Tuesday's Tech Winners & Losers
The price-target haircut was further bad news for eBay, which reported uninspiring guidance for the third quarter in a row on July 19. For its second quarter, net income dropped to $249.9 million, or 17 cents per share, from $291.6 million, or 21 cents, a year earlier. Sales grew 30% to $1.41 billion. On an adjusted basis, excluding certain costs including stock-based compensation, the company's earnings were 24 cents a share, matching the Thomson Financial estimate.
For the third quarter, eBay said it expects to earn 22 or 23 cents a share for the third quarter on sales of $1.36 billion to $1.43 billion. Analysts had hoped for earnings of 24 cents a share on revenue of $1.43 billion, according to Thomson First Call. eBay shares fell 42 cents to $23.65 in recent trading.
And the sentiment on eBay likely influenced others in the Internet sector, such as online retailer Amazon.com (AMZN), which shed 3.5 % of its value in recent trading. Shares lost 95 cents to $25.94.
Altiris (ATRS), on the other hand, jumped 16 % after the software company reported better-than-expected second-quarter results. The company made $2.8 million, or 10 cents a share, compared with $4.6 million, or 16 cents a share, a year earlier. Excluding items, the company earned $7.3 million, or 25 cents a share, compared with the Street's estimate of 16 cents. Revenue grew 20% over a year ago to $55.6 million, beating analysts' target of $52.6 million. Altiris also said that its board authorized the repurchase of up to $50 million of its stock. Shares gained $2.76 to $20.02.The hammer fell on other tech stocks on Tuesday, sending Intel (INTC), down 44 cents to $17.56, Microsoft (MSFT), off 4 cents to $24.02, JDSU (JDSU), also down 4 cents to $2.10, Sun Microsystems (SUNW), down 15 cents to $4.20, Dell (DELL), off 9 cents to $21.59, Cisco Systems (CSCO), off 23 cents to $17.65, Sirius Satellite Radio (SIRI), down 7 cents to $4.13, Applied Materials (AMAT), off 27 cents to $15.49, Apple Computer (AAPL), losing $1.39 to $66.57, Oracle (ORCL), down 24 cents to $14.73 and Yahoo! (symbol), also off 24 cents to $26.90.
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