Earnings season unofficially kicked off this morning with the reports of big financials like JPMorgan JPM, Citigroup C, and Wells Fargo WFC coming in before the bell. Those reports were a mixed bag, with industry headwinds weighing down each stock more than anything else, and investors will now look ahead to one of first busy weeks of another key reporting period.
Earnings growth was certainly there for the bank giants—as one would expect in our rising rate environment—but today’s reports did little to inspire investors. A flattening yield curve will likely continue to subdue bank stocks for the time being.
Elsewhere, earnings growth is expected to be aplenty this season—although it will take a strong batch of marquee reports for investors to overlook global economic uncertainty in the face of ongoing trade disputes. One important battleground will be in the technology sector, which will see a number of major reports next week.
With that said, investors can always use the Zacks Earnings Calendar to plan out their schedules for earnings, dividend announcements, and other important financial releases. This handy tool is your perfect one-stop-shop to properly prepare for the market events that will have an impact on your own portfolio.
In this piece, we will be taking a look at three of the most-important reports from the tech sector to watch over the coming days. Make sure to keep an eye on these companies as they prepare to report during the week of July 16.
1. Netflix, Inc. (NFLX)
Video streaming giant Netflix is scheduled release its latest quarterly earnings report after the closing bell on July 16. Netflix has largely been able to shake off market-wide volatility in 2018, posting more than 100% year-to-date gains en route to becoming one of Wall Street’s hottest tech stocks.
However, a few bearish analyst reports in recent days have questioned whether the hot streak can continue, and the stock looks poised to carry a rare downtrend into its report date. Still, investors will be looking for impressive growth.
According to our Zacks Consensus Estimates, analysts are expecting adjusted earnings of $0.80 per share and revenue of $3.94 billion. These results would represent year-over-year growth of 433% and 41%, respectively. Investors should note, however, that this consensus EPS projection has shed a penny in the past month.
2. Microsoft Corporation (MSFT)
Tech behemoth Microsoft is scheduled to announce its latest quarterly financial results after the market closes on July 19. Cloud computing has helped Microsoft pick up steam in the past year, with shares gaining more than 42% in that time—including a decent 3.3% surge over the last month. Still, MSFT is holding just a Zacks Rank #3 (Hold) right now, and recent estimate revisions trends have been apathetic.
In fact, for the soon-to-be-reported quarter, Microsoft has actually seen a negative estimate revision since last week, bringing our consensus projection down a penny. We are now looking for Microsoft to report adjusted earnings of $1.07 per share and revenue of $29.17 billion, which would mark growth rates of 9% and 18%.
3. Skyworks Solutions, Inc. (SWKS)
Popular chipmaker Skyworks Solutions is slated to release its most recent quarterly results after the closing bell on July 19. Skyworks is an American manufacturer of RF chips, which every cellphone needs to operate. This means Skyworks deals directly with companies like Apple (AAPL) and is a great bellwether for the smartphone industry.
SWKS is currently holding a Zacks Rank #3 (Hold). Our latest Zacks Consensus Estimates are calling for adjusted earnings of $1.59 per share and revenue of $887.7 million. This would represent minimal EPS growth of 1.3% and a revenue slump of 1.5%.
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