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DJ Tech, Media & Telecom Roundup: Market Talk

· 02/06/2021 04:20

The latest Market Talks covering Technology, Media and Telecom. Published exclusively on Dow Jones Newswires at 4:20 ET, 12:20 ET and 16:50 ET.

2140 GMT - The benchmark S&P/TSX Composite Index rises 0.5% to close at a record 18135.90, up 4.6% for the week. The blue-chip S&P/TSX 60 Index gains 0.4% to a record 1073.65, ending the week 4.6%. higher as well. BlackBerry among the most active stocks, finishing up 8.3%. (maria.armental@wsj.com; mjarmental)

2116 GMT - Lawmakers in Virginia appear poised to pass consumer privacy legislation, which would make the commonwealth the latest domino to fall in a state-by-state push for data protections. The Senate of Virginia passed the Consumer Data Protection Act Friday, two days after the House of Delegates passed its version of the bill. After the chambers consult on their counterparts' proposals, lawmakers say final legislation could reach the governor's desk within weeks. (david.uberti@wsj.com)

1657 GMT - Ocado Group's cash and the prospects of its retail-technology business are likely to be a topic of interest in the online retailer and technology company's full-year results Tuesday Feb. 9. The group's tech business, which provides robotic warehouse systems to retail partners, needs to do more deals to expand, Hargreaves Lansdown says. Still, each new warehouse takes another bite out of Ocado's cash reserves, which will be important to watch, the brokerage says. "Profitability from [the tech business] is a long way off, but we'd like to see a timeline to success from management--even if it's just a rough outline," says analyst Laura Hoy. (philip.waller@wsj.com)

1557 GMT - Micro Focus International's margins, dividend and revenue are likely to be in the spotlight at the software company's full-year results Tuesday Feb. 9. Numis Securities points to a trading update in November in which the company forecast better-than-expected EBITDA margins and said a decision on the final dividend would be taken at annual results. "Perhaps the key aspect to results will be the tone of commentary around the different businesses--both those in stronger markets and those in weaker markets," says analyst Will Wallis. "Stabilizing the rate of decline in overall revenues is, in our view, the critical factor for Micro Focus." (philip.waller@wsj.com)

1555 GMT - Electronics distributor Electrocomponents may report better revenue in a third-quarter trading update Monday Feb. 8, though increased costs could limit gains, says Numis Securities. Numis expects revenue to have continued improving in the four months to January after underlying revenues recovered in the first half to September and the company confirmed continued momentum across the business in the first 10 weeks of the second half. "We therefore believe there is a good chance our revenue expectation could be beaten, though recent inventory stocking cycles--such as ahead of the Brexit transition in the U.K.--strengthened sterling and sustained high freight costs will likely temper any upside," says analyst David Brockton. (philip.waller@wsj.com)

0945 GMT - The agreement for RTL Group to sell its U.S. ad-tech company SpotX to Magnite for $1.17 billion in cash and stock is expected to strengthen the dividend payout for shareholders of the Luxembourg-based media company, Citi says. "The price RTL has received for SpotX is higher than we expected and shareholders should benefit from this as the capital gain will boost the dividend pay out in 2021," Citi says. The transaction is expected to close in the second quarter of 2021. RTL Group shares trade 6% higher at EUR46.56. (mauro.orru@wsj.com; @MauroOrru94)

0932 GMT - Dassault Systemes had a strong 4Q but newly issued non-IFRS guidance for 2021 is below consensus estimates, Berenberg says. The French software maker expects 2021 revenue to be between EUR4.72 billion and EUR4.77 billion, and operating margin around 30.8%. The revenue forecast is 1.1% below consensus of EUR4.81 billion, Berenberg says, while operating margin is almost in line with consensus. "We believe investors consider the guidance to be conservative, which aided the stock in reaching all-time highs," Berenberg says, as shares rose around 8% Thursday after 4Q results. Dassault Systemes shares trade 1.9% higher at EUR183.70. (mauro.orru@wsj.com; @MauroOrru94)

(END) Dow Jones Newswires

February 06, 2021 04:20 ET (09:20 GMT)

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