Skip to main content

Tech sector earnings scorecard - tech still can't get no respect

Last week I posted my first tech earnings scorecard for this earnings season. Tonight's results are a continuation of the theme.

This week I added a couple of new measures. I now track whether the stock beat First Call estimates by 20% or more and whether it showed 20% or more growth in earnings year-over-year.

There have been so many stocks reporting that I have opted not to display a table of results as it would be just too long. Instead, I'll present a summary of the numbers I have assembled thus far during this earnings season. These numbers include the stocks that reported over the course of the last three weeks including tonight, Monday.
  • We have tracked 167 tech stocks so far
  • 146 stocks beat First Call estimates which amounts to 87%
  • 44 of those stocks beat earnings estimates by 20% or more
  • 100 stocks showed at least some year-over-year earnings growth whether they beat estimates or not
  • 41 have shown year-over-year growth in earnings of 20% or more
  • 98 stocks have shown year-over-year revenue growth. That amounts to about 58%
  • 35 have shown revenue growth of 20% or more
  • 88 have provided upside guidance which amounts to about 52%. 
  • 27 others provided mixed or in-line guidance.
  • Only 3 stocks offered downside guidance
Given that we are still in the early stages of recovery from the Big Recession, these results look pretty darn good. Yet tech was the worst performing sector in the last two weeks of January.

I still contend that tech deserves more respect, especially in light of the relatively good guidance being provided and the fact that topline growth is being registered in more than half of those stocks reporting. This means that for many of these companies, earnings are not merely the result of cost cutting.

Keep an eye on this sector. Investors should catch on soon and tech could resume their leadership role.
    Labels:

    Comments

    Post a Comment

    Popular posts from this blog

    Brazil - in a bubble or on a roll?

    A couple of years ago, no one recognized the real estate bubble even though it was under everyone's nose. Now, analysts and bloggers are seeing bubbles everywhere they look. One of them, they say is in Brazil whose Bovespa stock market index has doubled in the last 12 months. Does the bubble accusation hold water? I don't think so and here are 7 reasons why Brazil is by no means a bubble economy: Exports have held up over the past year thanks to demand from China for Brazil's soya exports and iron ore. This was helped by the the Brazilian government's drive to improve trade links with Asia and Africa. Export diversification, spurred by a more active trade policy and increased focus on "south-south" trade under current president Lula, helped mitigate the decline in demand from OECD (Organization for Economic Co-operation and Development) countries A "sensible" economic framework has been in place since the 1990's. This has included inflation ...
    4 comments
    Read more

    Trade Radar gets another update

    Some of our data sources changed again and it impacted our ability to load fundamental/financial data. In response, we are rolling out a new version of the software: 7.1.24 The data sourcing issues are fixed and some dead links in the Chart menu were removed. So whether you are a registered user or someone engaged in the free trial, head over to our update page and download the latest version. The update page is here:   https://tradingstockalerts.com/software/downloadpatch Contact us if you have questions or identify any new issues.
    Post a Comment
    Read more

    Time to be conservative with your 401K

    Most of the posts I and other financial bloggers write are typically focused on individual stocks or ETFs and managing active portfolios. For those folks who are more conservative investors, those whose main investment vehicle is a 401K, for example, the techniques for portfolio management might be a little different. The news of stock markets falling and pundits predicting recession is disconcerting to professional investors as well as to those of us who are watching our balances in an IRA or 401K sag. What approach should the average 401K investor take? Let's assume that the investor is contributing on a regular basis to one of these retirement accounts. There are two questions that the investor needs to ask: 1. Should I stop putting the regular contribution into stocks? My feeling is that investors making regular contributions are being handed a present by the markets. Every week the market goes down, these investors are lowering their average cost. When markets reco...
    7 comments
    Read more