Top Tech

 | Jul 19, 2013 | 11:00 AM EDT  | Comments
  • Comment
  • Print Print
  • Print
Stock quotes in this article:

swks

,

cy

,

ibm

,

ebay

,

intc

,

goog

,

msft

The start to earnings season for the technology sector has been disappointing so far. eBay (EBAY) got hit Thursday after reporting earnings that were just in line with estimates. Unfortunately, revenue was a bit light and the company issued some tepid guidance as well. The shares fell about 7% in trading as a result. Intel (INTC) missed both earnings and revenue expectations and made some disparaging remarks during its conference call, which caused the stock to sell off 4% in yesterday's trading.

After the bell Thursday, both Google (GOOG) and Microsoft MSFT reported results that missed both on the top and the bottom lines and the shares are getting pushed down by disappointed investors in pre-market trading today. Both misses could be significant headwinds for the Nasdaq and the market on Friday. Even IBM (IBM), which rose decently after earnings Thursday, reported yet another quarter of declining revenues.

Earnings seem to be coming in better for the non mega-cap technology names. Let's take a look at two technology firms that managed to provide results that exceeded investors' expectations and delivered confident outlooks as well.

Mobile power amplifier provider Skyworks Solutions (SWKS) delivered quarterly results that gave investors lots of reasons to be positive on this technology stock. The company slightly beat on the top and the bottom lines while providing guidance for the next quarter that was above consensus. The company also announced a $250 million stock repurchase plan.

Skyworks has now slightly beat on consensus earnings estimates for six straight quarters. Analysts also expect double digit revenue growth from the company in both fiscal 2013 fiscal  2014. They also were generous with positive ratings on the company in the second quarter. Several firms, including Topeka Capital, Lazard Capital and B. Riley, either upgraded or initiated coverage on the shares with a Buy rating in the just completed quarter. The median price target on the stock right now is $30 a share. The stock is still cheap, trading at around 9x forward earnings, and the company has more than $400 million in net cash on its balance sheet.

Cyprus Semiconductor (CY) is another part of the tech community that provided a pleasant surprise when it released earnings Thursday morning. The company posted a profit of $0.14 a share for the quarter, which doubled consensus estimates. The company also beat consensus revenue estimates by more than 5%. As important, its management stated the earnings and revenue leverage will continue into the next quarter.

T.J. Rodgers, the outspoken CEO of this semiconductor maker, is no stranger to viewers of "Mad Money" where he has been bullish on the company's prospects recently. For income investors, the shares yield just under 4%. I would look for analysts to raise their estimates and price targets on Cypress in the next week or two on this robust quarter.

Columnist Conversations

Since Tuesday's low at 12.12, the VIX (SPX Volatility Index) has climbed to a high of 16.14, up nearly 34%. Mo...
I have a major support decision in IWM I will most likely write Friday's article on. As usual, wait for trigge...
Several large cap stocks are holding up better today than their beta-adjusted expected returns: BMY, PM, BA, K...
If you took the short side against the time/price resistance in ICE recently, trail stops down as you go...esp...

BEST IDEAS

REAL MONEY'S BEST IDEAS

Columnist Tweets

BROKERAGE PARTNERS

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.


TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.