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Wall Street Beat: Positive earnings news lifts tech shares

Marc Ferranti | Oct. 28, 2013
Microsoft shares hit a six-year high, as strong earnings news from Internet and IT vendors are boosting tech stocks

Storage giant EMC announced mixed results. EMC third-quarter consolidated revenue was $5.5 billion, an increase of 5 percent year over year. However, profit declined from $626 million to $528 million.

"Challenging macro conditions, including a doughnut for US Federal, continue to weigh on sector earnings and EMC's 3Q13," Sterne Agee analyst Alex Kurtz wrote in a research note.

EMC's virtualization technology subsidiary VMware, meanwhile, had more uniformly positive results. VMware sales were $1.29 billion, up 14 percent year over year, while profit increased 67 percent to $261 million.

Though Samsung Electronics is not traded on U.S. exchanges, its healthy earnings report Friday most likely helped fuel an air of optimism on the markets. Though the South Korean company said it experienced "intensifying market competition" in the mobile devices market, it nevertheless managed to drive profit up 25.6 percent year over year, to 8.24 trillion won (US$7.8 billion). Revenue came in at a record 59.08 trillion won, a year-over-year increase of 13 percent.

The flood of earnings reports will start to diminish next week, but a few large tech companies, including Facebook, will be reporting.

 

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