Technology stocks have displayed an impressive performance so far this earnings season.
A solid data-center market, the growing adoption of cloud-based applications as well as the tech-supported remote-working and online-learning wave are working in favor of the industry players.
The Tech space displayed its flexibility and earnings power through solid performances of leaders like Microsoft MSFT, Alphabet GOOGL and Intel. Both Microsoft’s and Alphabet division Google’s results reflected solid demand for cloud-computing services, while Intel’s performance showed continued PC shipment momentum.
Impressive results from social-networking companies — Facebook, Snap and Twitter — highlighted strong recovery in ad spending.
Sneak Peek into Upcoming Earnings Releases
Given this encouraging backdrop, let’s take a look at how the five tech companies — Fair Isaac FICO, Microchip Technology MCHP, Akamai Technologies AKAM, Paycom Software PAYC and AMETEK AME — are placed ahead of their earning releases on Aug 3.
Fair Isaac’s third-quarter fiscal 2021 results will likely reflect continued strength in its Scores business and credit analytics domain, which has been witnessing solid growth for the past several years. The growing clout of the company’s solutions that aids businesses to automate and enhance business workloads and make data-driven decisions amid the easing COVID-19 restrictions is likely to have aided its quarterly performance.
The stock currently carries a Zacks Rank #3 (Hold) and has an Earnings ESP of +18.71%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. 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. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Fair Isaac’s fiscal third-quarter earnings is currently pegged at $2.78 per share, having been revised upward by a penny over the 30 days. The consensus mark indicates a year-over-year increase of 7.8%.
Fair Isaac Corporation Price and EPS Surprise
Fair Isaac Corporation price-eps-surprise | Fair Isaac Corporation Quote
Microchip Technology’s first-quarter fiscal 2022 results are likely to reflect gains from demand recovery across its global business environment, particularly in the automotive, industrial and consumer end-markets, on easing of lockdowns and relaxation of shelter-in-place guidelines. It is also likely to have benefited from the dominance of its 8, 16 and 32-bit microcontrollers, as well as synergies from acquisitions, including Microsemi, Micrel and Atmel.
Nonetheless, sluggish enterprise spending and supply-chain disruptions due to the coronavirus mayhem are expected to have hurt top-line growth. (Read more: Microchip to Report Q1 Earnings: What's in the Cards?)
The stock has a favorable combination of a Zacks Rank #3 and an Earnings ESP of +0.95, which increases the chance of an earnings beat. The Zacks Consensus Estimate for Microchip’s fiscal first-quarter earnings is pegged at $1.90 per share, unchanged in the past 30 days. The figure indicates 21.8% growth from the year-ago quarter’s reported earnings.
Microchip Technology Incorporated Price and EPS Surprise
Microchip Technology Incorporated price-eps-surprise | Microchip Technology Incorporated Quote
Akamai’s second-quarter performance is likely to have benefited from the continued robust demand for its security solutions, including application-layer firewall and DDoS prevention, as well as healthy growth witnessed in the edge applications’ business. The company’s top-line performance is also anticipated to have gained from robust traffic on the company’s platform on continued demand for OTT video services and increase in gaming activity during the second quarter.
Rising expenses toward product innovation, along with higher bandwidth costs, might have exerted pressure on margin expansion during the quarter under review. (Read more: Factors to Note Ahead of Akamai's Q2 Earnings Release)
Akamai has an unfavorable combination of a Zacks Rank #3 and an Earnings ESP of 0.00% that decreases the chances of a beat. The Zacks Consensus Estimate of $1.39 per share for Akamai’s second-quarter earnings has been unrevised in the past 30 days. The figure calls for a marginal improvement from the earnings reported in the year-ago period.
Akamai Technologies, Inc. Price and EPS Surprise
Akamai Technologies, Inc. price-eps-surprise | Akamai Technologies, Inc. Quote
Paycom’s second-quarter performance is likely to have benefited from new business wins and the high-margin recurring revenue business. The firm’s employee usage strategy, sales efforts and investments are anticipated to have boosted sales growth during the period in discussion.
Nonetheless, the pandemic-triggered economic and business disruptions might have negatively impacted its quarterly performance. Notably, some of the company’s businesses are directly related to the number of headcounts at its client offices. (Read more: Paycom to Report Q2 Earnings: What's in the Offing?)
Paycom has an unfavorable combination of a Zacks Rank #3 and an Earnings ESP of 0.00% that reduces chances of a beat. The Zacks Consensus Estimate for Paycom’s second-quarter earnings is currently pegged at 83 cents per share, unchanged over the past 30 days. The consensus mark suggests a year-over-year jump of 33.9%.
Paycom Software, Inc. Price and EPS Surprise
Paycom Software, Inc. price-eps-surprise | Paycom Software, Inc. Quote
AMETEK’s second-quarter results will likely display benefits from the company’s proper execution of its four core growth strategies, operational excellence, global market expansion, investments in product development and acquisitions. Rising spending on industrial automation is anticipated to have aided the company’s top-line performance during the quarter under review.
AMETEK has an unfavorable combination of a Zacks Rank #3 and an Earnings ESP of 0.00% that reduces chances of a beat. The consensus mark of $1.11 per share for AMETEK’s quarterly earnings has remained unrevised in the past 30 days and indicates year-over-year growth of 32.1%.
AMETEK, Inc. Price and EPS Surprise
AMETEK, Inc. price-eps-surprise | AMETEK, Inc. Quote
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