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B R E A K F A S T W I T H T H E F O O L Wednesday, December 13, 2000 benjamin.rogers@enron.com _________________________________________________________________ Sponsored By: NDB A Special Offer for Motley Fool Members! Open an account with National Discount Brokers / ndb.com and get up to $300 in Free Trade Commissions.* Click Here to Apply Now! http://www.lnksrv.com/m.asp?i=241886 "The good people sleep much better at night than the bad people. Of course, the bad people enjoy the waking hours much more." -- Woody Allen COMPAQ UNSURPRISINGLY WARNS Computer maker Compaq became a member of the warnings club yesterday. By LouAnn Lofton Compaq Computer (NYSE: CPQ) joined its PC-related brethren yesterday on the warning train. Gateway Computer (NYSE: GTW), Apple (Nasdaq: AAPL), Intel (Nasdaq: INTC), and Advanced Micro Devices (NYSE: AMD) have all warned the Street recently that sales and earnings in their fourth quarters would be below expectations. Compaq lowered guidance for the fourth quarter and for its next fiscal year after the close of market yesterday. It also announced that it will take a non-cash charge in the fourth quarter related to the decline in value of some of its investments. Compaq's revenues for the fourth quarter will now be between $11.2 billion and $11.4 billion. That's below the expected $12.3 billion, but still above last year's $10.4 billion. Compaq expects earnings, minus charges, to be in the range of $0.28-$0.30 a share. Analysts were looking for $0.36 a share. Compaq earned $0.19 a share last year. The company blamed weak sales of its computers to U.S. consumers and businesses, and softness in the demand for its servers. Compaq is optimistic about the next fiscal year, but did lower its guidance for results. Chairman and CEO Michael Capellas said, "Our current 2001 plan calls for 10% revenue growth and 25% growth in earnings per share over the revised estimates for the fiscal year 2000. Although this is lower than our previous guidance, it still reflects strong year-over-year improvement." According to First Call/Thompson Financial, analysts expected earnings to grow about 40% in the next fiscal year. Compaq also said that it will take a non-operating, non-cash charge in the fourth quarter, related to the decline of some of its investments. Internet incubator CMGI (Nasdaq: CMGI) and its related assets are the main holdings that are causing this move. _________________________________________________________________ NEWS TO GO Biotech company Amgen (Nasdaq: AMGN) announced share repurchase plans yesterday after the bell. The company plans to buy back up to $2 billion in common stock between January 1, 2001 and December 2002. Amgen also said that President and CEO Kevin Sharer will be adding chairman to his title. The current chairman, Gordon Binder, will retire December 31, as previously announced. Retailer Claire's Stores (NYSE: CLE) will miss fourth-quarter earnings estimates. The company said yesterday that it sees earnings per share for the fourth quarter of between $0.70 and $0.80. Analysts had expected $1.12 a share. The company blamed slow sales for the disappointing results. Embedded computer maker Radisys (Nasdaq: RSYS) warned yesterday that it will not meet current earnings and sales expectations. Radisys is looking for fourth-quarter revenue of around $83 million, versus the $90.7 million it originally predicted. Earnings per share for the fourth quarter will be between $0.20 and $0.24. Analysts, and the company itself, expected $0.41 a share. The company also said that the first quarter of its new fiscal year should return results about flat with the fourth-quarter results. Analysts had expected Radisys to have earnings per share in the first quarter of $0.42. Internet consulting firm Razorfish (Nasdaq: RAZF) cut its fourth-quarter outlook yesterday. This is the second time the company has done so. Razorfish now expects to post a loss of between $0.17 and $0.22 a share for the quarter, excluding certain charges. Analysts were expecting a profit of $0.02 a share. _________________________________________________________________ EDITORS' PICK Todd Lebor looks at the demise of eConsultant companies and leads us to wonder why obvious issues were ignored by management and investors alike. http://www.fool.com/m.asp?i=241887 _______________________________________________________________ -News & Commentary http://www.fool.com/m.asp?i=241888 -Fool Community http://www.fool.com/m.asp?i=241889 -Post of the Day http://www.fool.com/m.asp?i=241890 -Latest Fribble http://www.fool.com/m.asp?i=241891 -Latest Market Numbers http://www.fool.com/m.asp?i=241892 ____________________________________________________________ My Portfolio: http://www.fool.com/m.asp?i=241893 My Discussion Boards: http://www.fool.com/m.asp?i=241894 My Fool: http://www.fool.com/m.asp?i=241895 Fool.com Home: http://www.fool.com/m.asp?i=241896 My E-Mail Settings: http://www.fool.com/m.asp?i=241897 Sponsored By: NDB A Special Offer for Motley Fool Members! Open an account with National Discount Brokers / ndb.com and get up to $300 in Free Trade Commissions.* Click Here to Apply Now! http://www.lnksrv.com/m.asp?i=241898 GET A HEAD START ON 2001 Start your investing research now with Industry Focus 2001. Available in electronic download or hard copy. http://www.lnksrv.com/m.asp?i=241899 NEW! COMPLETE HOME FINANCE CENTER You can do it all here: get a mortgage, get an equity loan, or refinance http://www.fool.com/m.asp?i=241900 FOOL DIRECT E-MAIL SERVICES Need to change your address or unsubscribe? You can also temporarily suspend mail delivery. Click here: http://www.fool.com/community/freemail/freemaillogin.asp?email=benjamin.rogers @enron.com< Have ideas about how we can improve the Fool Direct or new e-mail products you'd like to see? Try our discussion board: http://www.fool.com/m.asp?i=241901 ____________________________________________________ © Copyright 2000, The Motley Fool. All rights reserved. This material is for personal use only. Republication and redissemination, including posting to news groups, is expressly prohibited without the prior written consent of The Motley Fool. . MsgId: msg-8746-2000-12-13_9-00-49-3244911_2_Plain_MessageAddress.msg-09:06:52(12-13- 2000) X-Version: mailer-sender-master,v 1.84 X-Version: mailer-sender-daemon,v 1.84 Message-Recipient: benjamin.rogers@enron.com
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