Getting into the thick of the Q2 earnings season, we have seen releases from 317 S&P 500 members as of Jul 29, accounting for 73.5% of the index’s total market capitalization.
Although Q2 is still on track to be the fifth quarter in a row to record negative earnings growth, the rate of growth has improved modestly from last quarter’s levels. Similarly, even though estimates for the third quarter are still moving south, the magnitude of the fall has declined considerably. Nevertheless, growth remains problematic.
Based on the quarterly results of 84.6% of the Technology sector’s total market cap in the index that have been declared so far, performance of this space has been remarkably better than our expectations. Total earnings for these companies have dipped only 0.9% on 2.1% higher revenues, with a whopping 83.3% beating earnings estimates and 77.8% exceeding top-line expectations.
Total earnings in the tech sector are now expected to be down 0.1% on 2.7% higher revenues, marking an improvement over last quarter’s 4.5% earnings decline on 0.4% higher revenues.
Among the companies slated to report this week, let’s see what’s in store for these three Storage device stocks, all of which are scheduled to report earnings results on Aug 2.
Seagate Technology PLC (STX - Free Report) is set to report fourth-quarter fiscal 2016 results. The company offers a portfolio of hard disc drives (HDD), solid state drives and solid state hybrid drives. It is the second-largest manufacturer of HDDs in the U.S. with a 40% market share, just behind Western Digital Corp. (WDC - Free Report) which has a 44% share.
For the quarter, the company has an Earnings ESP of 0.00% and a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for the quarter is pegged at 60 cents. Last quarter, the company posted a negative earnings surprise of 42.11%.However, Seagate has surpassed the Zacks Consensus Estimate thrice in the last four quarters with an average positive surprise of 0.51%. (Read more: Seagate Q4 Earnings: Can the Stock Pull a Surprise?)
Enterprise video solutions provider Qumu Corporation is scheduled to report second-quarter 2016 results. The company offers a media appliance for video creation and distribution, an enterprise video platform to manage process stages in a video's lifecycle, a solution to manage and deliver live Webcasts, and a digital signage software to deliver corporate video communications and other content to displays in reception areas, lobbies, lunchrooms, waiting areas and other gathering places.
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 loss of 48 cents. Last quarter, the company posted a positive earnings surprise of 11.76%. Notably, Qumu has surpassed the Zacks Consensus Estimate in three of the last four quarters with an average positive surprise of 55.82%.
One of the leading providers of data warehousing and enterprise analytics, Teradata Corporation (TDC - Free Report) is slated to announce second-quarter 2016 results. For the quarter, the company has an Earnings ESP of 5.88% and a Zacks Rank #4 (Sell). The Zacks Consensus Estimate for the quarter is pegged at loss of 51 cents. Last quarter, the company posted a positive earnings surprise of 19.35%. However, Teradata has missed the Zacks Consensus Estimate in three of the last four quarters with an average negative surprise of 1.11%. (Read more: Teradata Q2 Earnings: What to Expect This Time?)
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Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Getting into the thick of the Q2 earnings season, we have seen releases from 317 S&P 500 members as of Jul 29, accounting for 73.5% of the index’s total market capitalization.
Although Q2 is still on track to be the fifth quarter in a row to record negative earnings growth, the rate of growth has improved modestly from last quarter’s levels. Similarly, even though estimates for the third quarter are still moving south, the magnitude of the fall has declined considerably. Nevertheless, growth remains problematic.
Based on the quarterly results of 84.6% of the Technology sector’s total market cap in the index that have been declared so far, performance of this space has been remarkably better than our expectations. Total earnings for these companies have dipped only 0.9% on 2.1% higher revenues, with a whopping 83.3% beating earnings estimates and 77.8% exceeding top-line expectations.
Total earnings in the tech sector are now expected to be down 0.1% on 2.7% higher revenues, marking an improvement over last quarter’s 4.5% earnings decline on 0.4% higher revenues.
Among the companies slated to report this week, let’s see what’s in store for these three Storage device stocks, all of which are scheduled to report earnings results on Aug 2.
Seagate Technology PLC (STX - Free Report) is set to report fourth-quarter fiscal 2016 results. The company offers a portfolio of hard disc drives (HDD), solid state drives and solid state hybrid drives. It is the second-largest manufacturer of HDDs in the U.S. with a 40% market share, just behind Western Digital Corp. (WDC - Free Report) which has a 44% share.
For the quarter, the company has an Earnings ESP of 0.00% and a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for the quarter is pegged at 60 cents. Last quarter, the company posted a negative earnings surprise of 42.11%.However, Seagate has surpassed the Zacks Consensus Estimate thrice in the last four quarters with an average positive surprise of 0.51%. (Read more: Seagate Q4 Earnings: Can the Stock Pull a Surprise?)
Enterprise video solutions provider Qumu Corporation is scheduled to report second-quarter 2016 results. The company offers a media appliance for video creation and distribution, an enterprise video platform to manage process stages in a video's lifecycle, a solution to manage and deliver live Webcasts, and a digital signage software to deliver corporate video communications and other content to displays in reception areas, lobbies, lunchrooms, waiting areas and other gathering places.
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 loss of 48 cents. Last quarter, the company posted a positive earnings surprise of 11.76%. Notably, Qumu has surpassed the Zacks Consensus Estimate in three of the last four quarters with an average positive surprise of 55.82%.
One of the leading providers of data warehousing and enterprise analytics, Teradata Corporation (TDC - Free Report) is slated to announce second-quarter 2016 results. For the quarter, the company has an Earnings ESP of 5.88% and a Zacks Rank #4 (Sell). The Zacks Consensus Estimate for the quarter is pegged at loss of 51 cents. Last quarter, the company posted a positive earnings surprise of 19.35%. However, Teradata has missed the Zacks Consensus Estimate in three of the last four quarters with an average negative surprise of 1.11%. (Read more: Teradata Q2 Earnings: What to Expect This Time?)
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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