|
Garbage firm gets trashed
|
 |
July 7, 1999: 12:20 p.m. ET
Profit warning sends investors fleeing from Waste Management
|
NEW YORK (CNNfn) - Shares in Waste Management Inc. dropped sharply Wednesday after the company warned that it would not live up to earnings expectations for the next several quarters.
Waste Management (WMI) stock sank 19-3/8 to 34-3/16 by noon. It fell to as low as 33-3/4 earlier in the day, a 52-week low.
The Houston-based waste disposal and recycling services company, citing a drop in revenue, warned late Tuesday that it will likely post earnings in the range of 67 cents to 70 cents per share for the second quarter, sharply lower than the consensus forecast of 78 cents per share from analysts surveyed by First Call Corp. The company also said it would miss analysts' targets for full-year results.
The news led several Wall Street analysts to cut their ratings on the stock.
Meanwhile, investors fled from another company that also warned about its results. Shares in software maker New Era of Networks Inc. (NEON) plummeted 25 to 19-1/16 by midday after falling as low as 16-1/2 at one point.
The company's shares had traded as high as 78-3/8 within the past year.
NEON said late Tuesday that it will report a net loss of 12 cents to 22 cents per share in the second quarter before special charges, attributing the results to unexpected expenses and the failure of a number of sales to close by the end of the quarter.
Wall Street analysts had expected the Englewood, Colo.-based company to earn 12 cents per share. 
|
|
|
|
|
 |
|
