Getting into the thick of the Q2 earnings season, we have seen releases from 208 S&P 500 members, accounting for 50.5% of the index’s total market capitalization, as of Jul 27. Growth continues to be problematic, with Q2 on track to be the fifth quarter in a row to record negative earnings for the S&P 500 index.
Just like other sectors, technology too has been impacted by global growth concerns, a strengthening dollar and market volatility. An added concern is Britain’s decision to exit the European Union. Due to these factors, total earnings in the tech sector are expected to be down 2.1% on 2.7% higher revenues, which would follow last quarter’s 4.5% earnings decline on 0.4% higher revenues.
By Wednesday, 61.4% of the Technology sector’s total market capitalization in the S&P 500 index has come up with financial numbers. Total earnings for these companies were down 8.2% year over year on 0.5% lower revenues. In spite of bleak year-over-year comparisons, a whopping 78.6% were able to surpass earnings estimates, while 71.4% beat on revenues.
Among the companies slated to report early next week, let’s see what’s in store for these five Software stocks, all of which are scheduled to release second-quarter 2016 results on Aug 1.
MeetMe Inc. MEET owns and operates a social network. It allows users to meet new people through social games and apps, monetized by both advertising and virtual currency.
For the quarter, the company has an Earnings ESP of 0.00% and a Zacks Rank #1 (Strong Buy). The Zacks Consensus Estimate for the quarter is pegged at 5 cents. Last quarter, the company posted a positive earnings surprise of 150.00%.Notably, MeetMe has outperformed the Zacks Consensus Estimate thrice in the trailing four quarters, with an average positive earnings surprise of 125.00%.
MEETME INC Price and EPS Surprise
MEETME INC Price and EPS Surprise | MEETME INC Quote
Blackbaud Inc. BLKB is one of the leading global providers of software and related services designed specifically for non-profit organizations. For the quarter, Blackbaud has an Earnings ESP of 0.00% and a Zacks Rank #3 (Hold).
The Zacks Consensus Estimate for the quarter is pegged at 38 cents. Last quarter, the company posted a negative earnings surprise of 9.09%. