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Intel Gains, Yahoo! Drops in After-Hours Action on Earnings Reports

Seagate and Linear Technology beat estimates as well, and Visx issues a positive preannouncement.

They were both expected to do it; the only question was by how much. Technology powerhouses


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-- symbols of the old and new reasons for the

Nasdaq Composite Index

to reach new heights on a regular basis -- both destroyed fourth-quarter earnings estimates this afternoon. In after-hours trading, the chip maker was rewarded for its positive report while the Internet's largest portal extended its decline from today's regular session.

Intel posted quarter earnings of $1.19 a share, 12 cents higher than the 31-analyst

First Call

outlook and above the year-ago 98 cents. The company said it sees its first-quarter gross margin falling slightly below the fourth quarter's 58% because of seasonal factors. Intel climbed to 139 from 135 9/16 in after-hours trading, reversing its 4 3/16-point loss from today's regular session.

Yahoo! reported quarter earnings of 21 cents a share, topping the 24-analyst forecast of 16 cents and the year-ago 2 cents. The company also announced a 2-for-1 stock split. The split was widely anticipated but may strike Wall Street as somewhat mild. After all, the stock ended the day at 402, which would, of course, make the post-split figure 201 -- not exactly cheap. When Yahoo! last announced a 2-for-1 split in July, the stock was at 165. Yahoo! split once before that: 3-for-2 in August of 1997. Yahoo! said traffic to its Web sites rose to an average of 167 million page views daily compared with 144 million in September. In after-hours trading, Yahoo! was down to 395, extending today's 12 1/2-point decline. Also, Yahoo! named CEO Tim Koogle to the additional post of chairman and named COO Jeff Mallett president and a board member.

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

Earnings/revenue reports and previews

Acclaim Entertainment


posted first-quarter earnings of 16 cents a share, a penny ahead of the five-analyst call for a repeat of the year-ago 15 cents.



said it sees a fourth-quarter loss of 21 cents a share after establishing a $1 million reserve to cover past-due bills. The five-analyst estimate called for a loss of 14 cents.

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announced a fourth-quarter loss of 53 cents a share, wider than the five-analyst forecast of a loss of 47 cents and the year-ago loss of 11 cents.

Century Communications


reported a second-quarter loss of 33 cents a share, wider than both the three-analyst forecast for a loss of 22 cents and the year-ago loss of 28 cents.

DSP Communications

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posted fourth-quarter earnings of 24 cents a share, in line with the eight-analyst prediction and higher than the year-ago 20 cents.

Kent Electronics


reported a third-quarter loss of 3 cents a share, a penny wider than the eight-analyst view and below the year-ago profit of 36 cents. The company said it expects to return to modest profitability in the fourth quarter, when analysts call for earnings of a nickel a share.



announced first-quarter earnings of 26 cents a share, including an after-tax gain of 1.5 cents a share on the sale of

Renal Care

compared with the year-ago 25 cents. The six-analyst forecast called for 27 cents this quarter.

Linear Technology


reported second-quarter earnings of 59 cents a share, 2 cents above the 17-analyst outlook and above the year-ago 55 cents. The company also set a 2-for-1 stock split.


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said it expects to take a $33.8 million one-time expense in the fourth quarter to cover previously announced cash and stock option compensation packages.

MDU Resources

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said it will record a fourth-quarter charge of $20 million as a result of low oil and gas prices.



said it plans to take fourth-quarter charges of $15 million for plant closures in Ipoh, Malaysia, and Vista, Calif., and $1 million to write off related capitalized finance costs.

Seagate Technology


posted second-quarter earnings of 42 cents a share, blowing away the 11-analyst outlook for 26 cents and beating the year-ago loss of 8 cents.


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reported second-quarter earnings of 81 cents a share, 11 cents higher than the two-analyst view and above the year-ago 59 cents.



said it sees second-quarter earnings topping estimates and coming in at 31 cents to 33 cents a share. The two-analyst outlook called for 28 cents.



said it expects to report fourth-quarter earnings of 71 cents to 73 cents a share, assuming an effective tax rate of 40%. The five-analyst estimate called for 66 cents vs. the year-ago 44 cents.

Mergers, acquisitions and joint ventures



said it was not consulted when

LVMH Moet-Hennessy Louis Vuitton




9.5% stake in Gucci.


Centennial Cellular


named Michael Small its chief executive and Peter Chehayl CFO following its previously announced $1.9 billion merger with

CCW Acquisition


Nine West Group


said the

Federal Trade Commission

is conducting a preliminary inquiry into the company's pricing policies.