Apple Computer shares surged Thursday after the revived computer-maker reported fiscal third-quarter profits that were far better than Wall Street expected.
Apple shares were up US$2.81, or 8.2 percent, at $37.25 in early afternoon Nasdaq trading. Earlier, the shares traded as high as $38.38, the highest level since late 1995.
After the market closed Wednesday, Apple said it had a profit from operations of $75 million, or 50 cents a share. That was well above the 34 cents Wall Street had expected.
Apple also said it expects its results to get even better in coming quarters. Chief Financial Officer Fred Anderson told investors in a conference call he expects the company to report year-over-year revenue growth by the December quarter, a first in three years.
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Baby Bells ring up profits: Two of the biggest regional Bell phone companies reported better-than-expected second-quarter earnings on Thursday, mostly because of surging demand for data services.
Ameritech's (AIT) second-quarter earnings rose to $695 million, or 63 cents, from $624 million, or 57 cents, in the same quarter last year. That figure just beat Wall Street's estimate of 62 cents a share.
Strong growth in data services and a 21 percent increase in demand for extras (such as caller ID) drove those gains, the company said.
SBC Communications (SBC) also bested analysts' estimates, reporting second-quarter earnings of $966 million, or 52 cents a share. The consensus estimate was 50 cents. Revenues from data services like ISDN jumped 35 percent during the quarter.
