Stocks to Watch: Commerce One, Ericsson, eBay and Emulex

Larry Dignan
2 min read

Expect the following stocks to be on the move Friday: Commerce One, eBay, Ericsson and Emulex.

Commerce One (Nasdaq: CMRC)

Commerce One is the latest B2B titan to impress Wall Street. Just a day after Ariba's (Nasdaq: ARBA) break-even quarter, Commerce One moved up its profit timetable and topped estimates.

The company said its net operating loss was $14.7 million or 9 cents per share, compared with a net operating loss of $10.3 million or 7 cents per share in the year-ago period. Those results excluded interest, income tax and acquisition-related costs.

The latest results beat Wall Street's consensus forecast for a third-quarter loss of 12 cents per share, according to First Call Corp..

"We continue to make good progress on our path to profitability," Mark Hoffman, Commerce One's chief executive officer, said in a statement. He added that he expects the company to be profitable in the second quarter of 2001.

eBay (Nasdaq: EBAY)

eBay (Nasdaq: EBAY) easily beat the consensus analyst estimate in the third quarter.

After market close Thursday, the online auctioneer reported third quarter net income of $19.1 million, or 7 cents per share, excluding special charges. First Call's survey of 29 analysts predicted a profit of 4 cents per share for the quarter ended Sept. 30.

Shares of eBay shot up to 67 in after hours activity on the Island electronic communications network, immediately following the release of quarterly results. eBay stock rose 3.81 to 57.19 in Thursday's regular trading ahead of the earnings report.

Emulex (Nasdaq: EMLX)

Emulex reported first quarter net income of $12.85 million, easily surpassing Wall Street forecasts due to improved orders for its fiber channel adapters.

The company said its net income was 33 cents a diluted share, compared with $6.8 million, or 18 cents per diluted share, in last year's first quarter.

Analysts who follow the company had been forecasting a profit of 26 cents per share, according to First Call.

Revenues for the Costa Mesa, Calif.-based company rose to $55.5 million, up 92 percent from the $28.9 million reported in the year-ago period. Sequential revenue growth rose 31 percent from the previous month.

Ericsson (Nasdaq: ERICY)

Just a day after Nokia's (NYSE: NOK) great quarter, Ericsson spoiled the party.

Swedish telecom equipment maker Ericsson beat market expectations for nine-month profits on Friday, but cut its sales and margins outlook for 2000 and forecast a loss from its handsets twice as much as expected.

The world's third-largest mobile handset maker reacted to growing losses in its mobile handset unit by shifting resources to its highly profitable networks business -- building systems that mobile subscribers use -- where it is the world leader.

Ericsson has reported a tripling of its nine-month pre-tax profit to 24.1 billion crowns ($2.39 billion), above market expectations of 22.8 billion.>