Technology Sector Update for 12/18/2015: RHT,BBRY,BB.TO,EMAN
Top Tech Stocks
Technology stocks were mostly underwater today, with shares of tech companies in the S&P 500 sinking nearly 0.9%.
In company news, shares of Red Hat Inc. ( RHT ) rose Friday after the top seller of Linux-based software edged out analyst opinion with its Q3 financial results and raised its FY16 revenue outlook.
Excluding one-time items, the company earned $0.48 per share during the three months ended Nov. 30, improving on a $0.42 per share profit last year and beating the Capital IQ consensus by $0.02 per share. Revenue rose 15% over year-ago levels to $524 million, also exceeding the $521.5 million analyst mean.
For the 12 months ending in January, Red Hat is expecting adjusted net income of $1.86 per share, topping the Street view by a penny. It also sees revenue coming in between $2.04 billion to $2.05 billion, up $100 million from its prior forecast range and matching the $2.04 billion consensus.
Following the Q3 results, analysts at RBC Capital Markets today raised their price target for Red Hat shares by $5 to $95, reiterating their Outperform rating for the stock, while Mizuho increased its price target by $4 to $92 a share. Also, Stifel and Needham & Co. both bumped their price targets for Red Hat by $8 to $97 and $98 a share, respectively.
RHT shares were up nearly 3% at $81.10 apiece, easing from a previous session high of $83.99 a share.
In other sector news,
(+) BBRY, (+11.7%) Adjusted Q3 net loss of $0.03 per share is $0.12 smaller than Capital IQ consensus. Revenue falls 30.9% to $548 mln, also topping Street view expecting $488 mln. Sees Q4 revenue growing over prior quarter, exceeding expections for $529.8 mln.
(-) EMAN, (-19.8%) Prices $6 mln direct offering of 4 mln shares at $1.50 apiece. Also issues warrants with 66-month term and exercisable at $2.05 a share.
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