Motorola: Wrong Numbers
Motorola is making a habit of surprising Wall Street with negative earnings forecasts. On Apr. 6, the day after it released sluggish first-quarter earnings, Motorola spooked investors with predictions of a bleak second quarter due to Asia's crisis and price pressure in cellular products. Shares fell 11%, to 53 1/2. Some analysts are downgrading 1998 earnings estimates more than 20%. "The heat is on to do something radical," says Hambrecht & Quist's Eric Zimits. The stock rebounded slightly, to 54 15/16, on Apr. 8.