Tech Business Roundup: Rackspace Rocks Earnings, Yahoo Chaos
Sprint (NYSE:S) will not count the impact of the iPhone on the company’s profits while calculating employee bonuses, according to a regulatory filing. The result is that CEO Dan Hesse’s bonus will come in at $1.77 million; almost a quarter of a million more for 2011, with Sprint justifying the move by saying it did not have the iPhone on its radar when it set performance metrics last year.
Investing Insights: Rackspace Flies on Fourth Quarter Results.
Rackspace Hosting (NYSE:RAX) beat consensus for earnings during the fourth quarter. Benchmark sees trends driving similar performance in 2012, lifting shares to Buy from Hold with a price target of $60 from $45. The firm raises estimates “to reflect sustained high growth and solid margins,” seeing 30%-plus year-over-year Earnings Before Interest, Taxes, Depreciation and Amortization growth in 2012 and 2013.
Apple (NASDAQ:AAPL), according to the Wall Street Journal will offer a 4G LTE version of the iPad 3. Verizon (VZ, VOD)and AT&T (NYSE:T) will be among the companies to sell it. The arrival of a 4G iPad would be a slight positive for baseband chip supplier Qualcomm (NASDAQ:QCOM), though the unwillingness of many consumers to pay for an extra data plan has hurt sales of 3G tablets thus far.
Don’t Miss: How Badly is Apple Undervalued?
LivePerson (NASDAQ:LPSN) shares skyrocket after the firm reports largely in-line fourth quarter results and issues guidance for first quarter earnings per share at $0.08-$0.10 with full-year earnings per share estimated to be $0.40-$0.44.
Hewlett-Packard (NYSE:HPQ) says that digital press cost is $1 million-$2 million for each. With financing still tight, some print shop owners say they cannot afford the equipment. But, H-P’s printing division head, expecting sales growth of more than 20% a year, says that it “is the area of biggest growth for us.”
Yahoo (NASDAQ:YHOO) has called off talks to sell its Asian assets. After hitting a deal-breaking impasse over the efficacy of the centerpiece of the complex negotiation, there was a cash-rich split-off, according to reports from All Things D.
Investing Insights: Yahoo’s Asian Deal: Talk to the Hand.
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