Stocks slide on Compaq disclosure; profit warning hurts technology issues as DJIA falls 21.47
Article Abstract:
The Dow Jones Industrial Average (DJIA) reacted to Compaq Computer Corp's prediction of lower earnings for the 2nd qtr 1991 than the computer manufacturer had in the same quarter in 1990 by dropping more than 21 points on Tuesday, May 15, 1991. Many technology companies' stocks fell, in addition to Compaq's, which dropped 27 percent to 36, down 13.25 points. IBM's fell 3.25; DEC's fell just over 2.5; Apple declined three points to 50.5, and Intel lost four to end the day at 49.25. The NASDAQ Composite Index, which is heavily influenced by the big computer players such as Intel, dropped to 478.08, a decline of 11.71 points. Industry and market analysts indicated that investors were concerned about the lack of economic recovery even before Compaq announced its potentially low earnings. High interest rates and a large number of Treasury bonds being floated also affected investors' attitudes.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1991
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Compaq posts record results but stock falls
Article Abstract:
Jittery investors drive down Compaq stock 12 percent on the New York Stock Exchange on Jan 25, 1995, even though the company announced record results for 4th qtr 1994. Compaq earned $243 million, or 90 cents per share, up from $151 million, or 58 cents per share, for the quarter ended Dec 31, 1993. Revenue leaped 48 percent, from $2.2 billion in the year-before period to $3.25 billion. Unexpected foreign-currency losses of $20.5 million knocked off over 6 cents per share from Compaq's earnings. With analysts making a consensus prediction of 95 cents per share, disappointed investors drove Compaq stock down from $5 to $37.375 by the close of the day. However, some analysts say the 95-cent figure was overoptimistic. Analysts are also concerned about a lull in sales until Compaq introduces new notebooks and Pentium-based desktops at the end of 1st qtr 1995.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1995
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