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Tech Stocks to Watch for Earnings on Feb 6: CDW, TWTR & More

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Technology stocks have displayed impressive performance so far this earnings season. Improving trend in PC shipments, strengthening data center market, increasing proliferation of IoT and growing clout of cloud-based applications are working in favor of the industry players.

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

Solid results of tech bellwethers like Apple (AAPL - Free Report) , Microsoft (MSFT - Free Report) , Intel, AMD and IBM are buoying investors’ confidence. Notably, Apple’s first-quarter fiscal 2020 results benefited from a rebound in iPhone sales and solid performance by Wearables. Meanwhile, Microsoft’s cloud business, Azure, drove its quarterly performance.

Moreover, growth in the data-centric businesses, driven by robust adoption of high-performance products that include the Xeon Scalable processors, aided Intel’s fourth-quarter 2019 performance.

Further, IBM’s fourth-quarter results reflected an improving position in the hosted cloud, security and analytics.

However, declining search advertising growth and lower-than-expected YouTube sales led to a

weaker-than-expected sales for Alphabet in the fourth quarter. Nonetheless, strength in mobile platform and robust growth in Google Cloud were an upside.

Sneak Peek into Upcoming Tech Stock Earnings Releases

Investors interested in the technology sector are eagerly awaiting the upcoming earnings releases from the S&P 500 players like CDW Corporation (CDW - Free Report) , Twitter (TWTR - Free Report) , VeriSign (VRSN - Free Report) , Fortinet (FTNT - Free Report) and DXC Technology (DXC - Free Report) , all scheduled to report on Feb 6.

CDW’s fourth-quarter 2019 results are likely to reflect growing demand for its strong product portfolio across end markets.

This Zacks Rank #3 (Hold) stock is likely to deliver a positive earnings surprise because it has an Earnings ESP of +2.24%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter

Notably, per the Zacks quantitative model, the combination of a positive Earnings ESPand a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 increases the odds of an earnings beat, which is the case here. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for earnings has increased by a penny in the past 30 days to $1.47. (Read more: CDW to Report Q4 Earnings: Is a Beat in Store for the Stock?)

CDW Corporation Price and EPS Surprise

 

CDW Corporation Price and EPS Surprise

CDW Corporation price-eps-surprise | CDW Corporation Quote

 

Twitter's fourth-quarter 2019 performance is expected to have been positively impacted by initiatives, including security measures to boost user engagement. However, the top line is likely to have been affected by glitches in its ad platform and higher-than-expected seasonality apart from stiff competition for ad-dollars.

This Zacks #3 Ranked player is unlikely to beat estimates because it has an Earnings ESP of 0.00%.

The Zacks Consensus Estimate for earnings has remained unchanged in the past 30 days at 28 cents. (Read more: Twitter to Report Q4 Earnings: What's in the Cards?)

Twitter, Inc. Price and EPS Surprise

 

Twitter, Inc. Price and EPS Surprise

Twitter, Inc. price-eps-surprise | Twitter, Inc. Quote

 

Fortinet's fourth-quarter 2019 results are likely to reflect benefits from a strong product portfolio and deal wins. However, high capital expenditures are likely to have kept margins under pressure.

Fortinet is unlikely to deliver a positive earnings surprise this season as it has an unfavorable combination of a Zacks Rank #4 and an Earnings ESP of -0.11%.

Notably, the consensus mark for fourth-quarter earnings has been steady at 70 cents per share in the past 30 days. (Read more: Fortinet to Post Q4 Earnings: What's in the Offing?)

Fortinet, Inc. Price and EPS Surprise

 

Fortinet, Inc. Price and EPS Surprise

Fortinet, Inc. price-eps-surprise | Fortinet, Inc. Quote

 

VeriSign's fourth-quarter 2019 earnings are expected to have benefited from consistent increase in the number of .com and .net domain name registrations.

However, surprise prediction is difficult for the company as it has a combination of a Zacks Rank #2 and an Earnings ESP of 0.00%.

The consensus mark for earnings has been steady at $1.34 per share in the past 30 days. (Read more: VeriSign to Report Q4 Earnings: What's in the Cards?)

VeriSign, Inc. Price and EPS Surprise

 

VeriSign, Inc. Price and EPS Surprise

VeriSign, Inc. price-eps-surprise | VeriSign, Inc. Quote

 

DXC Technology's third-quarter fiscal 2020 earnings are likely to have benefited from partnerships and strength in the Digital business. However, legacy business woes are expected to have hurt performance.

Although DXC has an Earnings ESP of +1.66%, its Zacks Rank #4 (Sell) makes surprise prediction difficult.

Notably, the Zacks Consensus Estimate for earnings has declined by a couple of cents in the past 7 days to $1.08. (Read more: DXC Technology to Post Q3 Earnings: What's in Store?)

DXC Technology Company. Price and EPS Surprise

 

DXC Technology Company. Price and EPS Surprise

DXC Technology Company. price-eps-surprise | DXC Technology Company. Quote

 

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