eBay Meets Estimates, Trades Up, Then Down After Hours

eBay (EBAY) shares rose to as high as 110 1/4 in after-hours trading, according to CNBC, but then fell to as low as 99 following a solid second-quarter earnings report. The online auctioneer earned 4 cents a share, excluding charges, in line with the 15-analyst First Call estimate and above the year-ago 2 cents. The company also said that since last quarter, its registered users jumped 46% to 5.6 million.

Major Indices INDEX CHANGE % VALUE YR TO DATE Dow 47.80 -0.4% 10,863.16 +18.3% S&P 500 9.18 -0.7% 1347.76 +9.6% Nasdaq 72.70 -2.7% 2619.70 +19.5% Russell 2000 5.51 -1.2% 442.87 +5% TSC Internet 27.46 -4.6% 564.39 +38.9% TREASURY BOND CHANGE VALUE YIELD 30-Year 6/32 89 7/32 6.037%

In other postclose news (earnings estimates from First Call; earnings reported on a diluted basis unless otherwise specified):

Earnings/revenue reports and previews

Covad (COVD) met analyst estimates as it reported a net loss of $41.9 million, or 61 cents a share, for the second quarter, compared to $8.9 million, or $1.11 a share, one year earlier. The Santa Clara, Calif.-based provider of high-speed data services grew revenue to $10.8 million, up sharply from $809,000 one year earlier.

After slipping 3 5/8 to 52 5/8 during the day, the stock traded slightly higher at 53 after hours, according to Instinet. It has fallen 21% from 67 1/2 on July 15 as investors worry about growth prospects for Covad and its sector.

"I'm pleased with our success to date, and yet in the same breath I would say there's a lot of work to do," said Bob Knowling, CEO of Covad.

That includes jostling for space on rivals' networks. Covad added $1.4 million to its anticipated expenses for the quarter because of sharply increased payments to Bell Atlantic (BEL) for using the Baby Bell's central offices, according to Knowling. Karen Maguire, a network director with Bell Atlantic, said that overall, Bell Atlantic's charges to companies that use its central office space have gone down recently. She could not comment specifically on Covad.

Separately, Covad filed an antitrust suit against Bell Atlantic in federal court this spring. Bell Atlantic will compete with Covad as it deploys its own DSL services. The case is pending. Knowling, himself an alumnus of Baby Bells U S West (USW) and Ameritech (AIT), said a ruling is likely by year-end.

--Kevin Petrie

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American Financial (AFG) posted second-quarter earnings of 68 cents a share, including special items. The three-analyst outlook called for operating earnings of 72 cents vs. the year-ago 38 cents.

Clear Channel Communications (CCU) reported second-quarter earnings of 33 cents a share vs. the year-ago 11 cents. The company said it earned 57 cents a diluted share in after-tax cash flow. The six-analyst estimate called for earnings of 4 cents.

Guess? (GES) reported second-quarter earnings of 16 cents a share, 4 cents ahead of the lone analyst's expectation and up from the year-ago 8 cents. The company, whose same-store sales jumped 30.9%, also agreed to acquire 60% of Strandel, its licensee for wholesale and retail operations in Canada.

Integrated Silicon Solution (ISSI) reported a third-quarter loss of 5 cents a share, including a charge and an extraordinary gain, compared with the year-ago loss of 61 cents. The company provided no per-share operating figures.

Intergraph (INGR) posted a second-quarter loss of 25 cents a share, including a gain on the sale of a subsidiary and a charge for the resizing of its European computer hardware sales group. The three-analyst forecast called for an operating loss of 27 cents vs. the year-ago loss of 60 cents.

Macrovision (MVSN) reported second-quarter earnings of 23 cents a share, 2 cents better than the three-analyst estimate and up from the year-ago 17 cents. The company also set a 2-for-1 stock split. And CFO Vic Veigas resigned, effective Aug. 1, to join a startup.

TBC (TBCC) recorded second-quarter earnings of 24 cents a share, a penny above the three-analyst view and ahead of the year-ago 16 cents. The company also added CEO to President Lawrence C. Day's title.

