H-P, Bank of America slip in late trades - MarketWatch
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SAN FRANCISCO (MarketWatch) -- Hewlett-Packard Co. shares fell in late trading Tuesday after the revenue forecast from the technology giant disappointed investors.
Elsewhere, Bank of America shares fell 5% on trading volume of 25 million shares.
CNBC reported Bank of America (BAC 11.15, -0.10, -0.89%) had priced a secondary offering of 825 million shares at $10 a share. The government's recent stress test indicated the bank would need almost $34 billion in new capital.
H-P shares lost 4%. H-P said fiscal third-quarter revenue would be flat to down 2% from the quarter ended April 30. It projected fiscal 2009 revenue to fall 4% to 5%.
In the latest period, H-P (HPQ 34.82, -1.76, -4.81%) reported a 17% drop in earnings for the second fiscal quarter as sales fell across nearly all the company's business lines.
The personal computer and printer giant said it earned 86 cents a share, excluding charges. Analysts polled by FactSet Research had expected a profit of 85 cents.
Revenue fell 3% to $27.4 billion. Analysts had projected $27.5 billion. Read full story.
In another earnings report, chip maker Analog Devices outpaced Wall Street's targets and gave a bright forecast. Its shares popped 8% in late trades.
Analog Devices (ADI 22.25, +1.67, +8.12%) reported net income fell 61% to $51.8 million, or 18 cents a share. Analysts had expected a profit of 9 cents. Revenue dropped 27% to $474.7 million. The consensus was for revenue of $428.3 million.
The company supplies chips used in a range of industrial equipment, consumer electronics and computers.
Analog Devices expects third-quarter adjusted earnings of 17 cents to 19 cents a share while revenue is projected to be flat compared with second quarter. Wall Street sees earnings of 11 cents a share on revenue of $443.5 million in the third quarter.
Clothing designer Phillips-Van Heusen (PVH 28.00, +0.12, +0.43%) reported first-quarter net income fell 47% to $24.7 million, or 48 cents a share. Excluding charges, the company said it earned 53 cents a share. Revenue slide 11% to 557.4 million.
Analysts had forecast Phillips Van-Heusen to earn 48 cents a share on sales of $517.2 million. The company owns the Calvin Klein and Izod brands.
Phillips Van-Heusen shares were little changed after the report.
Looking ahead, the clothing designer said 2009 adjusted earnings would be in the range of $2.05 to $2.30 a share on revenue of $2.3 billion to $2.33 billion. Analysts expect $2.19 a share on revenue $2.23 billion.
In the broader market, the Dow Jones Industrial Average closed at 8,474, down 29 points. The Nasdaq rose 9 points to 1,742