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Technology Stock Q3 Earnings Due on Oct 22: TXN, SNAP & More

Zacks Equity Research

Technology stocks are anticipated to show a lackluster third-quarter 2019 performance, primarily due to softness in the semiconductor space. Semiconductors have been reporting weak sales over the past few months due to higher tariffs on electronics along with weak China market. This trend is likely to have continued in the third quarter.

Per the latest Earnings Preview, sluggish tech growth was a major drag on the aggregate Q3 earnings growth rate. The Tech sector is the biggest earnings contributor to the S&P 500 Index. Total earnings are expected to be down 4% from the same period last year.

The rapid adoption of cloud computing, AI, IoT, cloud-based gaming, wearables and drones is likely to have driven this sector’s growth. Moreover, growing preference for online gaming, music and video-streaming services is anticipated to have been a major growth driver. Further, the proliferation of IoT, which is facilitating connected devices and smart homes, was a key catalyst in the quarter.

Let’s take a look at four technology stocks that are scheduled to announce third-quarter results tomorrow.

Texas Instruments Incorporated’s TXN earnings and revenues are expected to have declined during the quarter. The Zacks Consensus Estimate for earnings is pegged at $1.41, indicating 10.8% fall from the year-ago reported figure. Also, the consensus estimate for sales of $3.81 billion suggests a 10.6% decline.

We cannot conclusively predict an earnings beat for Texas Instruments as it doesn’t have the right combination of two key ingredients — a positive Earnings ESP and Zacks Rank #3 (Hold) or higher.

It has a Zacks Rank #4 (Sell) 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.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The company’s upcoming results may have been affected by weakness in overall demand, uncertain macro environment, and increased competition in the auto and industrial space. Nevertheless, strength in several higher-margin and high-growth market areas is expected to have aided its earnings. (Read more: Product Strength to Aid Texas Instruments' Q3 Earnings)

Texas Instruments Incorporated Price and EPS Surprise

 

Texas Instruments Incorporated Price and EPS Surprise

Texas Instruments Incorporated price-eps-surprise | Texas Instruments Incorporated Quote

Snap Inc.’s (SNAP) earnings and revenues are expected to have got a boost during the quarter. The Zacks Consensus Estimate for revenues of $437.6 million implies growth of 47% from the year-ago reported number. Further, the consensus mark for loss is pegged at 5 cents, indicating a 58.33% rise from the prior-year reported figure.

We cannot conclusively predict an earnings beat for Snap as it doesn’t have the right combination of the two key ingredients.

It has an Earnings ESP of 0.00% and a Zacks Rank #2 (Buy). (Read more: Snap to Report Q3 Earnings: What's in the Cards?)

Snap Inc. Price and EPS Surprise

 

Snap Inc. Price and EPS Surprise

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

CoStar Group, Inc. (CSGP) is expected to have witnessed growth in earnings and revenues.

The Zacks Consensus Estimate for revenues of $353.2 million implies growth of 15.59% from the year-ago reported number. Further, the Zacks Consensus Estimate for earnings of $2.51 per share suggests an improvement of 16.2%.

It has a Zacks Rank #3 and Earnings ESP of 0.00%.

CoStar Group, Inc. Price and EPS Surprise

 

CoStar Group, Inc. Price and EPS Surprise

CoStar Group, Inc. price-eps-surprise | CoStar Group, Inc. Quote

Manhattan Associates, Inc.’s MANH revenues are expected to have recorded an increase, while earnings are likely to have declined.

The Zacks Consensus Estimate for revenues of $151.7 million suggests an improvement of 6.59% from the year-ago quarter. The consensus estimate for earnings of 36 cents indicates fall of 26.5% from the prior-year quarter.

It has a Zacks Rank #3 and Earnings ESP of 0.00%.

Manhattan Associates, Inc. Price and EPS Surprise

 

Manhattan Associates, Inc. Price and EPS Surprise

Manhattan Associates, Inc. price-eps-surprise | Manhattan Associates, Inc. Quote

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Snap Inc. (SNAP) : Free Stock Analysis Report
 
CoStar Group, Inc. (CSGP) : Free Stock Analysis Report
 
Manhattan Associates, Inc. (MANH) : Free Stock Analysis Report
 
Texas Instruments Incorporated (TXN) : Free Stock Analysis Report
 
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