Computer maker Gateway Inc. warned Wednesday that its fourth-quarter earnings would be nearly half of what Wall Street analysts anticipated because of"considerably" weaker holiday sales than what it expected.
The San Diego-based company said it now anticipates earning 37 cents per share during the quarter ending Dec. 31, well below the 62 cents analysts polled by research firm First Call predicted. Gateway also said its fourth-quarter revenue would total $2.55 billion, about equal to what it recorded during the same period last year.
Gateway shares fell $1.98 to $29.02 in trading on the New York Stock Exchange Wednesday. The warning was issued after the markets closed for the day.


Altera Corp. warned that revenue for the current quarter would be more than 11 percent below forecasts, as it blamed inventory reductions by customers.
The company that makes computer chips known as programmable logic devices said that revenue should be about $395 million. The company said with hindsight it now sees that customers in the DSL sector who overbought in the first three quarters of the year have pulled back on purchases.
Analysts surveyed by earnings tracker First Call had forecast sales of $445.8 million for the period. Altera (ALTR: Research, Estimates) had sales of $237.3 million in the year ago quarter.


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