blog

Latest from the Quantamize Blog

Tech Earnings Season, Positive So Far with Giants Still to Report

Jan 30, 2019

Better Data for Better Investment DecisionsBetter Data for Better Investment Decisions
Better Data for Better Investment DecisionsBetter Data for Better Investment Decisions

 

  • Technology stock earnings season is in full swing this week with 25 of the 68 companies in the S&P 500 Information Technology Index, or 37% of the index constituents, having reported CY4Q2018 financials as of this morning’s market open. The ongoing tech earnings season has featured several market-moving news thus far while other notable giants still have yet to report. So far, stock prices are reacting positively to the slightest positive datapoint reported from tech companies as investors appear to have set low expectations heading into earnings season.
     
  • On an aggregate basis, S&P 500 technology stocks have generated an average sales surprise of 0.14% while producing a much higher average EPS surprise of 1.82%. In terms of growth, however, S&P 500 tech stocks to report earnings have observed an average sales slowdown of 0.61% while generating average EPS growth of 2.97%.

S&P 500 Tech Stocks to Report Earnings 

Company Ticker Report Date Sales Reported Sales Estimate Sales Surprise EPS Reported EPS Estimate EPS Surprise
ADOBE INC ADBE  12/13/2018 (PM) $2.46 bn $2.43 bn 1.44% $1.83 $1.88 -2.81%
ORACLE CORP ORCL  12/17/2018 (PM) $9.57 bn $9.52 bn 0.50% $0.80 $0.78 2.21%
RED HAT INC RHT  12/17/2018 (PM) $0.85 bn $0.85 bn -0.71% $0.96 $0.87 9.91%
MICRON TECHNOLOGY INC MU  12/18/2018 (PM) $7.91 bn $8.01 bn -1.17% $2.97 $2.95 0.57%
PAYCHEX INC PAYX  12/19/2018 (AM) $0.86 bn $0.86 bn 0.15% $0.65 $0.63 2.66%
ACCENTURE PLC-CL A ACN  12/20/2018 (AM) $10.61 bn $10.50 bn 0.97% $1.96 $1.86 5.67%
INTL BUSINESS MACHINES CORP IBM  01/22/2019 (PM) $21.76 bn $21.73 bn 0.12% $4.87 $4.82 1.14%
AMPHENOL CORP-CL A APH  01/23/2019 (AM) $2.22 bn $2.09 bn 6.47% $1.05 $0.97 7.91%
TE CONNECTIVITY LTD TEL  01/23/2019 (AM) $3.35 bn $3.38 bn -1.06% $1.29 $1.28 0.86%
CITRIX SYSTEMS INC CTXS  01/23/2019 (PM) $0.80 bn $0.79 bn 1.34% $1.67 $1.60 4.18%
F5 NETWORKS INC FFIV  01/23/2019 (PM) $0.54 bn $0.55 bn -0.65% $2.70 $2.54 6.51%
LAM RESEARCH CORP LRCX  01/23/2019 (PM) $2.52 bn $2.50 bn 1.11% $3.87 $3.66 5.62%
TEXAS INSTRUMENTS INC TXN  01/23/2019 (PM) $3.72 bn $3.75 bn -0.99% $1.27 $1.23 3.00%
XILINX INC XLNX  01/23/2019 (PM) $0.80 bn $0.77 bn 3.84% $0.93 $0.84 10.19%
INTEL CORP INTC  01/24/2019 (PM) $18.66 bn $19.01 bn -1.88% $1.28 $1.22 4.92%
WESTERN DIGITAL CORP WDC  01/24/2019 (PM) $4.23 bn $4.25 bn -0.42% $1.45 $1.50 -3.14%
CORNING INC GLW  01/29/2019 (AM) $3.08 bn $3.01 bn 2.29% $0.59 $0.57 3.33%
XEROX CORP XRX  01/29/2019 (AM) $2.53 bn $2.56 bn -1.17% $1.14 $1.04 10.14%
APPLE INC AAPL  01/29/2019 (PM) $84.31 bn $83.97 bn 0.40% $4.18 $4.17 0.31%
ADVANCED MICRO DEVICES AMD  01/29/2019 (PM) $1.42 bn $1.44 bn -1.54% $0.08 $0.08 -2.44%
JUNIPER NETWORKS INC JNPR  01/29/2019 (PM) $1.18 bn $1.22 bn -3.59% $0.59 $0.57 3.69%
KLA-TENCOR CORP KLAC  01/29/2019 (PM) $1.12 bn $1.07 bn 4.35% $2.44 $2.20 10.81%
MAXIM INTEGRATED PRODUCTS MXIM  01/29/2019 (PM) $0.58 bn $0.59 bn -2.17% $0.60 $0.62 -3.23%
TOTAL SYSTEM SERVICES INC TSS  01/29/2019 (PM) $1.02 bn $1.03 bn -0.87% $1.08 $1.07 1.31%
AUTOMATIC DATA PROCESSING ADP  01/30/2019 (AM) $3.51 bn $3.44 bn 1.91% $1.34 $1.18 13.36%

