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Earnings Analysis: 
ATI Net Rockets up
Author: George Shopov
123jump.com



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ATI Technologies, one of the world’s top suppliers of computer graphics chips, reported a sharp rise in its quarterly profit, boosted by strong demand for desktop discrete products.

 
Bolstered by strong sales, ATI Technologies Inc. (ATYT: chart) said before market open Friday its fiscal 2004 first-quarter net earnings rose to $47.4 million, or 19 cents per share, from $7.3 million, or 3 cents per share, in the comparable period of fiscal 2003. The Markham, Canada-based provider of computer graphics chips and boards said revenue surged 40% to $469.7 million, in the quarter ended November 30, driven by strong demand for desktop discrete products. For the same period a year earlier, ATI reported revenue of $335.4 million. Excluding extraordinary items, the chip maker said it earned 19 cents a share in the first quarter, in contrast to a profit of 4 cents a share, a year ago. On that basis, analysts were looking for a profit of 18 cents per share, on average. ATI said it expects second-quarter revenue of $430 million to $470 million, which would be above analysts’ forecasts of $423.9 million.

The stock dropped 8 cents to close Friday at $14.62. Company shares inched up 3 cents to $14.65 in after-market trade.

Allegheny Energy, Inc. (AYE: chart) released after market close Friday its earnings reports for the first two quarters of 2003. The Hagerstown, Maryland-based energy company posted a consolidated loss of $58.8 million, or 46 cents a share, for the first quarter, in contrast to a loss of $54.4 million, or 43 cents a share, last year. For the second quarter, Allegheny recorded a consolidated loss of $231.5 million, or $1.82 a share, against a loss of $33.5 million, or 27 cents a share, a year ago. The company attributed the results to trading activities in the Western U.S. energy markets.

Company shares closed Friday up 5 cents, or 0.46%, at $10.85.

Vans, Inc. (VANS: chart) reported before the bell Friday a wider quarterly loss, hurt by losses in its skate park business. The Santa Fe Springs, California-based retailer announced a second-quarter net loss of $6.69 million, or 37 cents per share, compared with $3.67 million, or 18 cents per share, in the same period a year earlier. Sales increased to $65.2 million from $59.5 million, last year.

Vans shares soared 11.81% to $12.59 at market close Friday. The stock added 3 cents to $12.62 in after-hours trading.

Gucci Group N.V. (GUC: chart) posted Friday third-quarter operating income of €90.9 million ($112.1 million), a 17% increase from €77.7 million, in the year-ago quarter, on higher retail sales. The Netherlands-based maker of luxury goods said net profit was €53.1 million ($66 million), in the third quarter, compared with €53.0 million ($65.9 million), generated a year earlier.

Gucci shares closed Friday at $85.41, up 3 cents, or 0.04%.

Maxwell Shoe Company Inc. (MAXS: chart) of Readville, Massachusetts, said Friday it earned $4.8 million, or 31 cents a share, in its fiscal 2003 fourth quarter, in contrast to earnings of $4.1 million, or 27 cents a share, in the 2002 equivalent. Analysts had expected the shoemaker to post a profit of 29 cents a share, for its fourth quarter. The company said results were due to strong sales of certain brands.

The stock shed 9 cents on Friday to $17.91. Company shares slipped 0.50% to $17.82 in after-hours trading.

Cal-Maine Foods, Inc. (CALM: chart), the Jackson, Mississippi-based No.1 U.S. fresh egg producer, reported Friday that its quarterly profit rose due to increased usage of eggs in the high-protein diets. The company posted second-quarter earnings of $17.6 million, or $1.45 per share, compared with $2.0 million, or 17 cents per share, in the corresponding period a year ago. Net sales jumped to $149.9 million from $95 million.

Company shares soared 11.53% to close Friday at $33.38. The stock gained 10 cents to $33.48 in after-hours trading.

Palm Harbor Homes, Inc. (PHHM: chart) of Addison, Texas, said Friday it expects to report a quarterly loss, citing a poor manufactured housing market and higher material costs. The maker of multi-section manufactured homes said it sees a third-quarter loss in the range of 16 cents to 18 cents per share.

The stock slid 1.03% on Friday to $18.25. Company shares plunged 4.66% to $17.40 in after-market trade.

Endo Pharmaceuticals Holdings Inc. (ENDP: chart) said Friday it expects to report 2003 full-year earnings, on an adjusted basis, of $1.23 per share, above the average analysts’ estimate for a profit of $1.18 per share. The Chadds Ford, Pennsylvania-based pharmaceutical company said its forecast was driven by strong sales of its new pain product Lidoderm.

Company shares rose 5.14% to close Friday at $18.40. The stock added 10 cents to $18.50 in after-hours trading.

K2 Inc. (KTO: chart) of Carlsbad, California, reiterated Friday its fiscal 2003 fourth-quarter and full-year earnings guidance. The sporting goods company said it expects earnings of 5 cents a share, for the fourth quarter, on sales of $170 million. For fiscal 2003, K2 sees a profit of 41 cents a share, including charges, on sales of $690 million.

K2’s stock surged 9.22% to $15.40 at market close Friday.

ONEOK, Inc. (OKE: chart), the Tulsa, Oklahoma-based energy company, repeated Friday its prior 2003 financial outlook for earnings from operations of $2.08 to $2.12 per share. ONEOK said it expects results to be at the higher end of the forecast. For fiscal 2003, analysts had projected a profit of $2.10 a share, on average.

ONEOK shares edged up 65 cents on Friday to close at $21.55.
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