As the second-quarter earnings cycle draws to a close, the picture that has emerged shows that we are still headed toward the fifth consecutive quarter of negative earnings growth. Encouragingly though, the rate of decline has slowed down modestly from the previous quarter.
For the Technology sector, total earnings are predicted to decline 0.1% on 2.7% higher revenues, marking an improvement over last quarter’s 4.5% earnings decline backed by a 0.4% improvement in revenues.
Based on the quarterly results of 84.6% of the Technology sector’s total market cap in the index that have been declared as of Jul 29, the industry has outperformed rather remarkably. Total earnings for these companies have dipped 0.9% on 2.1% higher revenues, with a whopping 83.3% beating earnings estimates and 77.8% exceeding top-line expectations.
Among the companies slated to report this week, let’s find out what’s in the cards for these five Internet stocks, all of which are scheduled to report second-quarter 2016 results on Aug 4.
LinkedIn Corporation is an online professional network that allows members to create, manage and share their professional identity online, build and engage with their professional network, access shared knowledge and insights, and find business opportunities. 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 a loss of 6 cents. Last quarter, the company posted a positive earnings surprise of 64.29%. Notably, LinkedIn has surpassed the Zacks Consensus Estimate in all of the four preceding quarters with an average positive surprise of 62.62%. (Read more: What to Expect from LinkedIn this Earnings Season?)
FireEye Inc. provides a security platform for cyber-attacks to enterprises and governments. The company offers web security, email security, file security and malware analysis. For the quarter, FireEye has an Earnings ESP of 0.00% and a Zacks Rank #3.
The Zacks Consensus Estimate for the quarter is pegged at a loss of 80 cents. Last quarter, the company posted a positive earnings surprise of 6.74%. Notably, FireEye has surpassed the Zacks Consensus Estimate in all of the four preceding quarters with an average positive surprise of 8.15%. (Read more: FireEye: What's in Store for the Stock in Q2 Earnings?)
Zillow Group Inc. (ZG - Free Report) provides real estate and home-related brands on the Web as well as on mobile. The company focuses on home lifecycle that include renting, buying, selling, financing and home improvement. For the quarter, it has an Earnings ESP of 0.00% and a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for the quarter is pegged at a loss of 19 cents. Last quarter, the company posted a negative earnings surprise of 12.50%. However, Zillow Group has surpassed the Zacks Consensus Estimate thrice in the four preceding quarters with an average positive surprise of 15.85%. (Read more: What's in Store for Zillow Group this Earnings Season?)
Shutterstock Inc. (SSTK - Free Report) is a global marketplace for digital imagery. It provides licensed photographs, vectors, illustrations and videos to businesses, marketing agencies and media organizations around the world. For the quarter, the company has an Earnings ESP of 0.00% and a Zacks Rank #2.
The Zacks Consensus Estimate for the quarter is pegged at 16 cents. Last quarter, the company posted a positive earnings surprise of 53.33%. Notably, Shutterstock has surpassed the Zacks Consensus Estimate thrice in the four preceding quarters with an average positive surprise of 18.82%.
Marketo Inc. provides digital marketing software and solutions. Its cloud-based software platform helps companies engage their customers using marketing automation tools. For the quarter, the company has an Earnings ESP of 0.00% and a Zacks Rank #3.
The Zacks Consensus Estimate for the quarter is pegged at a loss of 40 cents. Last quarter, the company posted a positive earnings surprise of 8.89%. Notably, Marketo has surpassed the Zacks Consensus Estimate in all of the four preceding quarters with an average positive surprise of 18.14%.
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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 >>
As the second-quarter earnings cycle draws to a close, the picture that has emerged shows that we are still headed toward the fifth consecutive quarter of negative earnings growth. Encouragingly though, the rate of decline has slowed down modestly from the previous quarter.
For the Technology sector, total earnings are predicted to decline 0.1% on 2.7% higher revenues, marking an improvement over last quarter’s 4.5% earnings decline backed by a 0.4% improvement in revenues.
Based on the quarterly results of 84.6% of the Technology sector’s total market cap in the index that have been declared as of Jul 29, the industry has outperformed rather remarkably. Total earnings for these companies have dipped 0.9% on 2.1% higher revenues, with a whopping 83.3% beating earnings estimates and 77.8% exceeding top-line expectations.
Among the companies slated to report this week, let’s find out what’s in the cards for these five Internet stocks, all of which are scheduled to report second-quarter 2016 results on Aug 4.
LinkedIn Corporation is an online professional network that allows members to create, manage and share their professional identity online, build and engage with their professional network, access shared knowledge and insights, and find business opportunities. 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 a loss of 6 cents. Last quarter, the company posted a positive earnings surprise of 64.29%. Notably, LinkedIn has surpassed the Zacks Consensus Estimate in all of the four preceding quarters with an average positive surprise of 62.62%. (Read more: What to Expect from LinkedIn this Earnings Season?)
FireEye Inc. provides a security platform for cyber-attacks to enterprises and governments. The company offers web security, email security, file security and malware analysis. For the quarter, FireEye has an Earnings ESP of 0.00% and a Zacks Rank #3.
The Zacks Consensus Estimate for the quarter is pegged at a loss of 80 cents. Last quarter, the company posted a positive earnings surprise of 6.74%. Notably, FireEye has surpassed the Zacks Consensus Estimate in all of the four preceding quarters with an average positive surprise of 8.15%. (Read more: FireEye: What's in Store for the Stock in Q2 Earnings?)
Zillow Group Inc. (ZG - Free Report) provides real estate and home-related brands on the Web as well as on mobile. The company focuses on home lifecycle that include renting, buying, selling, financing and home improvement. For the quarter, it has an Earnings ESP of 0.00% and a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for the quarter is pegged at a loss of 19 cents. Last quarter, the company posted a negative earnings surprise of 12.50%. However, Zillow Group has surpassed the Zacks Consensus Estimate thrice in the four preceding quarters with an average positive surprise of 15.85%. (Read more: What's in Store for Zillow Group this Earnings Season?)
Shutterstock Inc. (SSTK - Free Report) is a global marketplace for digital imagery. It provides licensed photographs, vectors, illustrations and videos to businesses, marketing agencies and media organizations around the world. For the quarter, the company has an Earnings ESP of 0.00% and a Zacks Rank #2.
The Zacks Consensus Estimate for the quarter is pegged at 16 cents. Last quarter, the company posted a positive earnings surprise of 53.33%. Notably, Shutterstock has surpassed the Zacks Consensus Estimate thrice in the four preceding quarters with an average positive surprise of 18.82%.
Marketo Inc. provides digital marketing software and solutions. Its cloud-based software platform helps companies engage their customers using marketing automation tools. For the quarter, the company has an Earnings ESP of 0.00% and a Zacks Rank #3.
The Zacks Consensus Estimate for the quarter is pegged at a loss of 40 cents. Last quarter, the company posted a positive earnings surprise of 8.89%. Notably, Marketo has surpassed the Zacks Consensus Estimate in all of the four preceding quarters with an average positive surprise of 18.14%.
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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