In Tuesday's pre-bell trading, technology-focused exchange-traded funds (ETFs) XLK and XSD experienced a decline, dropping by 1% and 0.5%, respectively. This downtrend was mirrored in the shares of several technology companies, with NetScout Systems and Ericsson (BS:ERICAs) recording significant losses.
NetScout Systems, the network performance management and diagnostics company, saw its stock value plummet by over 22%. This steep drop came in the wake of the company's revised fiscal 2024 non-GAAP diluted earnings forecast. The new projection stands at $2-$2.20 per share, falling short of Capital IQ analysts' estimate of $2.27 per share. According to InvestingPro data, NetScout Systems has a market cap of 1660M USD and a P/E ratio of 26.35. The company's revenue for LTM2024.Q1 is 916.86M USD with a growth rate of 4.89%. Despite the revised earnings forecast, InvestingPro Tips reveals that the company has a perfect Piotroski Score of 9, high earnings quality with free cash flow exceeding net income, and holds more cash than debt on its balance sheet. This information can be found at InvestingPro.
Meanwhile, Ericsson, the Swedish multinational networking and telecommunications company, reported a Q3 loss of 9.21 Swedish kronor ($0.84) per diluted share. This result contrasts sharply with the earnings reported in the same period last year and has led to a more than 3% dip in the company's stock value. InvestingPro data shows that Ericsson has a market cap of 15.52B USD and a P/E ratio of 14.02. The company's revenue for LTM2023.Q2 is 26054.61M USD with a growth rate of 14.64%. Despite the Q3 loss, InvestingPro Tips indicates that Ericsson has raised its dividend for 4 consecutive years and pays a significant dividend to shareholders. More details can be found at InvestingPro.
Even companies announcing new partnerships were not immune to the broader market downturn. Thoughtworks, despite announcing a partnership with Hipages Group to create a comprehensive platform for tradespeople, saw its stock fall by over 2% in premarket activity. The impact of this partnership on Thoughtworks' long-term financial performance remains to be seen.
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