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Internet Stocks Q3 Earnings Slated on Nov 1: SQ, MTCH & More

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The technology sector is poised to grab the spotlight as we head into the busiest week of the Q3 earnings cycle. Major Internet companies are scheduled to report earnings this week.

Per the latest Earnings Preview report, as of Oct 28, out of the 291 S&P 500 companies that have come up with their quarterly numbers, approximately 73.5% have posted positive earnings surprises, while 57.4% beat top-line expectations. According to the report, earnings of these companies are up 2.2% from the same period last year, while revenues have increased 1.3%.

The trend this earnings season indicates that finally we may see a positive earnings picture after five straight quarters of decline. The report projects that earnings for the total S&P 500 companies will improve 2% from the year-ago period, while total revenue will grow 1.4%. We will have a clearer picture by the end of this week.

Talking about the technology sector, per the Earnings Preview report, as of Oct 28, 72.2% of the sector’s total market capitalization in the S&P 500 index has already reported results. Total earnings of these tech companies are up 1.6% from the same period last year on 1.5% higher revenues, with 87.5% beating earnings estimates and 75% beating revenue expectations.

Apple Inc.’s (AAPL - Free Report) dismal results proved to be a drag on the overall performance of the sector. The company’s Q3 earnings were down 19% from the same period last year on 9% lower revenues. However, according to our model, if we exclude Apple, earnings for the rest of the companies that have reported to date were up 8.8% on 4.5% higher revenues.

Going ahead, as per the Earnings Preview report, technology earnings are expected to be up 2.9% in spite of 1% lower revenues.

Let’s see what’s in store for five Internet stocks, all of which are expected to release quarterly numbers on Nov 1.

Square, Inc. (SQ - Free Report) , which offers financial services and marketing services, will report third-quarter 2016 results. This Zacks Rank #2 (Buy) stock has an Earnings ESP of 0.00%.Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.

SQUARE INC Price and EPS Surprise

SQUARE INC Price and EPS Surprise | SQUARE INC Quote

The Zacks Consensus Estimate for the quarter is pegged at a loss of 11 cents. Last quarter, the company posted a positive earnings surprise of 27.27%.

Match Group, Inc. (MTCH - Free Report) , which offers subscription-based online dating websites and applications services, will report third-quarter 2016 results. This Zacks Rank #3 (Hold) stock has an Earnings ESP of 0.00%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

MATCH GROUP INC Price and EPS Surprise

MATCH GROUP INC Price and EPS Surprise | MATCH GROUP INC Quote

The Zacks Consensus Estimate for the quarter is pegged at 16 cents. Last quarter, the company posted a positive earnings surprise of 7.69%.

Software development company, Zendesk, Inc. will report its third-quarter 2016 results. This Zacks Rank #3 stock has an Earnings ESP of 0.00%.

ZENDESK INC Price and EPS Surprise

ZENDESK INC Price and EPS Surprise | ZENDESK INC Quote

The Zacks Consensus Estimate for the quarter is pegged at a loss of 28 cents. Last quarter, the company posted a positive earnings surprise of 13.33%. Notably, Zendesk has outperformed the Zacks Consensus Estimate in all the trailing four quarters with an average positive earnings surprise of 10.85%.

j2 Global, Inc. , which provides cloud-based communications and storage messaging services, will report third-quarter 2016 results. This Zacks Rank #3 stock has an Earnings ESP of 0.00%.

J2 GLOBAL INC Price and EPS Surprise

J2 GLOBAL INC Price and EPS Surprise | J2 GLOBAL INC Quote

The Zacks Consensus Estimate for the quarter is pegged at $1.18.Last quarter, the company posted a positive earnings surprise of 7.41%. Notably, J2 Global has outperformed the Zacks Consensus Estimate twice while missing the same on the other two occasions in the trailing four quarters. It has a four-quarter average positive earnings surprise of 5.90%.

Tableau Software, Inc. , which is engaged in providing analytics and data visualization software, will report third-quarter 2016 results. This Zacks Rank #4 (Sell) stock has an Earnings ESP of 0.00%.

TABLEAU SOFTWAR Price and EPS Surprise

TABLEAU SOFTWAR Price and EPS Surprise | TABLEAU SOFTWAR Quote

The Zacks Consensus Estimate for the quarter is pegged at a loss of 35 cents. Last quarter, the company posted a negative earnings surprise of 67.57%. Notably, Tableau Software has underperformed the Zacks Consensus Estimate in the trailing four quarters with an average negative earnings surprise of 170.65%. (Read more: What's in Store for Tableau Software in Q3 Earnings?)

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