Tech Stocks in Motion
Updated from 12:53 p.m. EST
Shares of Rockwell Automation (ROK) were among technology's winners Tuesday, rising 12.1% after the company raised its first-quarter outlook.
The automation-equipment maker now expects earnings of 65 cents a share on sales of $1.19 billion. Analysts polled by Thomson First Call had been expecting earnings of 48 cents a share on sales of $1.15 billion. The company cited growth in sales of its Logix suite, cost controls, and improving price and cost dynamics. Rockwell added that sales were strong across the board, showing strength in most end markets, regions and products. Shares traded up $5.59 to $51.85.
Advanced Micro Devices (AMD) fell 26.2% after the company warned of a sequential slowdown in earnings on sales that are expected to be up slightly. Fourth-quarter operating income is now expected to be "down significantly" from third-quarter operating income of $68.4 million, while sales are expected to slightly exceed the $1.24 billion reported in the third quarter, according to the company. "In a competitive and challenging NOR flash memory market, the Memory group is anticipated to have lower fourth-quarter sales and an operating loss," AMD warned. Previously, AMD said that flash memory sales would be flat to up on a sequential basis. Analysts had been looking for earnings of 19 cents a share on sales of $1.35 billion. AMD is due to report numbers on Jan. 18. Shares traded down $5.27 to $14.86.Shares of QLogic (QLGC) rose 7.9% after the company raised its third-quarter outlook. Excluding items, the storage area networks company now expects to earn 46 cents to 48 cents a share on sales of $148 million to $150 million, up from previous earnings guidance of 38 cents to 41 cents a share on sales of $136 million to $143 million. Analysts had been expecting earnings of 40 cents a share on sales of $140.9 million. Third-quarter sales performance was led by double-digit sequential growth in both host bus adapters and switches, the company said. Full third-quarter results will be released on Jan. 19. Shares traded up $2.66 to $36.41.
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