Markets

Technology Sector Update for 12/18/2015: RHT,BBRY,BB.TO,EMAN

Top Tech Stocks

MSFT -1.56%

AAPL -1.95%

IBM -0.97%

CSCO -0.79%

GOOG -0.77%

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.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Other Topics

Commodities