Fool.com: Gateway Feeling Good (Breakfast News) August 10, 1999

BREAKFAST WITH THE FOOL

Tuesday, August 10, 1999

"A great wind is blowing, and that gives you either imagination or a headache."
-- Catherine the Great

Gateway Feeling Good

PC direct seller Gateway (NYSE: GTW) is looking forward to a strong second half of 1999, the company said last night.

"We remain confident on the outlook for the balance of the year," said CFO John Todd in a press release sent out after yesterday's market close. "Our core PC business remains very strong, and with increasing income from expanding revenue streams such as gateway.net, financing and peripherals, we're well-positioned to continue driving shareholder value into the future."

Todd's statement was packaged along with Gateway's announcement of a 2-for-1 stock split effective Sept. 7.

The company didn't address specific earnings or other financial expectations in its statement. Wall Street is looking for full-year EPS of $2.83, up nearly 30% from last year's result.

For a recap of Gateway's second-quarter earnings conference call courtesy of the Fool's Dale Wettlaufer, whose Boring Portfolio holds the company, please visit the portfolio's archives and this Fool on the Hill column. For the first half, the company reported EPS of $1.18, $0.03 better than expected.

In other news, Gateway lost CIO Maynard Webb, 43. Webb will lead the engineering staff at online auctioneer eBay (Nasdaq: EBAY), which could use the help.

News to Go

Networking equipment maker Cisco (Nasdaq: CSCO) is scheduled to reported fiscal Q4 EPS after the market's close today. Wall Street's consensus EPS estimate is $0.20, up $0.04 from last year. Click here for a Foolish look at Cisco's new deal with accounting and consulting firm KPMG.

Computer printer maker Lexmark International (NYSE: LXK) will replace electronic components maker Raychem Corp. (NYSE: RYC) in the Standard & Poor's 500 Index after the close of trading on Thursday.

Telecommunications equipment company Lucent (NYSE: LU) announced the acquisition of internal computer networks designer International Network Services (Nasdaq: INSS) in a $3.7 billion, or $55 per share, stock deal.

Management consulting firm Navigant Consulting (NYSE: NCI) plans to buy back 3 million shares of its common stock either on the open market or in private transactions. The company told Bloomberg it has 43.5 million shares currently outstanding.

Health-care and deathcare firm Hillenbrand Industries (NYSE: HB) said fiscal Q3 earnings from continuing operations are expected to come in between $0.25 and $0.30 below First Call's $0.64 consensus estimate, not including an unexpected Medicare-related charge that could take as much as $0.09 per share away. The company "no longer expects record earnings for the year," sure to disappoint the analysts who were looking for EPS of $2.79. "In contrast to the second quarter earnings shortfall, which was primarily cost-driven," the company said, "the unexpected shortfall in the third quarter is primarily revenue-driven."

More Foolishness

Click here for a closer look at July retail same-store sales numbers... Check out a StockTalk interview with the CEO of Adobe Systems (Nasdaq: ADBE)... Learn more about IPOs in this Foolish feature...Take a look at the Fool's Daily Double area, this week focusing on Argosy Gaming (NYSE: AGY).

By Dave Marino-Nachison (TMF Braden)


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