ServiceNow posts strong Q3 results, Western Digital, Netgear solid
Technology earnings on Wednesday were solid with ServiceNow, Western Digital and Netgear all reporting.
Here's the rundown.
ServiceNow, makers of a cloud automation platform used for IT service and other functions, reported a third quarter net loss of 36.3 million, or 22 cents a share, on revenue of $357.7 million, up 37 percent from a year ago.
Non-GAAP earnings for the third quarter were 24 cents a share. Wall Street was looking for non-GAAP earnings of 21 cents a share on revenue of $352.2 million.
ServiceNow CFO Michael Scarpelli said the company's subscription billings were $363 million and grew 47 percent year-over-year.
For the fourth quarter, ServiceNow expects total revenues between $376 million and $381 million, which is in line with analyst estimates. For the year, ServiceNow expects about $1.38 billion.
ServiceNow's shares jumped nearly five percent in late trading.
Western Digital's fiscal first quarter sales exceeded expectations thanks to the rebounding PC market and demand for its hard drive and flash-based products.
The storage giant reported a net loss of $366 million, or $1.28 a share, on revenue of $4.7 billion. Western Digital's non-GAAP earnings for the fourth quarter were $1.18 a share.
Wall Street was expecting Western Digital to report non-GAAP fourth quarter earnings of $1.05 a share on revenue of $4.25 billion.
Western Digital noted that the quarterly loss is associated with the cost of its recent acquisition of SanDisk and debt extinguishment charges.
"Demand for both hard drive and flash-based products was strong across all customer categories, driven by cloud and mobile applications, as well as better-than-expected PC market trends," said CEO Steve Milligan. "We are encouraged by the uniformly positive response to the new Western Digital platform from our broadened customer base."
Netgear's third quarter results strong relative to expectations.
The networking company reported net income of $21.1 million, or 62 cents a share, on revenue of $338.5 million, a decrease of one percent. Non-GAAP earnings were 76 cents a share.
Wall Street was looking for earnings of 71 cents a share on revenue of $323.8 million.
For the fourth quarter, Netgear expects revenue to be in the range of $340 million to $355 million, which is comfortably above current analyst projections.