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News > Technology
American Power plunges
July 27, 2000: 5:50 p.m. ET

Maker of surge protectors sees stock falter on earnings forecast
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NEW YORK (CNNfn) - Shares of American Power Conversion Corp., a leading maker of power supplies and surge protectors for computers and other electronic gear, short-circuited after the company warned that its third- and fourth-quarter earnings would be below analysts' expectations.

After the market closed Thursday, West Kingston, R.I.-based American Power Conversion (APCC: Research, Estimates) reported second-quarter earnings that were in line with analyst estimates. The company reported second quarter net income of $57.6 million, or 29 cents per share, up from $42.8 million, or 22 cents, in the same period last year. Revenue rose 16 percent to $365.7 million from $315.5 million.

However, the company also said that its third quarter revenue, not including the impact of acquisitions, likely would increase in the "mid-single digits to mid-teens" versus the same period in 1999, a growth rate slower than analysts had expected. American Power Conversion said it expects earnings per share for the third quarter to be between 29 cents and 35 cents. The average analyst estimate for that period had been 37 cents, according to earnings estimate tracker First Call.

American Power Conversion also said that it expects its full-year earnings to be between $1.13 and $1.25, versus the previous analyst estimate of $1.30 per share.

Investors responded by pounding the company's stock in after-hours trading, sending it down 15-11/16 to 30-13/16, a 34 percent loss.

"We continue to build our incremental businesses, focusing on high growth areas such as the Internet infrastructure build-out and communications growth," Rodger Dowdell, the company's president and CEO, said in a news release. "APC remains the largest, and we believe the most profitable, global provider of AC power protection solutions, and we continue to aggressively ramp efforts to expand our position in both traditional and new markets." Back to top





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Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2012 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2012 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2012. All rights reserved. Most stock quote data provided by BATS.
© 2012 Cable News Network. A Time Warner Company. All Rights Reserved. Terms under which this service is provided to you. Privacy Policy. Ad choices .