CNNfn after the bell
|
|
December 22, 1998: 7:50 p.m. ET
AOL soars on Instinet after being added to S&P 500; Reebok runs into charge
|
NEW YORK (CNNfn) - Shares of America Online Inc. jumped more than 13 percent in after-hours trade Tuesday after Standard & Poor's added the world's largest online service provider to its benchmark index of 500 blue-chip stocks, replacing Venator Corp., the former Woolworth's.
The addition of America Online (AOL) to the S&P 500, a key barometer of stock market activity and performance, sent the Internet company's stock soaring to 139 on Instinet from its market close at 122-3/4.
The S&P Equity Indices are comprised of stocks valued at $653 billion, of which $626 billion are indexed to the S&P 500, $20 billion to the S&P MidCap 400, and $7 billion to the S&P SmallCap 600.
The move may be an effort by Standard & Poor's to burnish its venerable benchmark index with a hot technology stock. America Online has a market capitalization of nearly $41 billion.
Ingram Micro Inc. (IM), a leading distributor of wholesale technology products, said late Tuesday it expects to post record profits in the fiscal fourth quarter ending Jan. 2, 1999. But the anticipated results still fall short of analysts' expectations, paving the way for a possibly bumpy ride in Wednesday trade.
The Santa Ana, Calif.-based provider of assembly and integration services said it expected full-year net sales to grow more than 30 percent to between $21.8 billion and $22 billion, up from $16.6 billion in 1997. The company had $20.9 billion in aggregate sales over the last four quarters.
Ingram Micro also forecast net income ranging from $73 million to $74 million, or 48 cents to 50 cents per diluted share in its fourth quarter, "based on current business conditions," according to a statement. While those results would be the highest quarterly profit in the company's history, they still fall shy of Wall Street expectations for earnings of 56 cents a share.
The company predicted net quarterly sales of between $6 billion and $6.2 billion, a 17 to 21 percent jump over the comparable period a year ago, when there were five additional selling days. "Although for the fourth quarter we experienced slower than expected PC sales in the United States, we anticipate restored momentum for even greater success in 1999," Jerre Stead, Ingram Micro's chairman and chief executive officer said in a statement.
Shares of Ingram Micro ended down 9-1/4 at 37 Tuesday on the New York Stock Exchange..
Burlington Coat Factory Warehouse Corp. (BCF) posted financial results for the second fiscal quarter ended Nov. 28 in line with analysts' expectations. Burlington Coat Factory, based in Burlington, New Jersey, said its net income fell in the second quarter to $30.2 million, or 64 cents per diluted share, from $40.07 million, or 84 cents a share a year earlier. Sales declined 1.3 percent to $598.83 million from $606.44 million in the year-ago period, as comparative store sales fell 3 percent.
The company cited mild weather in the quarter for a 22 percent decline in comparative store coat sales.
Burlington shares closed down 3/16 at 12-13/16 Tuesday on the NYSE.
Citing "difficult economic conditions" and an industrywide slowdown, Sports footwear and apparel maker Reebok International Ltd. (RBK) said in a statement it would take "certain charges" in the fourth quarter which would reduce net earnings by about $10 million, or 18 cents a diluted share. Reebok did not release an earnings estimate. Wall Street has called for earnings of 4 cents a share.
The Stoughton, Mass.-based Reebok said the charges consist of an adjustment in the carrying value of its joint venture in Brazil, severance expenses associated with the restructuring of certain business units, and the bankruptcy of an independent distributor.
"The industry is definitely going through some difficult times," Paul Fireman, Reebok's chairman and chief executive officer. "We have been making the necessary adjustments to address the current business climate and we are prepared to do what is necessary to position the company to return to greater profitability in the future."
Reebok stock gained 1/8 Tuesday on the NYSE to end at 14-1/16.
|
|
|
|
|
|