The third-quarter earnings season is in its last leg with 455 S&P 500 members or 91% of the index’s total membership having already reported their quarterly results as of Nov 11, according to the latest Zacks Earnings Preview report.
Per the report, approximately 72.7% of the companies posted positive earnings surprises, while 55.4% beat top-line expectations. Earnings of these companies grew 3.9% from the same period last year, while revenues increased 2.7%.
The trend this earnings season indicates that we may finally see a positive earnings picture after five straight quarters of decline. The report projects that earnings for the S&P 500 Index will improve 3.4% from the year-ago period, while total revenue will grow 1.5%. We will have a clearer picture by the end of this week.
Talking about the technology sector, the Earnings Preview report reveals that 88.8% of the sector’s total market capitalization in the S&P 500 Index has already reported results as of Nov 11. Total earnings of these tech companies are up 6.1% from the same period last year on 3.4% higher revenues, with 84% beating earnings estimates and 76% surpassing revenue expectations.
Apple Inc.’s (AAPL - Free Report) dismal results proved to be a drag on the overall performance of the sector. The company’s third-quarter earnings were down 19% from the year-ago period due to 9% lower revenues. Excluding Apple’s lackluster quarterly performance, overall earnings for the sector is been much higher.
Per the Earnings Preview report, technology earnings are expected to be up 4.5% in spite of 1% lower revenues.
Let’s see what’s in store for three software stocks, all of which are expected to release quarterly numbers on Nov 17.
The leading provider of on-demand Customer Relationship Management software, salesforce.com Inc. (CRM - Free Report) will report third-quarter fiscal 2017 results. The stock carries a Zacks Rank #3 (Hold) and has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
The Zacks Consensus Estimate for the quarter is pegged at 3 cents. Last quarter, the company posted a positive earnings surprise of 40.00%. Notably, Salesforce missed the Zacks Consensus Estimate twice, posted in-line earnings once and surpassed expectations in another of the trailing four quarters. It has an average negative earnings surprise of 33.75%. (Read more: Salesforce to Report Q3 Earnings: What's in Store?)
The leading provider of speech and imaging solutions for businesses and consumers around the world, Nuance Communications Inc. (NUAN - Free Report) , will report fourth-quarter fiscal 2016 results. The stock 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.
The Zacks Consensus Estimate for the quarter is pegged at 25 cents. The company’s earnings met the Zacks Consensus Estimate in the last quarter. Notably, Nuance Communications has outperformed the Zacks Consensus Estimate thrice and has matched the same once in the trailing four quarters with an average positive surprise of 12.85%.
Leading online tax return filing software solution provider, Intuit Inc. (INTU - Free Report) , will report first-quarter fiscal 2017 results. The stock carries a Zacks Rank #3 and has an Earnings ESP of 0.00%.
The Zacks Consensus Estimate for the quarter is pegged at a loss of 17 cents. Last quarter, the company posted a positive earnings surprise of 43.48%. Notably, Intuit has outperformed the Zacks Consensus Estimate in all the trailing four quarters with an average positive surprise of 83.39%. (Read more: Intuit Q1 Earnings: Will it Pull Off a Surprise?)
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