Tech Earnings Roundup: SAP, eBay and Nokia
The tech sector got a lift after SAP, eBay and Nokia met or surpassed Wall Street expectations for quarterly earnings. The companies also raised their outlook for future results.
Third-quarter roller-coaster: In Europe, where SAP earns most of its revenue, software sales rose 14 percent. But in the U.S., software sales rose merely 3 percent, or 11 percent at constant currencies.
However, SAP nailed deals with Wal-Mart Stores and Apple in the quarter.
Chief Executive Henning Kagermann said SAP will reach the top of its full-year sales guidance range, and foresees sales growth continuing at the same pace next year.
"We look forward to the remainder of the year, as we continue to invest in our business for future growth," Kagermann said in a statement. (Click For Full Report on SAP's Results.)
The Internet auction house posted a 53% increase in adjusted earnings for the third quarter and offered full-year guidance that topped expectations.
But factoring in the $1.39 billion writedown on the purchase of Web-phone service (VoIP) Skype, eBay posted a sharp net loss: $936 million, or 69 cents per diluted share, compared with a profit of $281 million, or 20 cents per diluted share, in the year-earlier quarter.
Investors saw the galss half-full: ebay shares rose some 8 percent in after-hours trading Wednesday, after closing at $40.60 during regular trade on the Nasdaq.
"Results were driven by a combination of somewhat stronger performance in our big markets, as well as newer, faster growing businesses," President and Chief Executive Meg Whitman said. She cited top markets in the U.S. and Germany. "I think we have good momentum going into Q4," Whitman said in a phone interview.
Other key revenue contributors were StubHub, the sports and entertainment ticket reselling site eBay acquired this year; and ad deals it has with Yahoo and Google. (Click For Full Report on EBay's Results.)
Nokia shares surged on Thursday, after the Finnish mobile phone maker issued better-than-expected third-quarter earnings on robust demand for cheaper phones.
In an interview with CNBC, Olli-Pekka Kallasvuo, chief executive of Nokia, said, "I'm pretty happy with the numbers. ...We have primarily taken market share in North America and China." The CEO said Nokia's global sales growth was "pretty good across the board."