In other earnings news:

Upside Surprises
Company	Qtr	EPS	First Call View	Yr. Ago EPS	Number of Analysts
Aaron Rents (RNT)	2Q	32c	31c	27c	4
Advanced Fibre Communications (AFCI)	2Q	6c	4c	9c	13
Airborne Freight (ABF)	2Q	55c	50c	66c	13
Armstrong World Industries (ACK)	2Q	$1.62	$1.56	$1.38	12
CEC Entertainment (CEC)	2Q	34c	32c	26c	10
Coherent (COHR)	3Q	24c	23c	-7c	2
Cox Radio (CXR)	2Q	30c	27c	22c	3
Foodmaker (FD)	3Q	44c	41c	31c	7
Friede Goldman (FGI)	2Q	34c	32c	31c	6
Hartford Life (HLI)	2Q	81c	79c	67c	15
Insight Enterprises (NSIT)	2Q	30c	26c	19c	8
Insignia Financial (IFS)	2Q	13c	12c	17c	1
International Network Services (INSS)	4Q	16c	15c	8c	15
JDS Uniphase (JDSU)	4Q	48c	44c	N/A	12
Liberty Property Trust (LRY)	2Q	71c	70c	64c	11
LifePoint Hospitals (LPNT)	2Q	6c	3c	4c	5
Mastech (MAST)	2Q	25c	24c	17c	13
MidAmerican Energy (MEC)	2Q	26c	21c	51c	7
Monaco Coach (MNC)	2Q	59c	45c	24c	5
Oglebay Norton (OGLE)	2Q	$1.21	$1.15	$1.13	1
Outdoor Systems (OSI)	2Q	9c	8c	6c	2
Pixar (PIXR)	2Q	13c	11c	4c	7
PSC (PSCX)	2Q	25c	23c	19c	4
Rare Hospitality (RARE)	2Q	30c	28c	22c	6
Remedy (RMDY)	2Q	22c	19c	16c	8
Charles E. Smith Residential Realty (SRW)	2Q	81c	80c	73c	8
Sonic Automotive (SAH)	2Q	30c	27c	20c	6
Talk.com (TALK)	2Q	22c	20c	-$1.49	2
Waters (WAT)	2Q	43c	39c	30c	6

Downside Surprises
Company	Qtr	EPS	First Call View	Yr. Ago EPS	Number of Analysts
Ethyl (EY)	2Q	16c	17c	16c	1
Everest Reinsurance (RE)	2Q	88c	89c	82c	7
New Century Energies (NCE)	2Q	43c	54c	50c	10
Western Wireless (WWCA)	2Q	-73c	-3c	-10c	14

In-Line Reports
Company	Qtr	EPS	First Call View	Yr. Ago EPS	Number of Analysts
ACT Manufacturing (ACTM)	2Q	23c	23c	1c	7
Galileo International (GLC)	2Q	59c	59c	51c	8
Georgia Gulf (GGC)	2Q	13c	13c	52c	6
Harte-Hanks Communications (HHS)	2Q	26c	26c	22c	14
Hartford Financial Services (HIG)	2Q	92c	92c	78c	16
Otter Tail Power (OTTR)	2Q	55c	55c	63c	1
Superior Telecom (SUT)	2Q	75c	75c	63c	3
Sykes Enterprise (SYKE)	2Q	27c	27c	20c	11

Mergers, acquisitions and joint ventures

Pechiney (PY) agreed to acquire two fabricated aluminum businesses from Century Aluminum (CENX) for $248 million.

Offerings and stock actions

1-800 Contacts (CTAC) suspended its share buyback program. The company, which has bought back 170,000 of the 500,000 shares approved for repurchase in October, said it might resume the program some other time.

Miscellany

Atlantic Richfield (ARC) said it would continue to reduce crude runs at its Washington state refinery through the end of the third quarter, citing the partially downed Olympic pipeline.

Southern Energy Homes (SEHI) announced plans to close its Albemarle, N.C., plant and take a related third-quarter charge of $3.7 million to $4.3 million.

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