Analyst says "worst part" over for Sun
Shortly after the computing giant issued a profit warning for its second quarter, influential Goldman Sachs analyst Laura Conigliaro says the worst may be behind the company.
Shares were up 59 cents, or about 4 percent, to $17.61 by market close.
Conigliaro's latest research note is interesting mostly for its timing. Ahead of Sun's profit warning last week, Conigliaro cut her estimates. On Wednesday, her tone changed following a meeting with Sun management. Conigliaro is known on Wall Street for having strong contacts inside the companies she covers.
Sun is highlighting new products this week at its JavaOne trade show in San Francisco.
Other analysts, who have been trying to handicap Sun's future, agreed. A.G. Edwards analyst Shebly Seyrafi said Sun won't post sales growth until the first calendar quarter of 2002.
Last week, Sun said revenue for its fiscal fourth quarter ending June 30 will be in the range of $3.8 billion to $4 billion. Earnings, excluding charges, will be in the range of 2 cents to 4 cents a share, the company said. According to First Call, Sun had been expected to report a profit of 6 cents a share on revenue of $4.4 billion. The company will report its earnings July 19.