Tech Winners & Losers: Salesforce
05/22/08 - 02:49 PM EDT
Priya Ganapati
Tech stocks were up Thursday, helped in part by strong earnings reports from companies such as Salesforce.com(CRM Quote - Cramer on CRM - Stock Picks) and Synopsys(SNPS Quote - Cramer on SNPS - Stock Picks), as the major market indices gained on a pullback in oil prices.
Shares of Salesforce gained $4.34, or 6.9%, to $67.01 after it raised full-year guidance and reported strong revenue growth in the first quarter. First-quarter revenue grew 52% to $247.6 million, and topped Street expectations of $235.8 million. Profit grew to $9.6 million, or 8 cents a share, from $730,000, or 1 cent a share, a year ago. Analysts were expecting EPS of 7 cents. For the full year, Salesforce.com said it expects revenue to range from $1.06 billion to $1.065 billion, up from a previous projection of $1 billion to $1.02 billion and better than analysts' estimates of $1.045 billion in revenue. Shares of Level 3 Communications(LVLT Quote - Cramer on LVLT - Stock Picks) were up 33 cents, or 10.5%, to $3.49 after an analyst at Wachovia upgraded the stock to market perform from under perform on the belief that the company's fundamentals are improving. Electronic design automation software company Synopsys rose $1.24, or 5%, to $25.93 after it beat analysts' estimates for the second quarter and raised its full-year guidance. Synopsys guided revenue for the year in the range from $1.325 billion to $1.34 billion, up from its previous guidance for a range of $1.3 billion to $1.32 billion. Guidance for EPS, excluding items, was raised to a range of $1.60 to $1.64, from a prior range of $1.56 to $1.61. Analysts were expecting revenue of $1.32 billion and EPS, less items, of $1.61.
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