Excerpt from our Wall Street Breakfast, a one-page summary of this morning's key market-moving and stock-moving stories:
Summary: Palm Inc. cut its Q2 profit and revenue forecasts yesterday due to delays in shipping its new Treo 750 smartphones. Palm blamed the delays on a U.S. carrier who was late in securing the Treo 750's compatibility with its network, but would not name the carrier. Palm spokeswoman Marlene Somsak: "There are many, many steps and myriad attributes about the certification process. The phones have to be super well-tuned to the network." Palm said the 750 launch in Europe is doing "quite well." Palm's 750 runs on Microsoft's OS and uses a Samsung chip; its Treo 680 runs on Palm's OS and uses Intel chips. Palm now expects Q2 income of 10-11 cents/share, down from an earlier forecast of 15-18 cents; fiscal Q2 ends on Friday. Shares closed down 3.4% at $15.37, and continued to drop after hours trading as low as $13.90.
Related links: Media coverage: WSJ, TheStreet.com. Commentary: Palm's Warning, Delay May Increase Its Takeover Likelihood • Palm Warns - Stock Down 4% After Hours • Palm: A Gift for Value Investors • Palm's Cash Hoard Adds To Its Appeal • Palm Beats Estimates, Won't Reaffirm Yearly Guidance. Conference call transcripts: F1Q07 (Qtr End 9/1/06)
Potentially impacted stocks and ETFs: Palm Inc. (PALM), Microsoft Corp. (NASDAQ:MSFT), Intel Corp. (NASDAQ:INTC), Apple Computer Inc. (NASDAQ:AAPL), Nokia Corp. (NYSE:NOK), Motorola Inc. (MOT) • ETFs: iShares Dow Jones U.S. Telecom Sector Index ETF (BATS:IYZ), Vanguard Telecom Services ETF (NYSEARCA:VOX), PowerShares Dynamic Telecom & Wireless ETF (PTE), PowerShares Dynamic Hardware & Consumer Electronics (PHW), PowerShares Telecom ETF (PRFQ)
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