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Technology Sector Update for 07/20/2018: GNTX,SWKS,MSFT,EBIX


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Top Tech Stocks

MSFT +1.96%

AAPL -0.22%

IBM -1.88%

CSCO -0.92%

GOOG +0.05%

Technology stocks were firming in recent trading, with the shares of tech stocks in the S&P 500 ( XLK ) were adding just over 0.08% in value although the Philadelphia Semiconductor Index (^SOX) was falling nearly 0.4% this afternoon.

Among technology stocks moving on news:

Gentex ( GNTX ) was almost 6% lower Friday afternoon, scraping near its session low, after reporting Q2 financial results trailing Wall Street expectations and also cutting its FY18 sales guidance. The maker of dimmable aircraft and automobile windows earned $0.40 during the three months ended June 30, improving on $0.31 per share during the prior-year period but missing the Capital IQ consensus by $0.01 per share. Net sales also rose over the year-ago period, climbing to $455.0 million from $443.1 million last year but lagging the $469.1 million Street view. For the 12 months ending Dec. 31, Gentex lowered its sales outlook to a new range of $1.88 billion to $1.91 billion, reducing the bottom end of the guidance range by $10 million and top end by $60 million. Analysts, on average, are modelling $1.91 billion in annual sales.

In other sector news:

+ Microsoft ( MSFT ) was higher Friday, rising over 2% in recent trading, after the software and hardware company reported fiscal Q4 financial results topping Wall Street estimates. Excluding one-time items, the company earned $1.13 per share during the three months ended June 30, improving on $1.06 per share a year earlier and beating analyst forecasts expecting $1.08 per share. Revenue rose 17% year-over-year to $30.1 billion, also exceeding the $29.23 billion estimate. Revenue from the company's Azure cloud-computing service soared 89%, helping drive total annual revenue above $100 billion for the first time ever. Following the better-than-expected results, analysts at BMO Capital Friday raised their price target by $16 to $125 a share while RBC Capital Markets increase its price target by $13 to $128 a share. Both brokerages also reiterated their respective Outperform stock ratings for Microsoft.

+ Ebix ( EBIX ) was rising over 1% this afternoon, overcoming a nearly 1% decline earlier Friday that followed the software company saying it has purchased India-based Indus Software Technologies Pvt Ltd for $29 million plus a $5 million contingent earn-out payment. Ebix said Indus generated around $22 million in revenue during 2017 and is expecting the deal will immediately add to its per-share earnings, adding $0.19 per share yearly after it is fully integrated.

- Skyworks Solutions ( SWKS ) was more than 5% lower Friday, turning negative soon after opening with a nearly 1% advance, despite reporting fiscal Q3 financial results exceeding year-ago comparisons and analyst estimates. Excluding one-time items, the specialty chipmaker earned $1.64 per share, topping the Capital IQ consensus looking for normalized per-share earnings of $1.60. Revenue fell 0.7% year over year to $894.3 million but still beat the $889 million Street view. For the current quarter, Skyworks is projecting non-GAAP net income of $1.91 per share on 11% to 13% revenue growth. That compares with the analyst consensus expecting normalized EPS of $1.88 on 1.2% sales growth to $996.5 million. The company also raised its quarter dividend by 19% over its most recent distribution, paying $0.32 per share on August 28 to shareholders of record on August 7. At least four analysts Friday raised their price targets for the company's stock, including a $9 increase to $125 at B Riley FBR, and an $8 bump to $118 a share at Needham & Co. Cowen and Craig Hallum both raised their price targets by $5 to $105 and $120 a share, respectively.

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

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This article appears in: Technology , Commodities
Referenced Symbols: XLK , GNTX , MSFT , EBIX , SWKS



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