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Internet Stocks' Earnings Slated on Nov 7: NEWR, SNCR & DTSI

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The major part of Q3 earnings cycle is now behind us with 364 S&P 500 members or 78.2% of the index’s total membership having already reported their quarterly results, as of Nov 2, according to the latest Zacks Earnings Outlook.

Per the report, approximately 72.3% of the companies posted positive earnings surprises, while 54.7% beat top-line expectations. Earnings as well as revenues of these companies witnessed a year-over-year increase of 1.6%.

The trend this earnings season indicates that we may finally see a positive earnings picture after five straight quarters of decline. The report projects that earnings for the total S&P 500 companies will improve 2.4% from the year-ago period, while total revenue will grow 1.4%. We will have a clearer picture by the end of next week.

Talking about the technology sector, per the Earnings Outlook report, as of Nov 2, 74% of the sector’s total market capitalization in the S&P 500 index has already reported results. Total earnings of these tech companies are up 1% from the same period last year on 1.4% higher revenues, with 84.2% beating earnings estimates and 71.1% surpassing revenue expectations.

It should be noted that Apple Inc.’s (AAPL - Free Report) dismal results proved to be a drag on the overall performance of the sector. The company’s Q3 earnings were down 19% from the same period last year on 9% lower revenues. Therefore, excluding Apple, we would have seen strong revenue and earnings growth for the overall tech sector.

Let’s see what’s in store for four Internet stocks, all of which are expected to release quarterly numbers on Nov 7.

New Relic, Inc. , which is a software analytics company, will report its second-quarter fiscal 2017 results. The stock carries a Zacks Rank #3 (Hold) and has an Earnings ESP of 0.00%. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.

NEW RELIC INC Price and EPS Surprise

NEW RELIC INC Price and EPS Surprise | NEW RELIC INC Quote

The Zacks Consensus Estimate for the quarter is pegged at a loss of 31 cents. Last quarter, the company posted a positive earnings surprise of 5.56%. Notably, New Relic has outperformed the Zacks Consensus Estimate thrice while missing the same once in the trailing four quarters. It has an average positive earnings surprise of 5.12%.

Synchronoss Technologies, Inc. (SNCR - Free Report) is a premier provider of on-demand transaction management software to Tier One communications service providers. The stock, which carries a Zacks Rank #3 and has an Earnings ESP of 0.00%, will report third-quarter 2016 results. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

SYNCHRONOSS TEC Price and EPS Surprise

SYNCHRONOSS TEC Price and EPS Surprise | SYNCHRONOSS TEC Quote

The Zacks Consensus Estimate for the quarter is pegged at 56 cents. Last quarter, the company posted a positive earnings surprise of 9.76%. Notably, Synchronoss has outperformed the Zacks Consensus Estimate twice while missing the same once and matching it once in the trailing four quarters. It has an average positive earnings surprise of 3.01%.

DTS Inc. , which is a digital technology company dedicated to delivering the ultimate entertainment experience, will report third-quarter 2016 results. The stock carries a Zacks Rank #3 and has an Earnings ESP of 0.00%.

DTS INC Price and EPS Surprise

DTS INC Price and EPS Surprise | DTS INC Quote

The Zacks Consensus Estimate for the quarter is pegged at 41 cents. Last quarter, the company posted a positive earnings surprise of 58.82%. Notably, DTS has outperformed the Zacks Consensus Estimate thrice while missing the same once in the trailing four quarters. It has an average positive earnings surprise of 30.59%.

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