Several companies based in Utah or with ties to the state reported quarterly earnings Wednesday.
Intel
Intel Corp. said first-quarter profit sank 38 percent, the biggest decline in more than four years, as the world's biggest computer-chip maker lost market share to Advanced Micro Devices Inc.
Net income fell to $1.35 billion, or 23 cents a share, from $2.18 billion, or 35 cents, a year earlier, the company, based in Santa Clara, Calif., said in a statement. Sales dropped 5.2 percent to $8.94 billion.
Intel has about 350 workers in Riverton.
The report marked the first revenue decline in 12 periods. Less than a year into Chief Executive Officer Paul Otellini's tenure, Advanced Micro is eating away at his company's orders and raising concern Intel may have lost its technology lead. While the forecast trailed some analysts' estimates, it wasn't as bad as some investors feared.
"It's a little bit of a relief," said Tim Allen, who helps manage $7.8 billion, including Intel shares, in Seattle for Wentworth, Hauser & Violich. "It's not a total catastrophe. It looks like they're saying the second quarter is the bottom."
The shares rose 34 cents to $19.90 in extended trading after the report. They had gained 17 cents to close at $19.56 in Nasdaq Stock Market composite trading and are down 22 percent in 2006.
Intel missed its profit forecast in the fourth quarter and a month ago reduced its estimates for the first period. Twenty-three analysts recommend buying shares, 26 suggest holding them and three tell clients to sell.
Utah Medical Products
Midvale-based Utah Medical Products Inc. reported net income of $2.04 million, or 50 cents per share, for the quarter ended March 31, 2006, compared to net income of $1.97 million, or 46 cents per share, for the same period of 2005.
Net sales totaled $7.1 million for the 2006 quarter, compared to $6.7 million last year.
Utah Medical said a 3 percent increase in operating profits for the quarter was smaller than the growth in sales and gross profits because of higher operating expenses from an increase in sales and marketing expense, higher legal fees and the non-cash expense associated with expensing unvested stock options. However, the higher operating expenses were largely offset by higher non-operating income from the investment of cash balances.
Utah Medical develops, manufactures, assembles and markets specialty medical devices.
The company's stock fell 40 cents Wednesday to close at $31.50 per share on Nasdaq. In the past year, the price has ranged from $20.20 to $33.50.
Honeywell
Honeywell International Inc. said its first-quarter earnings jumped 22 percent, boosted by a stronger performance in its aerospace and automation and control businesses.
The diversified manufacturer, which has an automotive filter plant in Clearfield, said net income increased to $436 million, or 52 cents per share, from $358 million, or 42 cents per share, a year ago.
It was not an exact comparison, because new accounting rules now require companies to recognize the costs of their employee stock options. Honeywell's options for the first quarter cut into net income by 2 cents per share, or $25 million. While the company did not publicly document stock option costs last year, a company spokesman said it would have been $22 million.
The results exceeded Wall Street expectations. Sixteen analysts surveyed by Thomson Financial had predicted net income of 49 cents per share — including stock option costs — and sales of $7.18 billion.
Sales grew 12 percent to $7.24 billion from $6.45 billion in the year-earlier period due to growth across most segments, including a 5 percent gain in aerospace and a 19 percent rise in automation and control solutions, which include building security devices and thermostats.
Shares of Honeywell, which have been trading in a 52-week range of $32.68 to $44.48 per share, fell 63 cents, or 1.4 percent, to close at $43.53 on the New York Stock Exchange.
eBay
EBay Inc., the world's largest online auctioneer, said first-quarter earnings fell 3.1 percent on stock option expenses. The company's profit and sales forecasts for this year fell short of analyst estimates, driving the shares down as much as 7.4 percent.
Net income was $248.3 million, or 17 cents a share, down from $256.3 million, or 19 cents, a year earlier, the company, based in San Jose, Calif., said in a statement. Excluding 4 cents in options costs and other items, the company earned 24 cents a share, matching analyst estimates.
EBay, which has operations in Utah, increased revenue 35 percent to $1.4 billion, helped by the acquisition of Shopping.com and Skype Technologies SA. The company forecast sales this year of up to $5.9 billion, below the $5.96 billion estimated by analysts. Profit for 2006 may be 7 cents less than Wall Street forecasts, eBay said.
Shares of eBay fell $2.14 to $38.21 at 4:43 p.m. after the close of U.S. stock markets. The stock rose $1.47, or 3.8 percent, to close at $40.35 in Nasdaq Stock Market composite trading.
Contributing: Bloomberg News; The Associated Press