Technology Sector Update for 01/26/2017: TER,STM,RGSE

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Technology stocks were falling for the first time this week, with shares of tech companies in the S&P 500 slipping about 0.4%.

In company news, Teradyne ( TER ) rose to its best share price since just after the dot-com boom years when the automation test equipment company last night said it more than doubled its year-ago Q4 non-GAAP earnings compared with the same period last year, breezing past analyst estimates.

Excluding one-time items, the company earned $0.32 per share during the three months ended Dec. 31, up from an adjusted profit during the same period last year of $0.13 per share and easily beating the Capital IQ consensus expecting non-GAAP earnings of $0.22 per share.

Revenue grew 20.3% year-over-year to $380 million, also topping the $348.01 million analyst mean.

Teradyne last night also increased its quarterly dividend by a penny - or about 16.7% - over its previous distribution to $0.07 per share, payable March 20 to shareholders of record on Feb. 24.

The company also is expecting non-GAAP net income in a range of $0.33 to $0.40 per share for the current quarter ending in March, exceeding the Street view by at least $0.03 per share. It also sees Q1 revenue coming in between $420 million to $450 million, also topping the $402.6 million consensus.

TER shares still were up more than 1% at $27.56 apiece in recent trade, previously climbing past $28 for the first time since March 2002 for a session high today of $28.68 a share.

In other sector news,

(+) STM, (+6.7%) Q4 EPS of $0.13 tops consensus by $0.02 per share. Revenue climbs 11.5% to $1.86 bln, also beating Street view by $10 mln. Sees Q1 revenue falling 2.4% from prior quarter to $1.81 bln, exceeding analyst mean by around $40 mln.

(-) RGSE, (-36.2%) Begins public offering of Class A common stock and Series K warrants. Expects Q4 net loss to widen to $10.5 mln from $4.2 mln last year while revenue is projected to fall 47% from last year to $5.1 mln. Analyst estimates were not available for comparison.

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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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