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Apple warns on earnings Computer maker cites slow education, G4 Cube sales for shortfall September 28, 2000: 6:34 p.m. ET
NEW YORK (CNNfn) - Apple Computer warned on Thursday that its earnings for the fourth quarter ending Sept. 30 will be substantially below expectations because of slower-than-expected sales in September.
The Cupertino, Calif.-based company said that it expects to report revenue of between $1.85 billion and $1.90 billion, and earnings per diluted share, excluding investment gains, of between 30 cents and 33 cents, when actual results are announced on October 18.
Analysts had expected Apple (AAPL: Research, Estimates) to earn 45 cents per share for the quarter, according to estimate tracker First Call.
In response, Apple's stock plunged to $29 in after-hours trading, down 46 percent from its Thursday close of $53.50. The decline knocked about $8.9 billion off the company's market value.
Fred Anderson, Apple's CFO, said that the company's education-related sales, which normally peak during September, were lower than expected. In addition, its Power Mac G4 Cube is off to a slower-than-expected start, he said in a statement. Apple indicated that the sales slowdown is more than a one-quarter problem.
"We are currently re-evaluating our plans going forward, and will provide lower growth targets for next quarter and the next fiscal year when we announce our final results on Oct. 18," Anderson said.
"We've clearly hit a speed bump, which will result in our earning, before investment gains, approximately $110 million rather than the expected $165 million for the September quarter," said Steve Jobs, Apple's CEO. "Though this slowdown is disappointing, we have so many wonderful new products and programs in the pipeline, including Mac OS X early next year, and remain positive about our future."
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