Forum Archive Index - September 2000

["Ben Dutton" <bendutton@sharechat.co.nz>]

Last Friday (Thurs. in the U.S.) we saw Intel get smashed in after-hours
trading following an earnings warning by the chipmaker.

Now Apple is in the firing range:  This story from http://www.thestreet.com/

Apple Plunges After Earnings Shortfall
By TSC Staff

9/28/00 5:37 PM ET

Updated from 5:22 p.m. EDT:

Apple (AAPL:Nasdaq - news) plunged Thursday after the PC maker warned after
the bell that fourth-quarter earnings would fall far short of expectations.

The company said it expects to earn 30 cents to 33 cents per share, leaving
it well short of the 45-cent First Call/Thomson Financial consensus. Apple
forecast quarterly revenue of $1.85 billion to $1.9 billion, up from $1.83
billion in the third quarter. That indicates extremely modest sequential
growth, even as investors have been betting demand will rebound.

Unlike Intel (INTC:Nasdaq - news), Apple didn't blame the euro, saying
instead that sales were weak across all geographies. It noted slow sales of
its new G4 Cube and sluggishness in the education market, traditionally a
strong point for Apple.

Fears about weakening worldwide demand for PCs, sparked by downgrades of big
chipmakers and deepened by Intel's revenue shortfall, conspired to take
about 20% off Apple stock this month. Ironically, the shares rebounded
Thursday, rising $4.56, or 9.3%, to $53.50 ahead of the news.

'Wonderful'
In a press release, CEO Steve Jobs said: "Though this slowdown is
disappointing, we have so many wonderful new products and programs in the
pipeline-including Mac OS X early next year and remain positive about our
future."

Investors don't care. Apple was recently trading at $30.38 on Island, down
43% from its New York close.


Taken from http://www.thestreet.com/



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