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Tech Stocks' Earnings Roster for Feb 5: CTSH, PAYC & More

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The key fourth-quarter technology stocks' earnings releases have painted a rosy picture so far, thanks to improving PC shipments, strengthening data center market, increasing proliferation of IoT and growing clout of cloud-based applications despite softness in semiconductor space.

Per the latest Earnings Preview, Technology sector earnings are estimated to grow 2% year over year on revenue growth of 5.6%.

So far, the impressive earnings releases from Apple (AAPL - Free Report) , Microsoft (MSFT - Free Report) , Intel (INTC - Free Report) , AMD and IBM buoy optimism.

While Apple’s fiscal first quarter benefited from a rebound in iPhone sales and solid performance by Wearables, Microsoft’s cloud business, Azure, drove its quarterly performance.

Moreover, Intel’s fourth-quarter performance benefited from growth in the data-centric businesses, driven by robust adoption of high-performance products, including the Xeon Scalable processors.

Further, IBM’s fourth-quarter results reflected an improving position in the hosted cloud, security and analytics. Moreover, the company provided promising bottom-line guidance for 2020.

Sneak Peek into Upcoming Tech Stock Earnings Releases

Investors interested in the technology sector are eagerly awaiting the upcoming earnings releases from players like Cognizant (CTSH - Free Report) , Paycom Software (PAYC - Free Report) , Twilio (TWLO - Free Report) and Ceridian on Feb 5.

Cognizant’s fourth-quarter 2019 results are likely to have benefited from growing capabilities in areas like automation, digital engineering, cloud and IoT.

However, consolidation in the healthcare sector and sluggish spending by a couple of large banking clients are expected to have hurt the top line.

Moreover, this Teaneck, NJ-based company has an unfavorable combination of a Zacks Rank #3 (Hold) and 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.

Notably, per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 increases the odds of an earnings beat, which is not the case here. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Cognizant’s fourth-quarter earnings is pegged at $1.04 per share, unchanged over the past 30 days. (Read More: Cognizant to Report Q4 Earnings: What’s in Store?)
 

 

Meanwhile, Paycom’s fourth-quarter 2019 results are likely to have benefited from robust new business wins and the high-margin recurring revenue business.

However, this Oklahoma City, OK-based company is unlikely to report a beat this season as it has an unfavorable combination of a Zacks Rank #3 and an Earnings ESP of 0.00%.

Notably, the consensus mark for Paycom’s fourth-quarter earnings has been steady at 77 cents over the past 30 days. (Read more: Paycom to Post Q4 Earnings: What's in the Cards?)
 

Paycom Software, Inc. Price and EPS Surprise

Paycom Software, Inc. Price and EPS Surprise

Paycom Software, Inc. price-eps-surprise | Paycom Software, Inc. Quote

 

San Francisco CA-based Twilio’s fourth-quarter 2019 results are likely to have benefited from an increasing clientele and the Sendgrid buyout. Growing adoption of Twilio Flex is also expected to have been a tailwind.

Nevertheless, though high-margin revenues from SendGrid are a boon, Twilio’s rising investments in low-margin international regions might strain its profitability.

Additionally, Twilio has an unfavorable combination of an Earnings ESP of -100.00% and a Zacks Rank #3.

Notably, the consensus mark for Twilio’s fourth-quarter earnings has been stable over the past 30 days at 1 cent per share. (Read more: Twilio to Post Q4 Earnings: What's in the Offing?)
 

Twilio Inc. Price and EPS Surprise

Twilio Inc. Price and EPS Surprise

Twilio Inc. price-eps-surprise | Twilio Inc. Quote

 

Further, Minneapolis, MN-based Ceridian’s fourth-quarter 2019 results are expected to have benefited from improved traction of on-demand pay. Moreover, an expanding Dayforce clientele is expected to have aided recurring revenues.

However, Ceridian is unlikely to deliver a positive earnings surprise this season as it has an unfavorable combination of a Zacks Rank #4 (Sell) and an Earnings ESP of 0.00%.

Notably, the consensus mark for fourth-quarter earnings has been steady at 11 cents per share over the past 30 days.

 

Ceridian HCM Holding Inc. Price and EPS Surprise

Ceridian HCM Holding Inc. Price and EPS Surprise

Ceridian HCM Holding Inc. price-eps-surprise | Ceridian HCM Holding Inc. Quote

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