Sun’s shares had slumped to a new post-bubble low at the end of last week as investors grew concerned that the worsening economic outlook, and turmoil in the financial services industry where Sun makes many of its sales, would further hold back any recovery at the troubled maker of servers and storage equipment, meanwhile the stock fall nearly 20 per cent in a week.
According to Sun's chief executive officer Jonathan Schwartz the company is expected to report revenues for the quarter of $3.725-3.8bn, a slight decline from the $3.835bn of a year before, with pro-forma earnings per share of 5-15 cents.
After these statements the shares bounced by $1.30, or nearly 15 per cent, in after-market trading, to $10.10.
Financial Times :
The reaction to the latest figures contrasted sharply with the mood three months ago, when a disappointing earnings report sent Sun’s shares into a slide and dealt a blow to the few remaining stock market optimists who had hoped the company’s fortunes were about to turn. However, analysts from Goldman Sachs warned earlier this week that though the latest quarterly figures were likely to show greater stability, Sun’s prospects were likely to be muted for at least the next year.
$9.24 (07/16/08)
