Expect the following technology stocks to be among Tuesday’s most actively traded issues: info USA, Jabil Circuit, Manugistics and Solectron.
The marketing database provider will be active Tuesday after announcing it had laid off 325 employees, scaled back operations and plans to take a one-time, fourth-quarter charge to help pay for its restructuring, as it braces for a slowdown in sales.
``In view of the weakening economy and the likelihood of recession, we will be managing our business to maximize our high cash flow. By more closely matching revenues and expenses, the company expects to improve profitability and EBITDA in 2001, thus improving shareholder value,'' said Vin Gupta, chairman and chief executive, in a prepared release.
The job cuts include administrative and support functions as well as selective reductions in management of underperforming units, the company said. There were 63 job cuts in the company's majority-owned Internet subsidiary, infoUSA.com.
As a result of the cuts, infoUSA.com expects to be profitable by the first quarter of 2001.
The stock closed up 19 cents to $2.75 Monday.
Jabil Circuit will have some activity Tuesday ahead of its first-quarter earnings after the bell.
First Call Corp. consensus expects the contract electronics manufacturer to earn 26 cents a share in its first quarter.
Last quarter, it met analysts’ estimates when it posted a profit of $47 million, or 24 cents a share, on sales of $1.1 billion.
Jabil shares closed off $2 to $27 Monday.
Here’s another stock that will see heavy trading ahead of its third-quarter earnings report after the bell.
Analysts predict Manugistics will earn 3 cents a share in the quarter.
It had no trouble topping estimates in its second quarter, earning $1 million, or 4 cents a share, on sales of $58.2 million.
Manugistics shares closed off 75 cents to $46.69 Monday.
Solectron, much like competitor Jabil, should be on the move Tuesday after it easily topped analysts’ estimates in its first quarter, raking in $190.6 million, or 31 cents a share, on sales of $5.7 billion.
First Call Corp. consensus expected the contract electronics manufacturer to earn 28 cents a share in the quarter.
Ahead of the earnings report, Solectron (NYSE: SLR) shares finished off $1.32 to $26.72.
The $5.7 billion in sales marks a 101 percent improvement from the year-ago quarter when it earned $109.8 million, or 19 cents a share, on sales of $2.8 billion.
In the quarter, Solectron achieved gross profit margins of 8.5 percent, down from 8.7 percent in the fourth quarter.
Looking ahead, Solectron officials said the company expects to post sales of between $5.4 billion to $5.7 billion in the second quarter,
For the fiscal year, it sees sales in excess of $23 billion and earnings of between $1.22 to $1.25 a share.
First Call Corp. consensus expects Solectron to earn $1.15 a share in the fiscal year.