Technology stocks have displayed an impressive performance in the last reported quarter.
An uptick in PC shipments, strengthening data-center market, increasing proliferation of IoT amid accelerated deployment of 5G and growing clout of cloud-based applications have been driving the sector of late.
Nevertheless, impact from the Huawei ban and slowing China market are deterrents to growth.
In this backdrop, investors are now keenly awaiting earnings releases from Adobe (ADBE - Free Report) , Oracle (ORCL - Free Report) and Broadcom (AVGO - Free Report) . These companies usually report after the busy period of the earnings season. All these stocks are scheduled to report on Mar 12.
Let’s take a look into how things have been shaping up for these prominent technology companies ahead of their earnings releases.
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. You can see the complete list of today’s Zacks #1 Rank stocks here.
Adobe’s first-quarter fiscal 2020 performance is likely to have been impacted by robust adoption of Digital Media Solutions, driven by growing demand for Adobe Experience Cloud.
Moreover, impressive growth in Creative Cloud and Document Cloud business lines is expected to get reflected in the fiscal first-quarter Digital Media ARR (or Annualized Recurring Revenues).
Adobe has an Earnings ESP of 0.00% and carries a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Notably, the Zacks Consensus Estimate for fiscal first-quarter earnings has remained unchanged at $2.23 per share in the past 30 days. (Read more: Adobe Gears Up for Q1 Earnings: What’s in the Cards?)
Oracle’s third-quarter fiscal 2020 performance is anticipated to have had benefited from solid adoption of cloud-based services and latest Autonomous Database.
Further, cloud-based Fusion ERP, NetSuite and HCM applications is likely to have contributed to fiscal third-quarter performance.
However, increasing expenses on product enhancements, by means of partnerships and acquisitions, is expected to have put pressure on margins in fiscal third quarter.
This Zacks Rank #3 stock has an Earnings ESP of 0.00%.
Notably, the Zacks Consensus Estimate for earnings has been stable in the past 30 days at 96 cents. (Read more: Factors Setting the Tone for Oracle's Q3 Earnings)
Broadcom’s first-quarter fiscal 2020 performance is expected to have benefited from expanding presence in the infrastructure software space on synergies from acquisitions of CA and Symantec’s Enterprise Security business.
However, sequential decline in global semiconductor sales in November, December and January is likely to have dented performance of Broadcom’s Semiconductor Solutions segment in the yet-to-be-reported quarter.
Broadcom has a Zacks Rank #3 and an Earnings ESP of -4.22%.
We note that the Zacks Consensus Estimate for earnings has remained stable in the past 30 days at $5.22 per share. (Read more: Factors Setting the Tone for Broadcom's Q1 Earnings)
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