=DJ Sun Micro Expected To Report Wider 1Q Loss >SUNW
10/26/2006
Dow Jones News Services
(Copyright © 2006 Dow Jones & Company, Inc.)
By Rex Crum
Sun Micosystems Inc.'s (SUNW) shares were little changed Thursday ahead of the technology giant's fiscal first-quarter report, due after the market close, which is expected to show a wider loss from a year earlier.
Analysts surveyed by Thomson First Call estimate Sun will, on average, lose 4 cents a share on $3.2 billion in revenue, compared to a loss of a penny a share on revenue of $2.73 billion in the year-ago period.
Sun rose 5 cents to $5.35 in afternoon trading. The stock is up more than 23% this year on optimism for a turnaround under new Chief Executive Jonathan Schwartz, who took the reins in April.
Schwartz has launched a broad restructuring plan that includes cutting 5,000 jobs and divesting itself of some real estate holdings. The maker of computer servers and related equipment also has been updating its product line and trying to expand its software business, which is more profitable than most hardware sales.
Still, several Wall Street analysts remain cautious about Sun.
Jesse Tortura, of Prudential Equity Group, said Sun still faces fierce competition from the likes of Hewlett-Packard Co. (HPQ) and International Business Machines Corp. (IBM) in the markets for medium- and high-end servers.
Tortura started his coverage of Sun on Oct. 19 with an underweight rating.
-Rex Crum; 415-439-6400;
AskNewswires@dowjones.com
(END) Dow Jones Newswires
10-26-06 1345ET
Copyright (c) 2006 Dow Jones & Company, Inc.
[/IMG]
عضو قدير
ضوابط المشاركة
رد مع اقتباس
المفضلات