Tech Stocks Taking Part in Market Rally; Bargain Shopping Limiting EZopen Slide After Q3, FY14 Warnings

By Staff,

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Top Tech Stocks

MSFT +0.92%

AAPL +0.78%

IBM +0.64%

CSCO +1.33%

GOOG +0.43%

Technology stocks are higher, with shares of technology companies in the S&P 500 advancing about 0.7%.

In company news, E2open ( EOPN ) is down just more than 3% at $19.75 a share, holding up relatively well after late Thursday warning it expects to post net losses in Q3 and FY14 significantly wider than analyst forecasts. The cloud-based logistics software company also is projecting quarterly and full-year revenues trailing consensus opinion.

Helping limit declines are Q2 earnings and revenue that beat analyst projections, along with several analyst recommendations saying investors should use Friday's price slump as a buying opportunity.

Looking forward, EOPN said it now expects a net loss of between $0.18 to $0.21 per share in Q3, lagging the Capital IQ consensus by at least $0.14. Revenue is expected in a range of $18.1 million to $18.6 million, or at least $2.2 million under the Street view for the quarter.

For FY14, the company is expecting a net loss of $0.53 to $0.57 per share compared with analyst estimates looking for a $0.34 per share loss. Revenue is seen coming in at $73.2 million to $74.2 million, or at least $3.42 million below Wall Street expectations.

In other sector news,

(+) OCLR, (+10.3%) Sells its fiber amplifier and micro-optics business to II-VI ( IIVI ) for $88.6 mln. IIVI expects the deal to be accretive to EPS in FY15. OCLR chief financial officer Jerry Turin also leaving the company, effective Nov. 8.

(-) SGI, (-7.9%) Cuts Q1 EPS outlook to $0.02 to $0.04 from $0.07 to $0.14. Also sees $147 mln in revenue, down from $160 mln to $170 mln. The Street is at $0.09 per share on $165.5 mln in revenue. Said government shutdown could reduce FY14 revenue by up to 10%.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright (C) 2014 All rights reserved. Unauthorized reproduction is strictly prohibited.

This article appears in: Investing Commodities
Referenced Stocks: EOPN , IIVI

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