Source: Bloomberg

  • Apple Inc. (AAPL) reported CY4Q2018 earnings that were viewed in a positive light by investors, sending the stock higher by more than 5% to an intraday high of USD$162.58. Investors were pleased with Apple’s growth in its services business, which overshadowed the company’s first holiday-quarter sales decline in nearly 20 years. Piper Jaffray analyst Michael Olson attributed the stock price’s positive reaction to results being, “better than many had feared.”
     
  • Apple is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Information Technology Global Top Stock Ideas.
     
  • The stock price of Advanced Micro Drives (AMD) soared more than 16% to an intraday high of USD$22.38 after the company announced CY4Q2018 earnings and forecasted high single-digit revenue growth in 2019 while analysts projected only 6% revenue growth. Investors viewed AMD’s earnings announcement as largely positive despite the company reporting EBIT of USD$109.0mm, missing analyst expectations of USD$120.0mm.
     
  • AMD is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology Global Top Stock Ideas.
     
  • Although it is not in the S&P 500 Index, Alibaba (BABA) was another notable global tech company to report positive earnings this morning, sending the stock price higher by more than 6% intraday. Alibaba observed y/y revenue growth of 41% in its most recent quarter to USD$17.057bn, although it missed consensus of USD$17.470bn. Alibaba’s EPS of USD$1.77 in FY3Q2019 edged past analyst expectations of USD$1.77.
     
  • Alibaba is rated “Unattractive” in our China All-Cap Global Top Stock Ideas.

