Sun: Q4 EPS Actually Missed; After Hours Rally Fades
The big after hours rally in Sun Microsystems (JAVA) shares, which took the stock up more than 10 percent, has now largely faded, with Street analysts nearly unanimous in their doubts about the near-term prospects for the company.
After the close yesterday, Sun announced that revenue for its fiscal fourth quarter ended June was $3.725 billion to $3.8 billion, with gross margin in the 44-45 percent range. Sun expects non-GAAP profits of 25-35 cents a share. The Street had been looking for $3.8 billion and 27 cents. While the pre-announcement was more or less in line with the consensus, the knee-jerk reaction from investors was to bid up the share in relief that the quarter wasn’t considerably worse. On second look, however, they seem less sure that the quarter was so impressive.
