The somewhat mixed performance of the Technology sector so far this earnings season is largely a result of the Huawei ban, higher tariffs and weak China market.
Moreover, softness in NAND pricing and sluggishness in data center demand are anticipated to get reflected in the industry players’ financial results this earnings season.
However, improving trend in PC shipments, increasing proliferation of IoT and growing clout of cloud-based applications are likely to have acted in favor.
The market’s positive reaction to reports from semiconductor players, including the likes of Qorvo, Intel, Taiwan Semiconductor and AMD, holds promise. However, Texas Instruments third-quarter revenues were affected by weakening end-market conditions, owing to macro-economic headwinds and the U.S.-China trade war.
Further, ongoing business challenges in service provider domain affected networking players, including Juniper (JNPR - Free Report) . Moreover, Arista Networks (ANET - Free Report) issued a cautious guidance.
On one hand, companies in cloud computing domain including, Amazon, Alphabet and IBM delivered mixed third-quarter results. On the other hand, Microsoft provided stellar results on expanding Azure clientele.
Talking about prominent storage players, both Western Digital and Seagate delivered better-than-expected results on rising demand witnessed by high-storage capacity enterprise drives.
Sneak Peak into Upcoming Tech Stocks Earnings Releases
Given the mixed backdrop, investors interested in the technology sector will keenly await upcoming earnings releases from notable players, including Cisco Systems, Inc. (CSCO - Free Report) , NetApp, Inc. (NTAP - Free Report) and Stratasys Ltd. (SSYS - Free Report) on Nov 13.
Notably, per the Zacks model, a combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
NetApp's second-quarter fiscal 2020 results are likely to reflect strength in hybrid multi-cloud solutions, Cloud Data Services and Private Cloud offerings.
Although NetApp carries a Zacks Rank #2, an Earnings ESP of -0.24% makes surprise prediction difficult. You can see the complete list of today’s Zacks #1 Rank stocks here.
Notably, the Zacks Consensus Estimate for fiscal second-quarter earnings has been steady at 94 cents over the past 30 days. (Read more: Factors Setting the Tone for NetApp's Q2 Earnings)
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stratasys’ third-quarter 2019 performance is anticipated to have benefited from rising demand for high-end PolyJet solutions from industries, including consumer-packaged goods and medical segments.
This Zacks Rank #3 stock has an Earnings ESP of 0.00%, which makes surprise prediction difficult.
Notably, the Zacks Consensus Estimate for third-quarter earnings has been steady at 10 cents in the past 30 days.
Cisco’s first-quarter fiscal 2020 results are likely to reflect robust adoption of its security solutions, including web security, unified threat, and network security and advanced threat offerings.
However, decline in order growth on headwinds pertaining to the U.S.-China trade war and weakness in service provider and enterprise vertical is likely to have affected the fiscal first-quarter top line.
Notably, our proven model doesn’t conclusively predict an earnings beat for Cisco for this time around. The company has an Earnings ESP of -0.62% and a Zacks Rank #4 (Sell).
Markedly, the Zacks Consensus Estimate for fiscal first-quarter earnings has been steady at 81 cents over the past 30 days. (Read more: Cisco Gears Up for Q1 Earnings: What's in the Cards?)
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>