Technology

Technology Sector Update for 03/06/2018: LRCX,BZUN,CIEN,MTLS

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Technology stocks were hanging on to slim gains on Tuesday, with shares of tech companies in the S&P 500 adding just over 0.2% in value while the Philadelphia semiconductor index was posting a more than 1.5% gain.

Among technology stocks moving on news:

+ Lam Research ( LRCX ) rolled to a session high of $209.50 a share on Tuesday following a nearly 6% gain after the wafer fabrication equipment and services company unveiled plans to return at least half of its free cash flow to stockholders over the next five years through stock buybacks and dividend payments. The proposal includes a 120% increase in the company's quarterly dividend compared with its most recent distribution to shareholders as well as authorizing the repurchase up to $2 billion more of its common stock over the next 12 to 18 months. According to the company, the increase in the quarterly dividend to $1.10 per share will return about $7.02 million to Lam Research investors. The new stock buyback program adds to the $2 billon share repurchase program announced by the company in November 2017, doubling the prior authorization unless suspended or discontinued at any time.

In other sector news:

+ American depository shares of Baozun ( BZUN ) rose over 23% to a best-ever $45.26 apiece on Tuesday after the Chinese e-commerce platform reported better-than-expected Q4 financial results as well as revenue for the current quarter exceeding analyst estimates. Excluding one-time items, the company earned RMB2.72, or $0.42, per share, up from RMB1.26 per share in adjusted net income during the year-ago period and beating the Capital IQ consensus expecting RMB1.96 per share. Revenues grew 23% year-over-year to RMB1.57 billion, or about $240.6 million, also topping the RMB1.54 billion analyst mean. The company also is modeling total Q1 net revenue between RMB860 million to RMB890 million compared with the two-analyst Street view expecting RMB840.6 million. It also sees FY18 total net revenue rising above RMB5.10 billion.

+ Ciena ( CIEN ) climbed nearly 13% on Tuesday to a session high of $26.35 a share after reporting adjusted fiscal Q1 net income of $0.15 per share, slipping from $0.17 per share during the same quarter last year period but topping the Capital IQ consensus by $0.03 per share. Total revenue for the quarter rose to $646.1 million from $621.5 million last year and also beating the the $641.8 million analyst mean.

+ Materialise ( MTLS ) advanced Tuesday after reporting Q4 earnings and revenue exceeding Wall Street expectations. The 3-D printing software firm earned $0.04 per share during the three months ended Dec. 31, up from $0.01 per share in the year-ago period and doubling up the $0.02 per share Street view. Revenue rose 42.1% year over year to $53.6 million, also exceeding the $43.7 million analyst consensus. Looking ahead, the company is projecting around 28% revenue growth during FY18, or about $223.2 million to $229.4 million compared with the analyst consensus looking for $238.8 million in FY18 revenue.

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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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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