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Techs revive as profits flow
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April 15, 1999: 5:16 p.m. ET
Earnings reports draws attention in chip, Internet and telecom sectors
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NEW YORK (CNNfn) - Wall Street investors swallowed a full plate of earnings reports in the technology sector Thursday and came away with hardly any indigestion.
After a sharp pull-back, particularly in the Internet sector, on Wednesday, tech investors crept in warily before going on a late-session buying spree that lifted the sector.
Chip-sector players, Internet brokers and telecom companies were atop the day's list of earnings reports.
But earnings complaints hit some companies hard. Technology consultant Meta (METG) sank 4-1/2 to 9, or 33 percent, after saying late Thursday it expects to post first quarter earnings between 10 and 11 cents a share.
That compared to analysts' estimate of 18 cents, as reported by First Call, Meta cited reorganization costs and product shortages.
Buoyed by brokers was Electronics for Imaging (EFII), up 5-3/4 to 46-7/8. BankBoston Robertson Stevens and Merrill Lynch raised their earnings targets for fiscal year 1999, and Piper Jaffray raised its price target on the stock by $6 to $55.
That came on the heels of the software maker's announcement Thursday of earnings of 31 cents per share in the first quarter, beating the analysts' consensus target by six cents.
Breather for ailing chip sector
A pair of better-than-expected earnings reports in the semiconductor market helped give the ailing segment a respite from weeks of rough rides.
In the chip segment, Altera (ALTR) added 9-5/16 to 76-9/16, after reporting first quarter profit of 48 cents per share, topping analysts' estimates of 44 cents.
BT Alex Brown upgraded the stock to "buy" from "market perform."
And low-cost chip maker Advanced Micro Devices (AMD) added 1-5/8 to 16-3/8 after reporting a narrower-than-expected loss in its first quarter. The company had warned analysts at least three times about a big loss during the quarter.
Intel (INTC) rallied 1-7/16 to 58-7/16.
Mixed picture for 'Nets
In the Internet sector, AudioHighway.com (AHWY) shed 3-1/4 to 28 after announcing plans to buy online music retailer Mass Music for about $1.3 million in stock and cash.
Elsewhere in cyberspace, the search engine software maker Inktomi (INKT) plummeted 17-13/16 to 119-3/16, as it prepared to unleash its second-quarter earnings report. Analysts had expected Inktomi to post a loss of 12 cent a share.
After the bell, Inktomi posted a loss of nine cents a share. In after hours trading, its shares did not trade.
Online brokers continued their retreat from eye-popping gains in recent days. Ameritrade (AMTD), which reported a profit of 14 cents per share in its second quarter -- twice what analysts expected -- still fell 11-3/8 to 136-5/8.
The shares, however, are up more than 800 percent so far this year. Rival E*Trade Group (EGRP) tumbled 11-7/16 to 101-7/16.
Discount brokerage giant Charles Schwab (SCH), whose eSchwab service is among the top online brokerages, tumbled 14-1/4 to 124 even though the company announced a first-quarter profit of 34 cents a share, a penny better than the First Call consensus.
IPO in communications sector
Ringing up gains in its first day of trading, Worldgate Communications (WGAT) rose to 34, up 62 percent, after pricing five million shares at $21 apiece. Gerard Klauer Mattison was the lead underwriter for the provider of high-speed Internet access via cable lines.
In the telecommunications sector, Qualcomm (QCOM) gained 3/16 to 157-3/4, after the maker of telecom equipment unveiled Thursday a two-for-one stock split.
And Tellabs (TLAB) spiked up 8-1/16 to 100-1/4, rallying after the maker of telecom equipment reported earnings that were three cents better than analysts had expected.
Merrill Lynch raised its fiscal 1999 earnings target, while JP Morgan opened its coverage with of the stock with a "buy" rating and set a $145 price target on the target.
EchoStar Communications (DISH) didn't take off, edging up 1/8 to 100-1/8, after the satellite TV company said late Thursday it had added 122,000 customers last month.
Morgan Stanley Dean Witter hiked up its 1999 price target to between $115 and $120 per share, up from $85.
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