01 Feb Technology Sector Update for 02/01/2018: KEM,NOK,BABA
Top Tech Stocks
Technology stocks were firming Thursday, with shares of tech companies in the S&P 500 posting a more than 0.6% increase while the Philadelphia semiconductor index was showing a nearly 0.2% gain.
Among technology stocks moving on news:
– Kemet ( KEM ) was falling Thursday, reversing a more than 3% advance soon after the opening bell to sink as much as 11% to a session low of $18.14 a share before rebounding somewhat after the electronic components company said it was investing in a privately held startup that has developed an innovative manufacturing process and formed a joint venture to produce axial electrolytic capacitors, upstaging better-than-expected fiscal Q3 financial results. Kemet did not disclose how large of a stake it had in the Series-D venture round for Novasentis, which makes the thinnest, electro-mechanical polymer-based actuators available providing rich haptic feedback for a variety of applications. It also is forming a joint venture with China’s Jianghai Film Capacitor Co Ltd to make axial electrolytic capacitors and ( H )EV Film DC brick capacitors for distribution through the Kemet and Jianghai sales channels. Separately, Kemet reported non-GAAP fiscal Q3 net income of $0.52 per share, exceeding the $0.34 per share analyst consensus. Net sales rose almost 63% over last year to $306.4 million from $188 million, also topping the $295.7 million Wall Street estimate.
In other sector news:
+ American depositary shares of Finnish smartphone manufacturer Nokia ( NOK ) climbed almost 17% to reach an intra-day high of $5.61 each after it reported non-IFRS Q4 net income EUR0.13, or $0.16, per share, beating the Capital IQ consensus by EUR0.11 per share. Revenue was little changed at EUR6.65 billion, also exceeding the the EUR6.41 billion consensus.
– Alibaba Group Holding ( BABA ) fell over 6% to a session low of $191.14 per share after missing Street views with its adjusted fiscal Q3 net income of $1.63 per share, lagging the Capital IQ consensus by $0.03 per share. Revenue rose to $12.76 billion, also topping expectations by $40 million. It also raised its FY18 revenue outlook to now expect between 55% to 56% growth compared with its prior view looking for a 49% to 53% increase this year. The company also said it was acquiring a 33% equity stake in Ant Financial.
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