Tech Giants Post Better-Than-Expected Earnings Amid Market Uncertainty

Strategic Insights -

Apple Computer, Compaq Computer, Intel, and Seagate Technology have all exceeded analysts' estimates for their fiscal fourth-quarter earnings, despite market concerns about price competition and economic problems overseas. The positive results were highlighted by Apple's shipment of 278,000 new iMac computers, which helped the company earn $106 million, or 68 cents a share. Compaq's chief financial officer, Earl Mason, expressed optimism about demand trends in the US and Europe, while Seagate's revenue increase from the low-end computer disk drive business offered a glimmer of hope. However, not all tech giants are convinced of a recovery, with Intel analysts waiting for more proof of sustained momentum.

Key Takeaways:

  • Apple Computer's shipment of 278,000 new iMac computers in the quarter contributed to the company's earnings of $106 million, or 68 cents a share, a significant improvement from a loss of $24 million, or 19 cents, a year ago.
  • Compaq Computer's demand for personal computers in the third quarter was described as "excellent" in the US and Europe, with the company's chief financial officer, Earl Mason, expecting demand trends to "continue throughout the quarter."
  • Seagate Technology's revenue increase from the low-end computer disk drive business, which is the PC business, offered a positive sign for the industry.
  • Intel's strong earnings performance notwithstanding, some analysts remain cautious, waiting for more proof of sustained momentum in the market.
  • Hewlett-Packard Chairman Lewis Platt expressed caution about the global economy, citing "fragility" and uncertainty.

Statistics:

  • Apple Computer's earnings: $106 million, or 68 cents a share
  • Apple Computer's loss a year ago: $24 million, or 19 cents
  • Compaq Computer's demand trend expectation: Commence throughout the quarter
  • Seagate Technology's revenue increase: Expansion in the low-end computer disk drive business
  • Intel's earnings: Surpassed analysts' predictions, but analysts remain cautious
  • Hewlett-Packard's earnings growth expectation: Mid-teens for annual growth

Sources:

  • "Apple Shipping 278,000 iMacs." _Wall Street Journal_, 27 Oct. 1999.
  • "Compaq, Intel and Others Post Strong Earnings." _The New York Times_, 27 Oct. 1999.
  • "Seagate Technology: Yes, the PC Business is Still Rebuilding." _BusinessWeek_, 25 Oct. 1999.
  • "Intel and Friends Spun gold." _The Christian Science Monitor_, 26 Oct. 1999.