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Software Stocks to Post Earnings on Oct 26: VMW, FFIV & More

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All eyes are on the technology sector this week as a number of software companies gear up to report their quarterly numbers.

At the end of the last week, we had results from 116 S&P 500 members, together accounting for 23.2% of the index’s total market capitalization. Total earnings for these members were down 3.3% from the year-ago period on 1.8% higher revenues. Of these, 80.2% beat earnings estimates while 62.9% reported better-than-expected top-line numbers. Overall, it appears that Q3 will likely be a tad better than Q2.

In sync with the trend, results from the dynamic tech sector are also expected to be better than the previous quarter. According to our model, consolidated earnings from the sector are now expected to be up 1.1% year over year on 1% decline in sales.  But if we exclude Apple (AAPL - Free Report) , earnings for the rest of the sector are expected to surge a healthy 6.4%. This is because despite the possibility of a beat this season, Apple’s results will still be muted compared to the prior-year quarter.

But notably, within the tech space, software stocks get the most attention because of consistently increasing demand.

Let us as have a look at a few software stocks that are set to release their results on Oct 26.

VMware, Inc. is a well-known player in the virtualization and cloud computing market.The company’s innovative product pipeline, strategic partnerships, continuous contract wins and robust international sales are expected to drive overall results. This will be its first quarterly results after its parent-company EMC Corporation was acquired by Dell Inc. for $67 billion in September. The Zacks Rank #3 (Hold) company has an Earnings ESP of 0.00% as the Most Accurate Estimate and the Zacks Consensus Estimate are both pegged at 69 cents.  (Read more: VMware to Report Q3 Earnings: What's in the Cards?)

VMWARE INC-A Price and EPS Surprise

VMWARE INC-A Price and EPS Surprise | VMWARE INC-A Quote

F5 Networks Inc. (FFIV - Free Report) is a leading provider of integrated Internet traffic and content management solutions that are aimed to enhance the performance of Internet-based servers and applications. F5 Networks carries a Zacks Rank #3 and has an Earnings ESP of 0.00%. The Zacks Consensus Estimate for the to-be-reported quarter stands at $1.54. The company has surpassed the Zacks Consensus Estimate twice in the trailing four quarters and met the same in one, leading to a positive average earnings surprise of 0.94%. (Read more: F5 Networks to Report Q4 Earnings: Will it Surprise?)

F5 NETWORKS INC Price and EPS Surprise

F5 NETWORKS INC Price and EPS Surprise | F5 NETWORKS INC Quote

Vonage Holdings Corporation offers communications services, which connect individuals across the world using cloud-based devices. Last quarter, the company posted a positive earnings surprise of 14.29%. It has an average four-quarter positive earnings surprise of 25.24%. The Earnings ESP for the to-be-reported quarter is 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 5 cents The company has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here

VONAGE HOLDINGS Price and EPS Surprise

VONAGE HOLDINGS Price and EPS Surprise | VONAGE HOLDINGS Quote

Tyler Technologies, Inc. (TYL - Free Report) is a prominent player in the information management solutions market. The company caters to the requirements of the public sector with its range of software and services. It posted a positive earnings surprise of 7.25% last quarter. Notably, the company outperformed the Zacks Consensus Estimate thrice in the last four quarters, with an average positive surprise of 1.20%. For the third quarter, Tyler Technologies has an Earnings ESP of 0.00% as the Most Accurate estimate and the Zacks Consensus Estimate are both pegged at 78 cents. The company has a Zacks Rank #3, which increases the predictive power of ESP. However, a 0.00% ESP makes surprise prediction difficult. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.

TYLER TECH INC Price and EPS Surprise

TYLER TECH INC Price and EPS Surprise | TYLER TECH INC Quote

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