Updated from Dec. 16

Shares of

palmOne

(PLMO)

plunged Friday after investors were unnerved by the company's earnings report, which fed fears about the performance of the company's Treo smartphone.

The stock was recently down $7.23, or 17%, to $35.32.

The handheld device and smartphone maker said after the bell Thursday that it earned $24.69 million, or 48 cents a share, in its just-completed quarter. That result was up from the second quarter last year, when the company lost $4.11 million, or 11 cents a share. Excluding discontinued operations, the company last year would have earned $2.63 million, or 7 cents a share.

The company's revenue rose 38% from the year-earlier period to $376.2 million.

Excluding stock-based compensation and other noncash charges, the company would have earned $27.22 million, or 53 cents a share, in the just-completed quarter.

Wall Street had expected the company would earn 53 cents a share on this basis on sales of $373.14 million. The company had predicted it would earn 46 cents a share on a GAAP basis in the current quarter.

Analysts anticipate the company will earn 30 cents a share on a GAAP basis on sales of $318.09 million in the current quarter.