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Computer Peripheral Earnings to Watch on Aug 4: SSYS & More

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As the second-quarter earnings cycle draws to a close, the picture that has emerged shows that we are still headed toward the fifth consecutive quarter of negative earnings growth. Encouragingly though, the rate of decline has slowed down modestly from the previous quarter.

For the Technology sector, total earnings are predicted to decline 0.1% on 2.7% higher revenues, marking an improvement over last quarter’s 4.5% earnings decline backed by a 0.4% improvement in revenues.

Based on the quarterly results of 84.6% of the Technology sector’s total market cap in the index that have been declared as of Jul 29, the industry has outperformed rather remarkably. Total earnings for these companies have dipped 0.9% on 2.1% higher revenues, with a whopping 83.3% beating earnings estimates and 77.8% exceeding top-line expectations.

At the Technology sector, the Computer Peripheral – Office Equipment space has proven to be the worst performer, having registered a year-over-year earnings decline of 25.7% on 9.4% lower revenues. However, encouragingly, the industry has witnessed a 100% beat ratio for both earnings and revenues as of Jul 29.

Among the companies lining up to report results this week, let’s find out what’s in the cards for these three Computer Peripheral Office Equipment stocks when they declare second-quarter 2016 results on Aug 4.

Stratasys Ltd. (SSYS - Free Report) operates as a manufacturer of 3D printers and materials. The company's systems are used by manufacturers to create models and prototypes to aid the new product design process. For the quarter, the company has an Earnings ESP of 0.00% and a Zacks Rank #3 (Hold).

The Zacks Consensus Estimate for the quarter is pegged at a loss of 7 cents. Last quarter, the company posted a positive earnings surprise of 60.00%. Notably, Stratasys has surpassed the Zacks Consensus Estimate in all of the four preceding quarters with an average positive surprise of 90.00%. (Read more: Can Stratasys Pull Off a Surprise in Q2 Earnings?)

STRATASYS LTD Price and EPS Surprise

STRATASYS LTD Price and EPS Surprise | STRATASYS LTD Quote

Immersion Corporation (IMMR - Free Report) develops hardware and software technologies that enable users to interact with computers using their sense of touch. For the quarter, the company has an Earnings ESP of 0.00% and a Zacks Rank #3.

The Zacks Consensus Estimate for the quarter is pegged at a loss of 12 cents. Last quarter, the company posted a positive earnings surprise of 57.14%. Notably, Immersion has surpassed the Zacks Consensus Estimate in all of the four trailing quarters with an average positive surprise of 156.82%.

IMMERSION CORP Price and EPS Surprise

IMMERSION CORP Price and EPS Surprise | IMMERSION CORP Quote

TransAct Technologies Incorporated (TACT - Free Report) designs, develops, manufactures and markets transaction-based printers and related products under the ITHACA, MAGNETEC and TRANSACT.COM brand names. For the quarter, the company has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell).

The Zacks Consensus Estimate for the quarter is pegged at 11 cents. Last quarter, the company posted a negative earnings surprise of 38.46%. TransAct Technologies has surpassed the Zacks Consensus Estimate twice and missed the same twice in the four preceding quarters, resulting in an average positive surprise of 18.80%.

TRANSACT TECH Price and EPS Surprise

TRANSACT TECH Price and EPS Surprise | TRANSACT TECH Quote

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