| | | Chip earnings provide a sigh of relief for tech
6:21 PM ET 1/23/19 | MarketWatch
Earnings Watch: Texas Instruments, Lam Research and Xilinx beat on earnings, stocks head higher in late trading
Investors concerned about the big swoon for tech stocks at the end of last year received welcome news Wednesday afternoon.
Three large semiconductor companies announced earnings beats after the market closed Wednesday, a welcome respite from the barrage of poor forecasts and plunging stock prices for chip companies (http://www.marketwatch.com/story/you-should-be-worried-about-tech-stocks-and-here-is-why-2018-11-02) in the last round of quarterly results.
Texas Instruments Inc (http://www.marketwatch.com/story/texas-instruments-earnings-top-wall-street-estimate-2019-01-23).(TXN) , which was the canary in the coal mine for last quarter's miserable earnings season (http://www.marketwatch.com/story/texas-instruments-says-semiconductor-demand-is-slowing-sending-ripples-of-fear-across-the-sector-2018-10-23), beat on earnings, as did Lam Research Corp (http://www.marketwatch.com/story/lam-research-earnings-beat-expectations-after-ceo-departure-2019-01-23).(LRCX) , after installing a new CEO (http://www.marketwatch.com/story/lam-research-ceo-leaves-amid-misconduct-inquiry-fourth-chip-boss-this-year-to-face-such-allegations-2018-12-05), and Xilinx Inc (http://www.marketwatch.com/story/xilinx-stock-rises-after-revenue-beat-strong-guidance-2019-01-23). (XLNX) . Xilinx shares rose more than 8% in after-hours trading, Lam's gains topped 4% and Texas Instruments' stock was last up 1.5%.
Those earnings beats helped other chip companies in late trading, especially Lam's major competitors in supplying the equipment used to make semiconductors, Applied Materials Inc.(AMAT) and KLA-Tencor Corp.(KLAC) , which were both up more than 3% in after-hours action. Chip makers Nvidia Corp.(NVDA) , Analog Devices Inc.(ADI) and Maxim Integrated Products Inc.(MXIM) were up more than 1% in late trading. Earlier Wednesday, ASML Holding NV(ASML.AE) topped revenue and earnings estimates (http://www.marketwatch.com/story/asml-holding-profit-up-22-plans-to-lift-dividend-2019-01-23) and closed with a 1.6% gain, though Susquehanna analyst Mehdi Hosseini said that the earnings beat was driven by a change in the company's tax rate. |
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