S&P 500 Tech Stocks Yet To Report Earnings

Company Ticker Report Date Sales Estimate EPS Estimate
MICROSOFT CORP MSFT  01/30/2019 $32.50 bn $1.09
PAYPAL HOLDINGS INC PYPL  01/30/2019 $4.23 bn $0.67
QUALCOMM INC QCOM  01/30/2019 $4.90 bn $1.09
VISA INC-CLASS A SHARES 01/30/2019 $5.41 bn $1.25
MASTERCARD INC - A MA  01/31/2019 $3.80 bn $1.52
SYMANTEC CORP SYMC  01/31/2019 $1.18 bn $0.39
SEAGATE TECHNOLOGY STX  02/04/2019 $2.72 bn $1.28
GARTNER INC IT  02/05/2019 $1.09 bn $1.25
JACK HENRY & ASSOCIATES INC JKHY  02/05/2019 $0.38 bn $0.85
MICROCHIP TECHNOLOGY INC MCHP  02/05/2019 $1.40 bn $1.57
SKYWORKS SOLUTIONS INC SWKS  02/05/2019 $0.98 bn $1.84
COGNIZANT TECH SOLUTIONS-A CTSH  02/06/2019 $4.11 bn $1.06
FLEETCOR TECHNOLOGIES INC FLT  02/06/2019 $0.62 bn $2.71
FORTINET INC FTNT  02/06/2019 $0.50 bn $0.50
ALLIANCE DATA SYSTEMS CORP ADS  02/07/2019 $2.12 bn $6.94
BROADRIDGE FINANCIAL SOLUTIO BR  02/07/2019 $0.97 bn $0.73
DXC TECHNOLOGY CO DXC  02/07/2019 $5.16 bn $2.05
FISERV INC FISV  02/07/2019 $1.55 bn $0.86
MOTOROLA SOLUTIONS INC MSI  02/07/2019 2.2209 2.539
QORVO INC QRVO  02/07/2019 $0.82 bn $1.69
VERISIGN INC VRSN  02/07/2019 $0.31 bn $1.21
WESTERN UNION CO WU  02/07/2019 $1.44 bn $0.49
AKAMAI TECHNOLOGIES INC AKAM  02/12/2019 $0.70 bn $1.00
FIDELITY NATIONAL INFO SERV FIS  02/12/2019 $2.22 bn $1.58
IPG PHOTONICS CORP IPGP  02/12/2019 $0.31 bn $1.41
CISCO SYSTEMS INC CSCO  02/13/2019 $12.41 bn $0.72
FLIR SYSTEMS INC FLIR  02/13/2019 $0.47 bn $0.60
GLOBAL PAYMENTS INC GPN  02/13/2019 $1.03 bn $1.32
NETAPP INC NTAP  02/13/2019 $1.60 bn $1.15
APPLIED MATERIALS INC AMAT  02/14/2019 $3.71 bn $0.80
ARISTA NETWORKS INC ANET  02/14/2019 $0.59 bn $2.06
NVIDIA CORP NVDA  02/14/2019 $2.37 bn $0.91
CADENCE DESIGN SYS INC CDNS  02/19/2019 $0.55 bn $0.47
INTUIT INC INTU  02/19/2019 $1.48 bn $0.87
ANALOG DEVICES INC ADI  02/20/2019 $1.51 bn $1.28
SYNOPSYS INC SNPS  02/20/2019 $0.80 bn $0.97
HEWLETT PACKARD ENTERPRISE HPE  02/21/2019 $7.62 bn $0.35
HP INC HPQ  02/21/2019 $14.87 bn $0.52
ANSYS INC ANSS  02/27/2019 $0.36 bn $1.48
SALESFORCE.COM INC CRM  02/27/2019 $3.56 bn $0.56
KEYSIGHT TECHNOLOGIES IN KEYS  02/28/2019 $0.98 bn $0.80
AUTODESK INC ADSK  03/05/2019 $0.71 bn $0.42
BROADCOM INC AVGO  03/14/2019 $5.85 bn $5.24

Source: Bloomberg

  • Several US tech giants that may provide market-moving news are scheduled to report earnings in the next few weeks, and investors will be watching closely for signs of a slowdown in earnings growth, weakness in China, and more. 
     
  • Qualcomm Inc. (QCOM) is scheduled to report FY1Q2018 earnings today after market close. Qualcomm is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas.  
     
  • Microsoft Corp. (MSFT) is scheduled to report FY2Q2019 earnings today after market close as well. Microsoft is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Information Technology Global Top Stock Ideas.  
     
  • Facebook (FB) is scheduled to report CY4Q2018 earnings today after market close. Facebook is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Information Technology Global Top Stock Ideas.  
     
  • Finally, Amazon (AMZN) is scheduled to report CY4Q2018 earnings Thursday immediately after market close. Amazon is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Consumer Discretionary Global Top Stock Ideas.

 

We Crunch the Numbers, You Make the Trade.We Crunch the Numbers, You Make the Trade.
We Crunch the Numbers, You Make the Trade.We Crunch the Numbers, You Make the Trade.