Weak Q4 Forecasts Send Tech Shares Down

VMware bucks the trend, beating analysts' forecasts

   

Real America Index e1328569156142 Weak Q4 Forecasts Send Tech Shares DownA sluggish economy is prompting computer and network equipment makers to trim their quarterly estimates as customers reduce spending on IT infrastructure.

Shares of Juniper Networks (NASDAQ:JNPR) tumbled more than 7% after the company predicted current quarter earnings of between 19 cents and 22 cents a share on revenue of between $1.1 and $1.13 billion. That missed Wall Street, which had expected of earnings of 24 cents a share on sales of $1.15 billion, Reuters noted.

12499015 electronic chip on circuit board 200x200 Weak Q4 Forecasts Send Tech Shares Down
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Juniper said that it earned 16.8 million during the third quarter, down from $83.7 million last year. Adjusted EPS was 22 cents, which beat analysts by 5 cents. Revenue edged up 1% to $1.12 billion, which also exceeded forecasts.

A lower current quarter forecast sent shares of Broadcom (NASDAQ:BRCM) down more than 2%. The company said that it expected revenue for the fourth-quarter to range between $1.95 billion and $2.1 billion. Analysts had expected revenue of $2.11 billion.

Broadcom reported third-quarter revenue of $2.13 billion, up from $1.96 last year and surpassing the $2.09 billion that analysts had expected.

A reduced outlook also sent shares of EMC (NYSE:EMC) down 2% after the company said that anticipates full year earnings of between $1.68 and $1.70 a share on revenue of between $21.60 billion to $21.75 billion. That disappointed analysts who had expected a profit of $1.72 a share on revenue of $22.03 billion.

For the third-quarter, EMC posted a profit of $626.3 million and adjusted EPS of 40 cents, which fell short of the 38 cents Wall Street was looking for. Revenue during the quarter rose 6% to $5.28 billion, but missed the $5.46 billion analysts had forecast.

EMC is part of InvestorPlace‘s Real America Index, a list of companies — one from each state — whose performance provides a window on the health of the U.S. economy. EMC represents the state of Massachusetts in the index.

In contrast to its parent, VMware (NYSE:VMW), the publicly-traded unit of EMC, announced third-quarter earnings that beat analysts estimates. The division earned $157 million during the quarter, down from $178 million last year. Adjusted EPS was 70 cents, which topped the 63 cents analysts were expecting. Revenue rose 20% to $1.13 billion, matching estimates.

VMware forecast current quarter revenue of between $1.26 billion and $1.29 billion. Wall Street anticipates revenue of $1.28 billion for the quarter. Shares of VMware rose more than 2% on the news.


Article printed from InvestorPlace Media, http://investorplace.com/2012/10/weak-q4-forecasts-send-tech-shares-down/.

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