I've been keeping track of some of the tech bellwethers as well as some of the smaller players.All in all, the results of this earnings season have been pretty positive.
The following table is our tech scorecard. Results include a good selection of tech stocks that have reported this month right up through Monday, Jan 25. 40 out of 47 companies on our list have beat earnings expectations thus far in this earnings season. That's 85%, which to mind is pretty good.
There has been some grumbling among investors that topline growth has been lacking. This scorecard shows that 31 out of 47 companies have shown year-over-year growth in revenues. Not spectacular but not bad; it's about two thirds of companies reporting thus far and that's a decent percentage.
In any case, here is our tech scorecard thus far. We've identified which ones beat earnings expectations and which ones had topline revenue growth.
|Name ||Symbol ||Earnings Beat? ||Topline Growth? ||Guidance |
|Infosys ||INFY ||Beat ||Yes ||Upside |
|EXFO ||EXFO ||Miss ||No ||Upside |
|Linear Tech ||LLTC ||Beat ||Yes ||Upside |
|Xyratex ||XRTX ||Miss ||No ||Upside |
|Intel ||INTC ||Beat ||Yes ||In-line |
|ADTRAN ||ADTN ||Beat ||Yes |
|Cree ||CREE ||Beat ||Yes ||Upside |
|IBM ||IBM ||Beat ||Yes ||Upside |
|Supertex ||SUPX ||Beat ||No |
|Wipro ||WIT ||Beat ||Yes |
|ASML Holding ||ASML ||Beat ||Yes |
|iGATE ||IGTE ||Miss ||Yes |
|Amdocs ||DOX ||Beat ||No ||Mixed |
|eBay ||EBAY ||Beat ||Yes ||Mixed |
|F5 Networks ||FFIV ||Beat ||Yes ||Upside |
|Logitech Intl SA ||LOGI ||Beat ||No |
|NVE Corp ||NVEC ||Beat ||Yes |
|Plexus ||PLXS ||Beat ||No ||Upside |
|Seagate Tech ||STX ||Beat ||Yes ||Upside |
|Skyworks ||SWKS ||Beat ||Yes ||Upside |
|Xilinx ||XLNX ||Beat ||Yes ||Upside |
|Amphenol ||APH ||Beat ||Yes ||Upside |
|Fairchild Semi ||FCS ||Beat ||Yes ||Upside |
|Affiliated Computer ||ACS ||Beat ||Yes |
|Xerox ||XRX ||Beat ||No ||Upside |
|California Micro ||CAMD ||Beat ||Yes |
|Advanced Micro ||AMD ||Beat ||Yes |
|Digi Intl ||DGII ||Beat ||Yes ||In-line |
|Elec For Imaging ||EFII ||Beat ||No |
|Emulex ||ELX ||Beat ||No ||Mixed |
|Google ||GOOG ||Beat ||Yes ||Upside |
|Intl Game Tech ||IGT ||Beat ||No |
|Microsemi ||MSCC ||Beat ||No ||Mixed |
|NetScout Systems ||NTCT ||Beat ||No ||In-line |
|Synaptics ||SYNA ||Beat ||No ||Mixed |
|Western Digital ||WDC ||Beat ||Yes |
|LM Ericsson ||ERIC ||Miss ||No |
|Apple ||AAPL ||Beat ||Yes ||Upside |
|Atheros Communications ||ATHR ||Beat ||Yes |
|JDA Software ||JDAS ||Miss ||Yes |
|Mindspeed ||MSPD ||Beat ||Yes ||Upside |
|PLX Tech ||PLXT ||Beat ||Yes ||Upside |
|Texas Instruments ||TXN ||Beat ||Yes ||Upside |
|VMware ||VMW ||Beat ||Yes ||Upside |
|Volterra Semi ||VLTR ||Beat ||Yes |
|Zoran ||ZRAN ||Beat ||Yes ||Upside |
Since earnings reports are backwards looking, I've included forward guidance. Out of 46 stocks in the list, there are 29 that have provided guidance that I was able to include. Out of that 29, fully 21 have provided upside guidance, and the rest have provided mixed or in-line guidance.
So with 85% of tech stocks beating earnings expectations and 66% reporting year-over-year growth in revenues the tech sector is looking pretty good from the point of view of fundamentals. Given how hard tech stocks have fallen, I'm thinking this is getting to be a pretty good entry point for those looking to invest in the tech sector (ETFs IYW, XLK and ROM are pretty good candidates). And with a significant number of stocks providing positive forward guidance, the risk at this point seems to be somewhat diminished.
The next few weeks will feature plenty more earnings reports so stay tuned for updates to the tech scorecard.
Disclosure: no positions in stocks mentioned in this post though I am currently long ROM