Tech Stocks in Motion
Shares of Microchip Technology (MCHP) rose 2.3% after the chipmaker backed its first-quarter earnings and sales outlook. The company expects earnings of 28 cents a share on sales of about $218 million. Analysts are expecting earnings of 28 cents a share on sales of $217.6 million. The company said it posted record bookings in April and that May is continuing at the same pace. Shares traded up 67 cents to $30.
Jabil Circuit (JBL) fell 0.7% after the company backed its 2005 financial guidance. The company said that it still expects core earnings of $1.27 to $1.29 a share on sales of about $7.5 billion. Analysts are expecting earnings of $1.28 a share on sales of $7.5 billion. Including items, the company expects earnings of $1.09 to $1.11 a share. "The company does not comment on or provide customer-specific guidance," it said. "However, in light of an unsubstantiated news item posted online late yesterday afternoon, Jabil management said that its current guidance remained unchanged." Late Monday TheStreet.com reported that Lucent Technologies (LU) is preparing to end its manufacturing agreement with the company. Shares traded down 19 cents to $28.89.
Shares of ATI Technologies (ATYT) fell 6.7% after analysts raised concerns about the company's third-quarter prospects. Hans Mosesmann, an analyst at Moors & Cabot, downgraded shares to hold from buy, citing increasing evidence that growth is weaker than his firm had originally expected. As a result, the firm cut its price target on the stock to $19 from $29. Credit Suisse First Boston reiterated its outperform rating on the stock but cut its estimate for the third quarter to 18 cents a share, down from 21 cents. Analysts polled by First Call are expecting earnings of 21 cents a share on sales of $579.7 million. Shares traded down $1.10 to $15.29.
Other technology movers included Intel (INTC), up 37 cents to $25.70; Oracle (ORCL), down 14 cents to $12.21; Cisco Systems (CSCO), down 3 cents to $19.06; Microsoft (MSFT), down 3 cents to $25.46; Lucent Technologies (LU), unchanged at $2.86; Sun Microsystems (SUNW), up 2 cents to $3.98; and Applied Materials (AMAT), down 3 cents to $16.04.
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