Technology Sector Update for 01/24/2017: MRCY,IIVI,MJCO

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Technology stocks were slowly building on their narrow gains from earlier in Tuesday's session, with the shares of tech companies in the S&P 500 rising about 0.4%.

In company news, Mercury Systems ( MRCY ) raced to a nearly 15-year high on Tuesday after the secure processing subsystems company reported fiscal Q2 net income and revenue exceeding analyst estimates and also projected above-consensus financial results for the current quarter and the year ending in late June.

Excluding one-time items, the company earned $0.30 per share during the three months ended Dec. 31, up from an adjusted profit of $0.23 per share during the same quarter last year and beating the Capital IQ consensus by $0.05 per share. Revenue jumped 62.3% over year-ago levels to $98 million, also topping the Street view by around $5.78 million.

For Q3, Mercury is expecting to earn between $0.29 to $0.32, ex items, on $103 million to $107 million in revenue. The Street is expecting $0.28 per share on just $96.38 million in revenue during the January-to-March period.

For FY17, it sees adjusted per-share earnings of $1.09 to $1.14, topping analyst estimates by at least a penny, while also raising revenue guidance excluding the impact of its CES acquisition during 2016 to a new range of $377 million to $384 million, up from $370 million to $380 million previously and straddling the $380.79 million consensus.

MRCY shares were up almost 10% at $34.51, easing from a prior run to their best price since March 2002 at $35.25 a share.

In other sector news,

(+) IIVI, (+11.5%) Adjusted fiscal Q2 EPS of $0.49 per share breezes past Street view by $0.23 per share. Revenue grows 21% over last year to $231.8 mln, also beating the $221.48 mln consensus.

(-) MJCO, (-7.8%) Fiscal Q3 EPS of $0.01 reverses a net loss of $0.03 per share during the year-ago period but still lags Capital IQ consensus by a penny. Revenue rises 1.3% to $30 mln, also missing the $32.8 mln Street view.

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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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