Sector Update: Tech Stocks Narrowly Lower This Afternoon; Datalink Turns Higher After Q3 Earnings Match Street View
Top Tech Stocks
Technology stocks were narrowly lower Wednesday, with shares of technology companies in the S&P 500 declining about 0.3%.
In company news, Datalink ( DTLK ) was higher Wednesday after posting non-GAAP earnings that matched Wall Street expectations for the three months ended Sept. 30 and forecasting the current quarter below the Wall Street consensus.
The data-storage company earned $3.5 million, or $0.16 per share, during its fiscal Q3, up from a $818,000 profit during the same quarter last year.
Excluding one-time items, DTLK recorded non-GAAP net income of $4.2 million, or $0.19 per share, improving on a $0.13 per share gain during the same quarter last year and matching the analyst expectations for the period,
Revenue rose 4% year over year to $144.9 million, lagging the Capital IQ consensus by around $3.29 million.
For the current quarter ending in December, the company is projecting revenue in a range of $165 million to $175 million, lagging the Street view by at least $6.34 million. It also sees non-GAAP earnings of between $0.27 to $0.32 per share, in-line with the analyst consensus looking for a $0.32 per share Q4 adjusted profit. Including items, DTLK is expecting GAAP earnings of $0.20 to $0.25 per share.
DTLK shares reversed an early 11% decline to more recently trade around $11.55 apiece, rising nearly 5%. The stock has traded within a 52-week range of $8.61 to $15.84 a share, climbing about 11% over the past year heading into Wednesday's session.
In other sector news,
(+) UIS, (+22.9%) Q3 net income of $47.8 mln, or $0.95 per share, reverses $11.6 mln net loss last year. Excluding one-time items, it earned $1.30 per share, beating consensus by $0.27 per share. Revenue grows 11% to $882.5 mln, topping Street by $40.5 mln.
(-) NSPH, (-33.3%) Prices underwritten public offering of 40 mln shares at 50 cents per share, a 32.4% discount to Tuesday's closing price.
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