Sector Update: Tech Stocks Speeding Out of Q4 Gate

Last Updated: Monday, October 3, 2022 1:53 PM | MT Newswires

Technology stocks were advancing on Monday, with the SPDR Technology Select Sector ETF (XLK) rising 2.7% while the Philadelphia Semiconductor Index was gaining 3.8% this afternoon.

In company news, ViaSat (VSAT) soared nearly 27% after the satellite-services company agreed to sell its Link 16 Tactical Data Links business, which connects over 20,000 US and allied military aircraft, vehicles and facilities, to L3Harris Technologies (LHX) for $1.96 billion, subject to customary adjustments. The TDL product line currently generates around $400 million in annual sales and will allow L3Harris to expand its communications and networking capabilities to a larger user base, the companies said. L3Harris shares were 2.9% higher this afternoon.

Vertiv Holdings (VRT) climbed over 18% after the electronics manufacturer Monday said CEO Rob Johnson will retire Dec. 31, citing health reasons, and will be succeeded by the head of its Americas unit, Giordano Albertazzi. Citing foreign exchange headwinds, the company also reaffirmed the lower end of its Q3 outlook expecting non-GAAP net income in a range of $0.20 to $0.26 per share on between $1.46 billion to $1.50 billion in sales. Analysts, on average, are expecting $0.22 per share and $1.49 billion, respectively, for the quarter ended Sept. 30.

InterDigital (IDCC) rose almost 17% after the wireless networking equipment firm raised its Q3 revenue outlook well above analyst estimates, now expecting between $112 million to $115 million in revenue for the three months ended Sept. 30, up from $96 million to $100 million previously. The three analysts polled by Capital IQ, on average, are looking for $98.8 million in Q3 revenue.

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