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The Night Watch: Intel Drops After Earnings Report

Chip-equipment stocks lose ground. Applied Materials and Novellus move lower.

Updated from 4:53 p.m. EST

Widely held tech shares dominated trading in the extra session Tuesday, with chip giant


(INTC) - Get Report

leading the way.

After the close of regular trading, Intel posted fourth-quarter earnings, excluding items, of 15 cents a share, topping estimates by 4 cents. Including all costs, the company earned 7 cents a share, down from 32 cents in the year-ago quarter. Revenue fell to $6.98 billion from $8.70 billion.

Shares of Intel, the volume leader on the Instinet platform in extended trading, were off 2.1% to $33.95. The company projected first-quarter revenue of $6.4 billion to $7 billion. According to First Call, analysts expect a top line of $6.53 billion. The chipmaker also said it expects capital spending to total $5.5 billion in 2002, down from $7.3 billion last year.

Chip-equipment makers were sinking after the bell.

Applied Materials

(AMAT) - Get Report

was down 7.4% to $42.25, and



was dropping 6.3% to $39.64.


(KLAC) - Get Report

was losing 6% to $52, and

Lam Research

(LRCX) - Get Report

was off 6.8% at $23.60.


Nasdaq 100 Tracking Stock

(QQQ) - Get Report

was also active, shedding 1.8% to $39.60.

RF Micro Devices

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was down 4.4% after the company met Wall Street's third-quarter estimates but offered guidance that would fall short of the consensus view for the fiscal fourth quarter. The company earned 2 cents a share in the latest quarter, matching estimates, but projected earnings of only a penny a share next quarter. Analysts are looking for earnings of 4 cents in the fourth quarter.


(EBAY) - Get Report

was losing 4.9% to $60.90 following the company's announcement that

sales and profits for the first half of the year would meet analysts' targets. But the company didn't offer guidance for the full year, which had been expected. For its fourth quarter, eBay earned 14 cents a share on revenue of $219.4 million, while analysts expected earnings of 13 cents on revenue of $211.8 million.


(JNPR) - Get Report

slid 2.6% to $17.50 after the company met lowered

fourth-quarter earnings expectations Tuesday, posting pro forma profits of 5 cents a share on revenue of $152 million.

Traders were also busy selling other tech heavyweights.


(MSFT) - Get Report

was down 1.3%, while


(CSCO) - Get Report



(DELL) - Get Report



(ORCL) - Get Report



(SUNW) - Get Report

were all giving up ground.