We are in the thick of the second-quarter earnings season, with as many as 1000 companies, including 116 S&P 500 members, scheduled to post their financial numbers this week. By the end of next week, we will have seen Q2 results from more than 87% of the index members.
Results so far have shown a modest improvement from the extremely weak levels over the last couple of quarters. However, growth is still non-existent, with Q2 likely to be the fifth quarter in a row of earnings decline for the S&P 500 index.
Coming to the technology sector, we now have results from 84.6% of the sector’s total market cap in the index. The results here so far have been notably better than expected. Total earnings in this sector are down 0.9% from the same period last year in spite of 2.1% higher revenues, with 83.3% of the companies beating EPS estimates and 77.8% surpassing revenue expectations. (Read more: Q2 Earnings Trends Already Established)
We believe software will remain attractive because it is hard to commoditize and easy to patent. Moreover, it serves as the foundation for the ongoing revolution in computing, security, networking and e-commerce among other things, keeping investors’ interest in the sector alive.
Among the companies slated to report their quarterly results this week, let’s see what’s in store for these four IT stocks - CDK Global, Inc. , CDW Corporation (CDW - Free Report) , Inovalon Holdings, Inc. (INOV - Free Report) and Sysorex Global . Each is scheduled to report on Wednesday, Aug 3.
CDK Global is set to report its fourth-quarter fiscal 2016 results. The company provides integrated information technology and digital marketing solutions to the automotive retail industry. For the quarter, this Zacks Rank #1 (Strong Buy) stock has an Earnings ESP of +4.26%.
The Zacks Consensus Estimate for the quarter is pegged at 47 cents. Last quarter, the company posted a positive earnings surprise of 2.44%. Notably, CDK Global has outperformed the Zacks Consensus Estimate in three out of the trailing four quarters, with an average positive earnings surprise of 7.42%.
CDW Corporation is set to report second-quarter 2016 results. The company offers information technology products and services to business, government, education and healthcare customers primarily in the United States and Canada. For the second quarter, this Zacks Rank #3 company has an Earnings ESP of 0.00%.
The Zacks Consensus Estimate for this quarter is pegged at 81 cents. Last quarter, the company’s earnings matched the Zacks Consensus Estimate. Notably, CDW Corporation has outperformed the Zacks Consensus Estimate twice in the trailing four quarters and missed the same on two occasions, resulting in an average negative earnings surprise of 0.48%.
Inovalon Holdings is set to report second-quarter 2016 results. It is a technology company that provides cloud-based data analytics and data-driven intervention platforms for the healthcare sector. For the quarter, this Zacks Rank #3 company has an Earnings ESP of 0.00%.
The Zacks Consensus Estimate for the quarter is pegged at 11 cents. Last quarter, the company posted a negative earnings surprise of 42.86%. Notably, Inovalon Holdings has underperformed the Zacks Consensus Estimate in each of the four preceding quarters with an average negative surprise of 16.81%.
Sysorex Global will report second-quarter 2016 results. The company engages in providing e-business, e-government, consulting services, global services, and strategic outsourcing. Its services span a wide range of needs including data center and managed services, homeland security, enterprise solutions, supply chain management, enterprise application integration, network/cyber security, outsourcing, command control, IT training and repair services. For this quarter, this company has an Earnings ESP of 0.00%.
The Zacks Consensus Estimate for the quarter is pegged at a loss of 9 cents. Last quarter, the company posted a negative earnings surprise of 30.00%. Notably, Sysorex Global has underperformed the Zacks Consensus Estimate in two out of the four preceding quarters with an average negative surprise of 1.16%.
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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 >>
We are in the thick of the second-quarter earnings season, with as many as 1000 companies, including 116 S&P 500 members, scheduled to post their financial numbers this week. By the end of next week, we will have seen Q2 results from more than 87% of the index members.
Results so far have shown a modest improvement from the extremely weak levels over the last couple of quarters. However, growth is still non-existent, with Q2 likely to be the fifth quarter in a row of earnings decline for the S&P 500 index.
Coming to the technology sector, we now have results from 84.6% of the sector’s total market cap in the index. The results here so far have been notably better than expected. Total earnings in this sector are down 0.9% from the same period last year in spite of 2.1% higher revenues, with 83.3% of the companies beating EPS estimates and 77.8% surpassing revenue expectations. (Read more: Q2 Earnings Trends Already Established)
We believe software will remain attractive because it is hard to commoditize and easy to patent. Moreover, it serves as the foundation for the ongoing revolution in computing, security, networking and e-commerce among other things, keeping investors’ interest in the sector alive.
Among the companies slated to report their quarterly results this week, let’s see what’s in store for these four IT stocks - CDK Global, Inc. , CDW Corporation (CDW - Free Report) , Inovalon Holdings, Inc. (INOV - Free Report) and Sysorex Global . Each is scheduled to report on Wednesday, Aug 3.
CDK Global is set to report its fourth-quarter fiscal 2016 results. The company provides integrated information technology and digital marketing solutions to the automotive retail industry. For the quarter, this Zacks Rank #1 (Strong Buy) stock has an Earnings ESP of +4.26%.
The Zacks Consensus Estimate for the quarter is pegged at 47 cents. Last quarter, the company posted a positive earnings surprise of 2.44%. Notably, CDK Global has outperformed the Zacks Consensus Estimate in three out of the trailing four quarters, with an average positive earnings surprise of 7.42%.
CDW Corporation is set to report second-quarter 2016 results. The company offers information technology products and services to business, government, education and healthcare customers primarily in the United States and Canada. For the second quarter, this Zacks Rank #3 company has an Earnings ESP of 0.00%.
The Zacks Consensus Estimate for this quarter is pegged at 81 cents. Last quarter, the company’s earnings matched the Zacks Consensus Estimate. Notably, CDW Corporation has outperformed the Zacks Consensus Estimate twice in the trailing four quarters and missed the same on two occasions, resulting in an average negative earnings surprise of 0.48%.
Inovalon Holdings is set to report second-quarter 2016 results. It is a technology company that provides cloud-based data analytics and data-driven intervention platforms for the healthcare sector. For the quarter, this Zacks Rank #3 company has an Earnings ESP of 0.00%.
The Zacks Consensus Estimate for the quarter is pegged at 11 cents. Last quarter, the company posted a negative earnings surprise of 42.86%. Notably, Inovalon Holdings has underperformed the Zacks Consensus Estimate in each of the four preceding quarters with an average negative surprise of 16.81%.
Sysorex Global will report second-quarter 2016 results. The company engages in providing e-business, e-government, consulting services, global services, and strategic outsourcing. Its services span a wide range of needs including data center and managed services, homeland security, enterprise solutions, supply chain management, enterprise application integration, network/cyber security, outsourcing, command control, IT training and repair services. For this quarter, this company has an Earnings ESP of 0.00%.
The Zacks Consensus Estimate for the quarter is pegged at a loss of 9 cents. Last quarter, the company posted a negative earnings surprise of 30.00%. Notably, Sysorex Global has underperformed the Zacks Consensus Estimate in two out of the four preceding quarters with an average negative surprise of 1.16%.
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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