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Software Stocks' Q3 Earnings on Nov 1: ULTI, CALD & More
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After encountering the rough tides arising from the sluggishness in emerging markets such as China and Brazil, and fears of economic/political challenges in Europe post Brexit, the U.S. economy looks quite steady now. In fact, this earnings season may finally turn to growth after declines for five straight quarters.
Per the latest Earnings Preview (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% have surpassed top-line expectations. According to the report, earnings for these companies are up 2.2% from the same period last year, while revenues have increased 1.3%.
The report projects that earnings for the total S&P 500 companies will improve 2.0% from the year-ago period, and total revenue will grow 1.4%. We will have a clearer picture by the end of this week.
Technology will be in the spotlight this week, with several major companies including Facebook Inc. and Electronic Arts Inc. (EA - Free Report) scheduled to report results this week. As per the Earnings Preview report, as of Oct 28, 72.2% of the Technology sector’s total market capitalization on the S&P 500 index had reported results.
Total earnings for these Tech companies are up 1.6% from the same period last year on 1.5% higher revenues, with 87.5% beating EPS estimates and 75% beating revenue expectations. The drag on Tech sector’s overall growth was mainly due to dismal results by Apple Inc. (AAPL - Free Report) .
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 sector players that have reported to date registered 8.8% growth in earnings on 4.5% higher revenues.
Going ahead, as per the report, Technology earnings are expected to be up 2.9% despite 1.0% lower revenues.
Let’s see what’s in store for four Software stocks, all of which are expected to release their third-quarter numbers on Nov 1.
The Ultimate Software Group Inc. is a leader in delivering Web-based payroll and employee management solutions to organizations of all sizes. This Zacks Rank #3 (Hold) 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.
The Zacks Consensus Estimate for the quarter is pegged at 20 cents. Last quarter, the company posted a negative earnings surprise of 68.18%. Notably, Ultimate Software underperformed the Zacks Consensus Estimate in three of the trailing four quarters, with an average negative earnings surprise of 62.09%.
Callidus Software Inc. provides Enterprise Incentive Management software that enables large businesses to plan, model and manage pay-for-performance compensation programs designed to align employee, sales and channel tactics with targeted business objectives. The company carries has an Earnings ESP of 0.00% which complicates surprise prediction although it carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for the quarter is pegged at a loss of 4 cents. Last quarter, the company posted a positive earnings surprise of 12.50%. Notably, Callidus outperformed the Zacks Consensus Estimate twice while missed once and matched it on the other occasion, in the trailing four quarters. The average earnings surprise is still a positive 14.79%.
Fleetmatics Group Limited provides fleet management solutions for small- and medium-sized businesses, delivered as software-as-a-service.
For the quarter, Fleetmatics has an Earnings ESP of 0.00% and a Zacks Rank #3. The Zacks Consensus Estimate for the quarter is pegged at 30 cents.
Blackbaud Inc. (BLKB - Free Report) is a leading global provider of software and related services designed specifically for non-profit organizations. For the quarter, Blackbaud has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell).
The Zacks Consensus Estimate for the quarter is pegged at 37 cents. Last quarter, the company posted a negative earnings surprise of 7.89%. Notably, Blackbaud underperformed the Zacks Consensus Estimate thrice in the trailing four quarters, with an average negative earnings surprise of 5.86%.
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Software Stocks' Q3 Earnings on Nov 1: ULTI, CALD & More
After encountering the rough tides arising from the sluggishness in emerging markets such as China and Brazil, and fears of economic/political challenges in Europe post Brexit, the U.S. economy looks quite steady now. In fact, this earnings season may finally turn to growth after declines for five straight quarters.
Per the latest Earnings Preview (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% have surpassed top-line expectations. According to the report, earnings for these companies are up 2.2% from the same period last year, while revenues have increased 1.3%.
The report projects that earnings for the total S&P 500 companies will improve 2.0% from the year-ago period, and total revenue will grow 1.4%. We will have a clearer picture by the end of this week.
Technology will be in the spotlight this week, with several major companies including Facebook Inc. and Electronic Arts Inc. (EA - Free Report) scheduled to report results this week. As per the Earnings Preview report, as of Oct 28, 72.2% of the Technology sector’s total market capitalization on the S&P 500 index had reported results.
Total earnings for these Tech companies are up 1.6% from the same period last year on 1.5% higher revenues, with 87.5% beating EPS estimates and 75% beating revenue expectations. The drag on Tech sector’s overall growth was mainly due to dismal results by Apple Inc. (AAPL - Free Report) .
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 sector players that have reported to date registered 8.8% growth in earnings on 4.5% higher revenues.
Going ahead, as per the report, Technology earnings are expected to be up 2.9% despite 1.0% lower revenues.
Let’s see what’s in store for four Software stocks, all of which are expected to release their third-quarter numbers on Nov 1.
The Ultimate Software Group Inc. is a leader in delivering Web-based payroll and employee management solutions to organizations of all sizes. This Zacks Rank #3 (Hold) 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.
ULTIMATE SOFTWR Price and EPS Surprise
ULTIMATE SOFTWR Price and EPS Surprise | ULTIMATE SOFTWR Quote
The Zacks Consensus Estimate for the quarter is pegged at 20 cents. Last quarter, the company posted a negative earnings surprise of 68.18%. Notably, Ultimate Software underperformed the Zacks Consensus Estimate in three of the trailing four quarters, with an average negative earnings surprise of 62.09%.
Callidus Software Inc. provides Enterprise Incentive Management software that enables large businesses to plan, model and manage pay-for-performance compensation programs designed to align employee, sales and channel tactics with targeted business objectives. The company carries has an Earnings ESP of 0.00% which complicates surprise prediction although it carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
CALLIDUS SOFTWR Price and EPS Surprise
CALLIDUS SOFTWR Price and EPS Surprise | CALLIDUS SOFTWR Quote
The Zacks Consensus Estimate for the quarter is pegged at a loss of 4 cents. Last quarter, the company posted a positive earnings surprise of 12.50%. Notably, Callidus outperformed the Zacks Consensus Estimate twice while missed once and matched it on the other occasion, in the trailing four quarters. The average earnings surprise is still a positive 14.79%.
Fleetmatics Group Limited provides fleet management solutions for small- and medium-sized businesses, delivered as software-as-a-service.
FLEETMATICS GRP Price and EPS Surprise
FLEETMATICS GRP Price and EPS Surprise | FLEETMATICS GRP Quote
For the quarter, Fleetmatics has an Earnings ESP of 0.00% and a Zacks Rank #3. The Zacks Consensus Estimate for the quarter is pegged at 30 cents.
Blackbaud Inc. (BLKB - Free Report) is a leading global provider of software and related services designed specifically for non-profit organizations. For the quarter, Blackbaud has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell).
BLACKBAUD INC Price and EPS Surprise
BLACKBAUD INC Price and EPS Surprise | BLACKBAUD INC Quote
The Zacks Consensus Estimate for the quarter is pegged at 37 cents. Last quarter, the company posted a negative earnings surprise of 7.89%. Notably, Blackbaud underperformed the Zacks Consensus Estimate thrice in the trailing four quarters, with an average negative earnings surprise of 5.86%.
Looking for Ideas with Even Greater Upside?
Today's investment ideas are short-term, directly based on our proven 1 to 3 month indicator. In addition, I invite you to consider our long-term opportunities. These rare trades look to start fast with strong Zacks Ranks, but carry through with double and triple-digit profit potential. Starting now, you can look inside our home run, value, and stocks under $10 portfolios, plus more. Click here for a peek at this private information >>