Chris Lau, Kapitall: Earnings season can bring many surprises. So should you keep an eye on these tech stocks?
When a stock falls 10% or more in a single day, investors should notice. A company may have had a bad quarter or may simply be ripe for profit-taking. Three tech stocks that fell by this magnitude after recent earning reports merit further investigation.
Click on the interactive chart to see analyst ratings for these tech stocks to watch over time.
Heavy reliance on single customer InvenSense ( INVN ) makes motion sensors for consoles and tablets. It relies on Samsung (OTC:SSNLF) for over 30% of total revenue. The company guided third quarter revenue and earnings lower than consensus. [Read more on Tech from Kapitall: Is the Nokie Lumia Big Enough to Boost Windows 8?] InvenSense expects revenue to be $65 – $68 million, with earnings as high as $0.18 per share. The consensus was $0.22 per share on revenue of $76.6 million. The trouble for InvenSense may be that it built up inventory, but did not yet have firm orders from console companies to include in its forecast. Cirrus Logic ( CRUS ) also relies heavily on one customer: Apple (AAPL). Investors were disappointed that Cirrus lowered its gross margin forecast from 52% down to between 45% – 47%. The current quarter was supposed to be the company’s strongest quarter. Hazy forecast And Silicon Graphics ( SGI ) deferred providing guidance, giving investors a reason to sell shares. The company blamed a lack of clarity on expected government spending. In its last quarter ended September 27, Silicon Graphics earned $0.04 per share, beating estimates by $0.02 per share. Revenue was $148 million.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts