The initial wave of tech companies reporting earnings was not as bad as previously thought, which gives at least somewhat of an optimistic tone for the coming week. In short, some reactions could be that things do not look as bad as was first thought. As a result, this earnings season is likely to be all about guidance, as far as the big tech shops are concerned. Note that some of these companies included are consumer electronics companies and not purely technology companies.
24/7 Wall St. has put together a preview of some of the larger companies in the tech sector reporting their quarterly results at the end of April. We have reviewed the consensus earnings estimates from Thomson Reuters and the stock price and trading history, as well as added some additional color on each.
We have already featured a preview of Apple Inc. (NASDAQ: AAPL) in our Dow stocks preview. Others scheduled to report this week include Corning Inc. (NYSE: GLW), GoPro Inc. (NASDAQ: GRPO), Twitter Inc. (NYSE: TWTR), Baidu Inc. (NASDAQ: BIDU), Garmin Ltd. (NASDAQ: GRMN), Level 3 Communications Inc. (NYSE: LVLT) and FireEye Inc. (NASDAQ: FEYE).
Corning
Corning will release its most recent quarterly results on Monday. The consensus estimates are $0.34 in earnings per share (EPS) on $2.48 billion in revenue. Corning was just recently named the Energy Star Partner of the Year. This is the EPA’s most prestigious award and recognizes organizations that have made significant contributions in energy management and raised awareness about energy efficiency. Ultimately, responsible energy management helps the company maintain the trust of its environmentally minded stakeholders, control costs and compete more effectively in a global economy.
Corning shares closed trading Friday at $22.52. The consensus analyst price target is $24.06, and the stock has a 52-week trading range of $17.03 to $25.16.
GoPro
When GoPro reports its first-quarter results on Monday, the consensus estimates call for $0.18 in EPS and $339.64 million in revenue. GoPro is considered to be the king of wearable cameras for sports enthusiasts. There may be few barriers to entry for current and future competitors, and it may have cheaper alternatives on the market already. Still, Piper Jaffray raised the GoPro rating to Overweight from Neutral. The driving force behind the GoPro upgrade is a rapid adoption of the brand by enthusiasts, where adventure junkies are becoming daily users now. Another boost in GoPro is underlying pricing gains and a stronger desire from young users to receive GoPro. All this is expected to bring higher use inside the GoPro ecosystem, now that it has media efforts at least somewhat underway.
GoPro shares ended trading at $44.73 on Friday. The consensus price target is $63.23, and the stock has a 52-week trading range of $28.65 to $98.47.
This social media giant is scheduled to report its first-quarter earnings on Monday. The consensus estimates call for EPS of $0.04 and $456.52 million in revenue. Twitter has transformed from the stock that everybody hated to the one that everyone is starting to love. High multiple valuations, issues with the current CEO’s performance and overall terrible negative market sentiment trampled the stock and actually made it a favorite target of short sellers, after fading quickly after a very quick one month post-IPO spike. Although, shareholders got the last laugh when a very strong fourth-quarter earnings report caught many of the short sellers by surprise in January and the stock took off. In fact, Twitter has retraced almost the entire sell-off and is back near highs printed last October.
Twitter shares ended the week at $50.82. The consensus price target is $54.28. The 52-week trading range is $29.51 to $55.99.
Baidu
Baidu is set to post its first-quarter results Wednesday. Consensus estimates call for EPS of $6.44 and revenue of $12.90 billion. Baidu has China locked up, with its Internet population of over 600 million. Admittedly, even a giant like Google probably will never dominate search in the People’s Republic.
Baidu shares were trading at $216.90 as the week came to a close, in a 52-week trading range of $148.16 to $251.99.
Garmin
This portable device maker is scheduled to report its first-quarter results on Wednesday. The consensus estimates call for $0.57 in EPS and $606.26 million in revenue. Garmin is releasing a product that it hopes will put it back on the map. It is no secret that Garmin shareholders have been unimpressed — after all the shares are close to a 52-week low and the market is close to the all-time high. Now the company is looking to dogs for the next revenue boost.
Garmin shares closed trading at $46.19 on Friday. The consensus price target is $53.73. The stock has a 52-week trading range of $44.57 to $62.05.
Level 3 Communications
Set to release its most recent quarterly results Wednesday, Level 3 Communications has consensus estimates of EPS at $0.33 on $2.06 billion in revenue. The company has a comprehensive portfolio of secure, managed solutions includes fiber and infrastructure solutions, IP-based voice and data communications, wide-area Ethernet services, video and content distribution and data center and cloud-based solutions. While Cowen analysts expect revenue to be slightly below the Wall Street consensus estimates of $2.1 billion due to currency headwinds, they also think that previous 2015 EBITDA guidance was conservative, and the actual first-quarter earnings print will show investors that a 2015 guidance beat is already in the cards.
Shares were trading at $54.67 as Friday’s session came to a close. The consensus price target is $57.75, and the stock has a 52-week trading range of $36.00 to $55.95.
FireEye
FireEye will post its quarterly results Thursday. Consensus estimates call for EPS of -$0.51 and revenue of $120.56 million. The company continues to grow, and most Wall Street analysts think it may have resolved its channel conflict with Mandiant, yet its overall performance was somewhat mixed in recent value added reseller survey results. The company did garner 30% of the advanced persistent threat category, and other Wall Street analysts are very bullish on the prospects. Earlier this year FireEye announced the new release of FireEye Email Threat Prevention Cloud that adds the traditional email security features of anti-spam and antivirus protection to its advanced threat detection capabilities.
FireEye shares ended trading at $44.03 on Friday, in a 52-week trading range of $24.81 to $46.44. The consensus price target is only $43.90.
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