We are nearing the end of the third-quarter earnings season, with 423 S&P 500 members – accounting for 84.6% of the index’s total market capitalization – having reported results as of Nov 4. (Read more: Q3 Earnings Season: An Inflection Point)
Total earnings for these index members were up 3.6% from the year-ago quarter and revenues were up 2.4% year over year. The beat ratio was 72.8% for earnings and 55.1% for revenues.
Coming to the technology sector, 73.8%companies on the S&P 500 index have reported their quarterly numbers. The sector has so far performed better than expected, with total earnings being up 5.0% on 2.5% higher revenues, with 82.2% beating earnings estimates and 75.6% beating revenue estimates.
However, the hardware industry has been a drag on the tech sector this quarter, with Apple reporting an earnings decline of 19% on 9% lower revenues. Excluding Apple, total earnings for the rest of the Tech sector companies that have reported would be up 12.3% on 5.3% higher revenues.
Among the technology firms slated to report their earnings results on Nov 8, let’s see what lies ahead for these three:
Amdocs Limited (DOX - Free Report) is a leading provider of customer care, billing and order management systems for communications and Internet services. The company will report fourth-quarter fiscal 2016 results. The stock carries a Zacks Rank #3 (Hold), which increases the predictive power of ESP. Yet, we cannot predict an earnings beat as both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 83 cents, resulting in an Earnings ESP of 0.0%. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
Notably, Amdocs Limited surpassed the Zacks Consensus Estimate in each of the trailing four quarters, with an average positive surprise of 3.10%.
Liberty TripAdvisor Holdings, Inc. (LTRPA - Free Report) is expected to report third-quarter 2016 results. The company, together with its subsidiaries, is involved in online travel research and online commerce businesses worldwide. The stock carries a Zacks Rank #3 and has an Earnings ESP of 0.00%. Therefore it is unlikely to beat earnings estimates this quarter.
Notably, Liberty TripAdvisor missed the Zacks Consensus Estimate in three of the trailing four quarters, resulting in an average negative surprise of 544.44%.
Global Eagle Entertainment Inc. (ENT - Free Report) offers content and connectivity services for the airline industry. It provides airlines with in-flight video content, e-commerce and information services. The company will report third-quarter 2016 results. The firm is also unlikely to beat earnings estimates as it has an Earnings ESP of 0.00% and a Zacks Rank #3.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Notably, Global Eagle Entertainment surpassed the Zacks Consensus Estimate twice in the preceding four quarters, matched it once and missed on the other occasion, resulting in an average negative surprise of 200.00%.
Stay tuned! Check back on our full write-up on earnings releases of these stocks.
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