Technology Sector Update for 11/30/2016: ADSK,SCON,GWRE

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Technology stocks declined Wednesday, with shares of tech companies in the S&P 500 posting a 1.1% drop.

In company news, Autodesk ( ADSK ) retreated Wednesday after swinging to a Q3 non-GAAP net loss compared with a year-ago adjusted profit, missing some analyst estimates, while the design software firm also forecast revenue for the current quarter trailing Street views.

Excluding one-time items, the company recorded an $0.18 per share net loss during the three months ended Oct. 31, reversing a non-GAAP profit of $0.14 per share during the same quarter last year but still beating the Capital IQ consensus by $0.06 per share. Revenue fell 18% from year-ago levels to $490 million, also topping the $476.78 million consensus.

For Q4, the company is projecting a non-GAAP net loss of $0.39 to $0.32 per share, missing the Street view expecting a $0.31 per share adjusted loss. It also sees revenue falling compared with last year to a range of $460 million to $480 million, trailing the $488.5 million consensus.

Following the mixed results and forecast, Wedbush Wednesday raised its price target for Autodesk shares by $6 to $76 each, maintaining a Neutral rating for the stock. Analysts at RBC Capital Markets today also nudged their price target higher by $1 to $71 a share while also reiterating a Sector Perform investment rating for Autodesk.

ADSK shares were down more than 3% in after-hours trading at $72.61,recovering from a prior drop to $70.55 a share.

In other sector news,

(+) SCON, U.S. Department of Energy issues $4.5 mln contract to improve high temperature superconductor wire for the agency's next-generation electric machines program.

(-) GWRE, Sees adjusted Q2 EPS in a range of $0.12 to $0.15 per share, missing Street view by at least $0.05 per share. Revenue projected between $106 mln to $110 mln, lagging consensus estimate by $5.03 mln. Upstages better-than-expected Q1 EPS, revenue.

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) 2016 All rights reserved. Unauthorized reproduction is strictly prohibited.

This article appears in: Technology , Commodities
Referenced Symbols: ADSK , SCON , GWRE

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