X

STOCKS TO WATCH: CSC, eToys, J.D. Edwards and TriQuint

3 min read

Expect the following technology stocks to be among Tuesday’s most actively traded issues: Computer Sciences, eToys, J.D. Edwards and TriQuint.

  • Computer Sciences (NYSE: CSC)

    The computer services provider will be in for some heavy trading Tuesday after it missed analysts’ estimates in its third quarter and lowered guidance for the fourth quarter.

    In the quarter, CSC earned $122.9 million, or 72 cents a share, on sales of $2.66 billion, missing the consensus estimate by 2 cents a share.

    The stock closed off $2.86 to $59.40 ahead of the earnings miss before slipping to $57.96 in after-hours trading.

    The company's earnings were hurt by currency effects, severance costs related to job cuts in the company's global consulting practices unit and lower-than-expected sales of software for the healthcare market, Chief Executive Officer Van Honeycutt said.

    Honeycutt told analysts to expect fourth-quarter earnings of between 92 cents and 95 cents a share, below the current First Call Corp. consensus estimate of 95 cents a share.

    Sales growth in the fourth quarter should be in the range of 12 percent to 15 percent if foreign currencies do not fall significantly against the U.S. dollar, Honeycutt told a conference call for analysts.

  • eToys (Nasdaq: ETYS)

    It’s not getting any better for the online toy seller.

    After the bell Monday, company executives said it laid off its remaining 293 employees and said that it only has enough cash on hand to survive until March 31.

    It also said it doesn't believe it will be able to secure additional capital and that it was informed by the Nasdaq that it no longer meets listing requirements and has been given 90 calendar days to return to compliance or risk being delisted.

    The stock closed up 3 cents to 27 cents ahead of the news before slipping to 16 cents a share in after-hours trading.

  • J.D. Edwards & Co. (Nasdaq: JDEC)

    J.D. Edwards will be heading south Tuesday after software developer warned that it will miss analysts’ estimates in its first quarter. It also named a new chief operating officer.

    Its shares closed off 44 cents to $14.63 ahead of the bad news before falling to $13.03 in after-hours trading.

    J.D. Edwards now expects to post sales of between $208 million and $218 million in the first quarter, down from $232 million in the year-ago quarter. It will post a loss of between 1 cent and 2 cents a share in the quarter.

    Analysts were expecting a profit of 1 cent a share in the quarter.

    The company said Hank Bonde will take over as its new operating chief, succeeding Dave Girard, who resigned.

  • TriQuint Semiconductor (Nasdaq: TQNT)

    TriQuint will be on the move following its strong fourth-quarter earnings report.

    In the quarter, it made $23.2 million, or 27 cents a share, on sales of $90.3 million.

    First Call Corp. consensus expected the chipmaker to earn 24 cents a share on sales of $89.1 million in the quarter.

    Its shares closed up $1.31 to 32.50 ahead of the earnings report before moving up to $35.31 in after-hours trading.

    The $90.3 million in sales represents an 83 percent jump from the year-ago quarter when it earned $10.2 million, or 12 cents a share, on sales of $49.4 million.

    Chief Executive Officer Steven Sharp said that while its mobile phone business, particularly sales to the likes of Qualcomm (Nasdaq: QCOM), Motorola (NYSE: MOT) and Ericsson (Nasdaq: ERICY) is slowing, TriQuint is leaving its sales and earnings estimates for the first quarter and the fiscal year unchanged.

    Sharp said the company expects to post sales of $94 million in the first quarter and $411 million in the fiscal year, in line with current estimates. It expects gross profit margins for the fiscal year of 52.5 percent and a profit of $1 a share.