SAN FRANCISCO -- It didn't come as a huge surprise that Yahoo! (YHOO) beat earnings estimates after the close Wednesday. Deciding how investors would react to the report was a little more difficult.
Despite a strong report, Yahoo! was all over the board early and had lately slipped into negative territory, down 7/8 at 207 9/16.
The stock's weakness comes despite mostly favorable comments from analysts following the earnings announcement.
While reiterating its buy rating as well as its price target of 250 on the stock in a recent research note,
BT Alex. Brown
points out that Yahoo! has now exceeded its estimates for each of the 12 quarters since it became a public company. The firm raised its revenue forecast for the second quarter to $105 million from $85 million, though it left its earnings estimate at 9 cents a share to reflect the integration of
Under the Advanced Microscope
Yet another earnings warning came from
Advanced Micro Devices
late Wednesday. The company cautioned that its first-quarter results will fall short of expectations because of competition and continuing production problems with its K6-2 chip and said it sees revenue for the period of $630 million. The company already had warned of an earnings shortfall
AMD, which will report earnings after the close April 14, was down 1 7/16, or 9%, at 14 3/4 in early trading. Rival
, which will report a day ahead of AMD, was down 3, or 2%, at 129 1/8.
was off 3 13/16, or 2.3%, at 162 after it set a deal with midsize cable operator
to deliver high-speed Internet service for 1.2 million homes in 23 states. @Home also secured its first round of financing from a group of high-profile technology companies for its
venture, a new business unit that is designed to aggregate small and medium-size cable companies.
reported on those developments this morning.
Supply-chain software vendor
has faltered in early trading after reporting a wider-than-expected loss for its fourth quarter ended Feb. 28. The stock was down 15/16, or 14%, at 5 13/16.
, which warned of an earnings shortfall Wednesday, has slipped sharply in this morning's action.
Credit Suisse First Boston
downgraded the stock to buy from strong buy following the announcement. The stock was lately trading down 13 7/32, or 49%, at 14.
Wind River Systems
also warned of an earnings shortfall on Wednesday, but has managed to remain on positive ground so far today. The software maker was up 1 13/16, or 15%, at 13 11/16. Despite the warning, CS First Boston reiterated its strong buy rating on the stock.