Top Tech Stocks
Technology stocks continued to add to their small gains from earlier in Wednesday trading, with shares of tech companies in the S&P 500 climbing slightly more than 0.2%.
In company news, Cree ( CREE ) shares jumped to a 32-month high on Wednesday, climbing over 20% to its best share price since February 2015 at $35.39 apiece, after the company last night reported fiscal Q1 financial results matching analyst expectations and the company’s new CEO today promising big changes ahead for the producer of light emitting diodes and specialty semiconductors.
New boss Gregg Lowe said he was beginning a likely overhaul at the company with an audit to determine how its three business lines are performing and then factoring those results into a new strategic plan. Lowe declined to say how long the upcoming review will take, telling analysts and investors during a conference call today the company will spend “a lot of time digging” before coming “out guns a-blazing and moving in a direction we think has the best opportunity to drive shareholder value.
Lowe’s comments followed Cree last night posting in-line Q1 financial results. Excluding one-time items, the company earned $0.04 per share during the three months ended Sept. 24, falling from a $0.15 per share profit during the year-ago period. Revenue also declined compared with the same quarter last year, dropping 3% year over year to $360 million.
Those results also may helped calm Wall Street worries over the current quarter at Cree. The company is projecting Q2 non-GAAP net income ranging between a $0.01 per share net loss to a $0.04 per share non-GAAP profit and also sees revenue coming in $10 million either side of a $350 million mid-point.
That compares with adjusted Q2 net income of $0.20 per share on $346.96 million in revenue during the year-ago period and analyst means expecting a $0.07 per share profit on $368.01 million in revenue during the three months ending Dec. 24.
In other sector news,
(+) IBM, Non-GAAP Q3 EPS of $3.30 improves on $3.29 per share profit during same quarter last year and beats the Capital IQ consensus by $0.02 per share. Revenue slips 0.4% from last year to $19.15 bln, topping the $18.63 bln Street view. Reaffirms above-consensus FY17 earnings outlook.
(-) SRAX, Discloses plans to explore strategic alternatives for its SRAXmd health care business, including spinning off the unit into a standalone public entity or a potential sale in addition to other possible transactions.
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