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Tech Industry

Gateway to split 2-for-1

Gateway Inc. (NYSE: GTW) pleased its investors Monday when it announced a 2-for-1 stock split. Its shares closed up 2 1/2 to 77 5/8 ahead of the announcement.

The split will take effect Sept. 7 for all shareholders of record on Aug. 20.

"We're delivering on our commitments to shareholders at each and every turn," said CEO Ted Waitt in a prepared release. "Our revenue stream is more diverse than ever and quarter by quarter, our financial performance is rock solid and consistent."

Following the split, the company will have more than 315 million shares outstanding.

Last quarter, Gateway beat Street estimates by a penny a share, earning $89 million, or 56 cents a share, on sales of $1.9 billion.

First Call consensus expects it to earn 68 cents a share in its third quarter and $2.83 a share in the fiscal year.

"With the number one consumer desktop in the United States and with a rapidly expanding presence among small and mid-sized businesses, it only makes sense that our shares should be as widely accessible as our products," said COO Jeff Weitzen in the release.

The stock surged to a 52-week high of 84 1/2 in February after falling to a low of 36 1/8 in October.

Twenty-one of the 23 analysts following the stock maintain either a "buy" or "strong buy" recommendation.