Shares of Sun up 15 percent after hours on better profit forecast

Shares of Sun Microsystems shot up in after-hours trading Tuesday after the company reported that its fourth-quarter profit may have beaten analysts’ expectations. The shares were up 15 percent from where they ended regular trading on Tuesday, according to our Bloomberg box. If that holds up in regular trading on Wednesday it would make for the stock’s biggest one-day gain since May 2001.

Sun said it expects to report profit in the range of 25 cents to 35 cents a share, excluding some items, on sales of between $3.73 billion to $3.8 billion. Analysts in a Bloomberg survey were expecting 27 cents per share in profit on $3.8 billion in sales.

After reporting a disappointing $34-million third-quarter loss in May, Sun Chief Executive Jonathan Schwartz said he would cut up to 2,500 workers, or 7.3 percent of the staff, to boost profit.

 

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