
Apple shares surged 5% after hours after the company’s earnings of 62 cents a share beat estimates by 11 cents, and sales rose 31% to $4.84 billion, also beating estimates. iPod and Mac sales were also strong, but fourth-quarter guidance was a little light.
eBay gained 3% in late trading after the company posted 30% sales growth to $1.45 billion, and earnings of 26 cents a share also beat estimates. Fourth-quarter sales guidance of $1.62-$1.68 billion was to the lower end of $1.66 billion guidance, as was earnings guidance of 27-28 cents a share. Juniper shares also gained in late trading after issuing limited results.
Stocks were mixed during the day, as a big gain in shares of IBM pushed the Dow past 12,000 for the first time, and tame consumer inflation data eased inflation fears.
But the chip sector had a rough day despite better than expected results from Intel
, as chip equipment makers got battered by capital spending concerns and disappointing results from Novellus
. A sales miss and warning from Motorola
hit TI
shares.
Yahoo fell 4.8% on its results. Google
will report Thursday night.
The Nasdaq lost 7 to 2337, the S&P 500 added 2 to 1366, and the Dow rose 42 to 11,992. Volume rose to 2.62 billion shares on the NYSE, but declined to 2.21 billion on the Nasdaq. Advancers led 18-13 on the NYSE, while decliners led 15-14 on the Nasdaq. Downside volume was 54% on the NYSE, and 60% on the Nasdaq. New highs-new lows were 307-11 on the NYSE, and 192-34 on the Nasdaq.
