The Night Watch: IBM, Apple Climb; Extreme, Redback Fall on Earnings News

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(Updated from 7:36 p.m. EST)

Folks who follow the after-hours market were treated to another chartbuster session tonight. As is typically the case during the weeks that businesses pour their hearts out to investors (otherwise known as earnings season), this evening's postclose session was flooded with sharper-than-usual price movements and very few dull moments.

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Companies in the earnings spotlight tonight included computer manufacturers

Apple

(AAPL) - Get Report

and

IBM

(IBM) - Get Report

-- whose shares rose on the back of their reports -- and networkers

Extreme Networks

(EXTR) - Get Report

and

Redback Networks

(RBAK)

-- whose stock prices fell on the heels of their statements.

After the closing bell, Apple Computer posted a first-quarter loss -- its first loss in three years. Still, the shortfall was narrower than the downwardly revised number predicted by Wall Street.

Apple recorded a loss of 58 cents per share, topping analysts' prediction of a 65-cent loss but far below the year-ago 51-cent profit. Sales for the company fell to $1.01 billion from $2.34 billion in the year-ago period but came in slightly ahead of Apple's prediction of sales of $1 billion.

In extended trading, shares of Apple advanced 5.2% to $17.69 on

Instinet

and climbed 4.1% to $17.50 on

Island

.

Meantime, computing giant IBM

released fourth-quarter earnings that exceeded Wall Street's expectations. More important, IBM recorded a revenue figure that was also above consensus. For the first quarter, IBM posted earnings of $1.48 per share, beating the consensus estimate of $1.46 per share. Sales, meantime, totaled $25.62 billion, about $130 million above expectations and 5.9% above the year-ago period.

On the night watch, shares of the PC maker -- which are generally traded on the postclose marketplace only when there's news on the company -- surged 6.5% to $103 on Instinet.

Moving on to other companies with earnings news tonight, Extreme Networks

posted second-quarter earnings that were in line with Wall Street's forecasts but only slightly surpassed revenue targets, raising investor concerns about its growth prospects.

Extreme said that second-quarter earnings were 11 cents a share, meeting analysts' forecasts. Revenue for the quarter came in at $144.7 million, compared with $55 million in the year-ago period. Analysts had expected revenue of $142.3 million for the second quarter.

As a result, shares of the networker fell 13.3% to $41.53 on Instinet and dropped 12.3% to $42 on Island.

Redback Networks, the second networker to report this evening, stated fourth-quarter earnings that were ahead of Wall Street's targets but said that gross margins are declining.

The company posted earnings of 5 cents a share, just beating the 4 cent analyst estimate. The company reported revenue of $114.6 million, up from $26.1 million in the year-ago period.

Redback shares lost 3.2% to $47.02 on Instinet and declined 5.4% to $45.94 on Island.

Earnings news from the semiconductor sector was even less rosy than the networkers' reports. Chipmaker

Xilinx

(XLNX) - Get Report

recorded third-quarter earnings that missed analysts' lowered expectations. The company was quiet about its revenue forecasts for the fourth quarter.

Xilinx announced earnings of 31 cents a share, falling short of the Street's prediction of a 32 cent result but above the year-ago 20 cent result.

In recent action, Xilinx shed 3.6% to $46.56 on Instinet and slid 3.2% to $46.75 on Island.

Elsewhere in the sector,

Advanced Micro Devices

(AMD) - Get Report

announced earnings of 53 cents a share, below downwardly revised estimates. The company also indicated that it expects flat first-quarter revenue.

At last look, shares of AMD had not been traded on the after-hours marketplace.

Finally, business-to-business firm

i2 Technologies

(ITWO)

reported earnings and revenue numbers that beat analysts' expectations.

i2, which makes software to help companies manage their inventory and manufacturing processes, said it earned 9 cents a share, excluding certain charges, in the fourth quarter. Analysts were looking for the company to earn 8 cents a share. The company earned 5 cents a share a year earlier. The B2B firm booked revenue of $378 million, compared with analysts' prediction of $350 million in revenue. A year ago, i2 Technologies logged $175 million in revenue.

Despite its better-than-expected earnings number, shares of i2 Technologies declined 7.4% to $49.88 on Instinet and decreased 6.4% to $50.41 on Island.

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TheStreet.com

is looking for your best after-hours trading stories, from the pitfalls to the windfalls. Please email them to me at diane.hess@thestreet.com.

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