Technology Sector Update for 01/30/2018: NCTC,CALD,SAP,MXIM,AAPL

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Top Tech Stocks

MSFT -1.11%

AAPL -0.77%

IBM -1.94%

CSCO -1.27%

GOOG -0.62%

Technology stocks declined Tuesday, with shares of tech companies in the S&P 500 losing over 0.8% in value today while the Philadelphia semiconductor index was posting a nearly 1.9% decrease.

Apple ( AAPL ) declined Tuesday following reports the tech giant may delay certain key features that normally would be released later this year in the company’s fall update. While core features such as the combined apps platform are still set to be unveiled this year, some flashier changes like the redesigned home screen likely will probably be held back until 2019, Bloomberg said, citing a person familiar with the matter.

Among technology stocks moving on news:

+ NetScout Systems ( NTCT ) jumped out to an 8% advance on Tuesday, reaching a session high of $28.20 a share, after the performance analytics company exceeded Wall Street expectations with its Q3 net income and revenue. Excluding one-time items, the company earned $0.69 per share, up from $0.60 per share during the year-ago period and beating the Capital IQ consensus by $0.02 per share. Revenue fell 12.7% from the same quarter last year to $272 mln, narrowly topping the $271.4 mln analyst mean. The company also reiterated its FY18 outlook expecting adjusted EPS between $1.30 to $1.45 on GAAP revenue in a range of $985 mln to $1.02 bln. Non-GAAP revenue is seen in a range of $1 bln to $1.03 bln. Analysts, on average, are looking for adjusted net income of $1.37 per share on $1.01 bln in revenue.

In other sector news:

+ Callidus Software ( CALD ) climbed almost 11% to a new, all-time high of $36.25 a share on Tuesday after agreeing to a $2.4 bln buyout offer from German software giant SAP SE ( SAP ). Callidus investors will receive $36 for each of their share, a 10.1% premium over Monday’s closing price. SAP is expecting the transaction will “essentially” be neutral to its non-IFRS per-share earnings during FY18 before becoming accretive in FY19. A Q2 closing is anticipated, subject to shareholder and regulatory approvals.

– Separately, SAP ( SAP ) was lower today after today reporting an adjusted Q4 profit of EUR1.77, or about $2.19, topping the Capital IQ consensus expecting $1.55 per share. Revenue grew to EUR6.81 bln from EUR6.72 bln during the same period last year but came in somewhat shy of the $6.86 bln consensus.

– Maxim Integrated Products ( MXIM ) dropped over 8% on Tuesday after Japan’s Renesas Electronics denied broadcast reports it was in talks to buy the U.S. chipmaker. Maxim shares closed 12% higher yesterday, reaching its best price since 2000, after CNBC reported the companies were talking about a potential tie-up worth as much as $20 bln. “Certain media reports were published today that Renesas is in talks for a possible acquisition,” Renesas said in a statement. “They were not based on a Renesas announcement and the company denies such speculations in the reports.”

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