Tech Stocks in Motion

Updated from 12:46 p.m. EDT

Shares of palmOne(PLMO) outpaced all technology stocks Tuesday after the company reported fourth-quarter earnings that easily beat expectations and after it raised earnings and sales guidance.

Excluding one-time items, palmOne reported earnings of 32 cents a share on sales of $267.3 million. Analysts polled by Thomson First Call were expecting the company to report earnings of 13 cents a share on sales of $256 million. Looking ahead, the handheld-computer maker expects to earn 12 cents a share on sales of $250 million to $260 million during the first quarter.

Analysts had been expecting break-even earnings on sales of $231 million. For fiscal 2005, the company said it expects to earn $1.15 to $1.25 a share on sales of $1.21 billion to $1.29 billion. Analysts were expecting earnings of 72 cents a share on sales of $1.13 billion. Shares of PalmOne traded up $7.90, or 36.8%, to $29.36.

Digital Recorders(TBUS) climbed after the company announced that its Digital Audio Corp. business unit received a security-related equipment order that will be used at the Summer Olympics. The company did not disclose financial terms but did say that while "this particular order is small, it does illustrate recognition of the utility of DAC's covert technologies in combating terrorism." Shares of Digital Recorders traded up 77 cents, or 12.9%, to $6.73.

Shares of Innovex(INVX) slumped after the electronics-device maker slashed its third-quarter sales outlook and warned that earnings would fall below expectations.

Instead of reporting a profit during the third quarter, it now expects to report a loss of 10 to 12 cents a share. Sales, meanwhile, are now expected to be $35 million to $36 million vs. the $39 million to $43 million it had forecast previously. Analysts had expected earnings of 12 cents a share on sales of $40 million. Shares of Innovex traded down 55 cents, or 11.7%, to $4.17.