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Stocks to watch Friday
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July 5, 2001: 5:59 p.m. ET
Tech warnings from AMD, EMC and BMC flood in, hitting stocks after hours
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NEW YORK (CNNfn) - Tech warnings and three-letter companies dominated the news after the bell Thursday, with AMD, EMC and BMC all saying they will miss earnings targets.
AMD (AMD: Research, Estimates) said it expects to report sales of $985 million and earnings ranging between 3 cents and 5 cents per share. Analysts had generally expected AMD to log sales of $1.08 billion and a profit of 27 cents per share, according to a survey conducted by earnings tracker First Call.
The stock fell $3.89 to $24.75 after hours.
EMC (EMC: Research, Estimates) warned it expects second-quarter results to fall sharply below Wall Street forecasts, and cited the slowing economy for declining investment in information technology. EMC, the world's biggest data storage supplier, now anticipates second quarter earnings of 4-to-6 cents a share, far short of analysts' consensus forecasts of 17 cents a share, according to earnings tracker First Call. The company also expects $2 billion in revenue, which is about $400 million short of Wall Street forecasts.
In after-hours trading the stock dropped $2.78 to $27.25.
BMC Software (BMC: Research, Estimates) said its first-quarter earnings would be below the company's previous guidance due to current economic conditions. The company said revenue would be in the range of $338 million-to-$345 million, about three-to-five percent below the low end of its earlier estimate, and earnings per share would be in the range of 6-to-8 cents per share. BMC previously predicted a profit of 11-to-14 cents per share.
Specialty coffee chain Starbucks (SBUX: Research, Estimates) said sales at stores open at least a year rose by 3 percent in June from a year ago.
The Seattle-based company reported net revenues up 19 percent in the month ended July 1 to $259 million, from $218 million a year earlier.
Shares of Starbucks fell 62 cents Thursday to $21.30.
Communications company Tekelec (TKLC: Research, Estimates) said fiscal second-quarter earnings would not meet forecasts primarily due to an abrupt slowdown in customer orders in the United States.
The company said it expects earnings of 2-to-3 cents per diluted share for the quarter, excluding merger charges. It also expects revenues of $70 million to $71 million compared with prior guidance of $88 million to $90 million. Tekelec previously said it expected second-quarter earnings of 16 cents per diluted share, but revised the outlook as customers delayed orders and postponed projects in response to a weakened economy.
The stock dropped $3.85 to $21 in after-hours trading.
Software maker EXE Technologies (EXEE: Research, Estimates) said it expects a second-quarter loss due to continued weakness in information technology spending and it will cut 17 percent of its work force to lower costs.
Revenues for the second quarter of 2001 are expected to be between $25 million and $26 million. Based on these preliminary revenue estimates, EXE expects to report a loss of 8-to-11 cents per share before amortization, warrant and stock compensation expenses, reorganization charges and other one-time expenses. 
From staff and wire reports
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