We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Software Stocks Q2 Earnings on Jul 25: CDNS, MSTR & More
Read MoreHide Full Article
The second quarter earnings reports are trickling in thick and fast. As of Jul 21, approximately 103 S&P 500 members have reported their quarterly numbers. Of these 68.9% companies beat on earnings while 56.3% surpassed revenue estimates.
Despite this, the overall picture remains gloomy with total earnings coming 2.1% below the prior-year quarter. However, there has been1.4% year-over-year growth in the top line.
Numbers from the technology sector have been rather disappointing. Results from nearly 30% of the sector’s total market cap on S&P 500 have been released with consolidated earnings dropping 5% year over year and sales coming 2.6% lower than the comparable period last year. However, thanks to the low market expectations, over 80% of the companies have surpassed their estimates on both the top and bottom lines.
Nonetheless, it seems that this quarter might be a tad better than the last one. As per our Earnings Trend report, we expect Q2 earnings for the tech sector to decline only 3% in contrast to the 4.5% fall in Q1.The revenue picture is also looking better with expectations of 2.7% increase in Q2 compared with only 0.4% growth in Q1.
With this bit of optimism, let’s have a look at a few software stocks reporting this Monday.
Cadence Design Systems Inc.(CDNS - Free Report) is well-known for its electronic design automation software and hardware technology. It has an Earnings ESP of 0.00% as the Most Accurate Estimate and the Zacks Consensus Estimate are both pegged at 18 cents. This Zacks Rank #3 (Hold) company has surpassed estimates in the trailing four quarters with an average beat of 30.67%.
MicroStrategy Inc. (MSTR - Free Report) develops enterprise ready analytics, security and mobile software platforms. The software company has been delivering weak results since the last quarter wherein it missed our earnings estimate by over 34%. This Zacks Rank #3 company has a Earnings ESP of -2.26%, which makes us less confident of a beat in the second quarter.
Smith Micro Software, Inc. (SMSI - Free Report) , a smaller player in the software space, offers software solutions to ease and enhance users’ mobile experience. This Zacks Rank #3 company surpassed earnings expectations in the last quarter by a whopping 50%. However, the company is yet to make profits. Also, its Earnings ESP is 0.00%, which reduces the possibility of a beat this quarter.
Xura, Inc. , a digital communications solutions provider, also carries a Zacks Rank #3. In the last quarter, the company delivered lower-than-expected loss. For this quarter, it has an Earnings ESP of 0.00%. This is because both Most Accurate Estimate and the Zacks Consensus Estimate are pegged at a loss of 33 cents.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report predicting the 7 stocks that will soar highest in the coming month.
Image: Bigstock
Software Stocks Q2 Earnings on Jul 25: CDNS, MSTR & More
The second quarter earnings reports are trickling in thick and fast. As of Jul 21, approximately 103 S&P 500 members have reported their quarterly numbers. Of these 68.9% companies beat on earnings while 56.3% surpassed revenue estimates.
Despite this, the overall picture remains gloomy with total earnings coming 2.1% below the prior-year quarter. However, there has been1.4% year-over-year growth in the top line.
Numbers from the technology sector have been rather disappointing. Results from nearly 30% of the sector’s total market cap on S&P 500 have been released with consolidated earnings dropping 5% year over year and sales coming 2.6% lower than the comparable period last year. However, thanks to the low market expectations, over 80% of the companies have surpassed their estimates on both the top and bottom lines.
Nonetheless, it seems that this quarter might be a tad better than the last one. As per our Earnings Trend report, we expect Q2 earnings for the tech sector to decline only 3% in contrast to the 4.5% fall in Q1.The revenue picture is also looking better with expectations of 2.7% increase in Q2 compared with only 0.4% growth in Q1.
With this bit of optimism, let’s have a look at a few software stocks reporting this Monday.
Cadence Design Systems Inc.(CDNS - Free Report) is well-known for its electronic design automation software and hardware technology. It has an Earnings ESP of 0.00% as the Most Accurate Estimate and the Zacks Consensus Estimate are both pegged at 18 cents. This Zacks Rank #3 (Hold) company has surpassed estimates in the trailing four quarters with an average beat of 30.67%.
CADENCE DESIGN Price and EPS Surprise
CADENCE DESIGN Price and EPS Surprise | CADENCE DESIGN Quote
MicroStrategy Inc. (MSTR - Free Report) develops enterprise ready analytics, security and mobile software platforms. The software company has been delivering weak results since the last quarter wherein it missed our earnings estimate by over 34%. This Zacks Rank #3 company has a Earnings ESP of -2.26%, which makes us less confident of a beat in the second quarter.
MICROSTRATEGY Price and EPS Surprise
MICROSTRATEGY Price and EPS Surprise | MICROSTRATEGY Quote
Smith Micro Software, Inc. (SMSI - Free Report) , a smaller player in the software space, offers software solutions to ease and enhance users’ mobile experience. This Zacks Rank #3 company surpassed earnings expectations in the last quarter by a whopping 50%. However, the company is yet to make profits. Also, its Earnings ESP is 0.00%, which reduces the possibility of a beat this quarter.
SMITH MICRO SOF Price and EPS Surprise
SMITH MICRO SOF Price and EPS Surprise | SMITH MICRO SOF Quote
Xura, Inc. , a digital communications solutions provider, also carries a Zacks Rank #3. In the last quarter, the company delivered lower-than-expected loss. For this quarter, it has an Earnings ESP of 0.00%. This is because both Most Accurate Estimate and the Zacks Consensus Estimate are pegged at a loss of 33 cents.
XURA INC Price and Consensus
XURA INC Price and Consensus | XURA INC Quote
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>