Where To Place Your Massachusetts Technology Bets
Behind that slow U.S. GDP growth were some surprising bits of positive news. Businesses spent 11.6% more on equipment and software, exports rose by 4.9%, and consumers, who account for 70% of GDP growth, boosted spending at a 2.7% annual rate.
That good news was offset by bad news in real estate and government spending. Investment in housing was down 4.1%; investment in commercial real estate tumbled 21%, and government spending declined 3.3%.
But the best number of the bunch -- the 11.6% rise in technology spending -- benefits Massachusetts significantly. Local economists attribute the state's 4.2% GDP growth to its leading companies getting an above average share of that corporate investment.
There are many Massachusetts-based companies that likely received a good share of that spending. Here are three:
- EMC Corp (EMC), a maker of data storage hardware and software, that reported first quarter earnings growth of 28% to $477 million on 18% revenue growth to $4.61 billion
- Thermo Fisher Scientific (TMO), a designer and builder of scientific instruments, that reported first quarter earnings growth of 8.5% to $252 million on 3.6% revenue growth to $2.7 billion
- Analog Devices (ADI), a semiconductor manufacturer, that reported first quarter earnings growth of 83% to $222 million on 21% revenue growth to $729 million
- EMC 1.63. At a P/E of 31, its earnings are forecast to grow 19% to $1.42 in 2012
- Thermo Fisher 1.92. Its P/E is 23 and its earnings are forecast to grow 12% to $4.55 in 2012
- Analog Devices 2.23. Its P/E is 15.4 and its earnings are forecast to grow 6.9% to $2.96 in 2012