New York (CNN/Money) -
The technology sector will take the limelight Tuesday as investors look for action from Priceline and Adobe following Monday's earnings releases. In parallel, investors await numbers on the auto industry and personal income and spending.
Online travel auction house Priceline said after the bell Monday that it expects third-quarter earnings to come in below the Wall Street consensus.
Its shares were off almost 16 percent, to $19.99, in after-hours trading.
Priceline, which posted a higher quarterly profit as airline ticket and vacation package sales boosted business, said it expected current-quarter adjusted income of 25 cents to 30 cents a share, compared with the Wall Street average estimate of 31 cents.
Moving in the opposite direction, software maker Adobe Systems Inc. raised its third-quarter revenue and profit targets on increased demand for its Photoshop and document-sharing software, sending its shares higher.
Adobe (ADBE: Research, Estimates)'s shares jumped more than 5 percent in after-hours electronic trade to $44.15 after closing at $41.97 on Nasdaq. The company's shares are up about 7 percent on the year based on Monday's close.
Adobe, of San Jose, Calif., increased its revenue target to a range of $380 million to $400 million, and boosted its earnings forecast to a range of 36 cents to 41 cents a share for the third quarter ending Sept. 3. In mid-June, it forecast third-quarter revenue of $360 million to $380 million and earnings of 31 cents to 36 cents per share.
Analysts polled by Reuters Estimates were expecting third-quarter revenue of $372.3 million and earnings of about 34 cents a share, excluding items.
Companies releasing earnings statements Tuesday before the bell include Martha Stewart (MSO: Research, Estimates), PG&E Corp (PCG: Research, Estimates)., Tyco (TYC: Research, Estimates) and Wild Oats Markets (OATS: Research, Estimates).
Analysts expect earnings per share of 41 cents at Tyco and 51 cents at PG&E, according to Reuters Estimates.
Economic data set for release Tuesday includes reports on car and truck sales, and on personal income and spending.
According to Briefing.com, analysts expect new auto sales for July to come in at 5.6 million, up from 4.9 million in June. Truck sales are expected to be 7.7 million, up from 7.1 million in June.
Personal income for June is expected to increase by .3 percent from a .6 percent increase in May. Personal spending is expected to drop .1 percent for June compared to a 1 percent increase in May.
Also releasing earnings after the bell Monday was Principal Financial Group Inc., which said second-quarter profit fell, hurt by declining performance at its mortgage banking business.
The Des Moines, Iowa-based insurer reported second-quarter profit of $119.7 million, or 37 cents a share, compared with $202.2 million or 62 cents a share, a year earlier. Excluding items, the company reported earnings per share of 54 cents, compared with 51 cents a year ago.
Wall Street analysts on average expected earnings per share of 59 cents, according to Reuters Estimates.
The company said it expected 2004 earnings per share of $2.34 to $2.38, or $2.28.
In other news, Mutual fund firm Franklin Advisers Inc. will pay $50 million to settle charges that it allowed improper, rapid trading of its funds' shares, the U.S. Securities and Exchange Commission said Monday.
The settlement with California-based Franklin was the latest in a series between major mutual fund groups and the SEC centered on improper "market timing." Some recent cases have also involved illegal "late trading" of fund shares.
Franklin, a unit of Franklin Resources Inc., is adviser to many funds in the Franklin Templeton Investments group, the fourth-largest U.S. mutual fund complex, the SEC said.
International Business Machines Corp (IBM: Research, Estimates). said it has won a seven-year contract from Dow Chemical Co (DOW: Research, Estimates). to manage its global information technology infrastructure.
Financial terms were not disclosed. But industry sources said it was valued at as much as $1.4 billion.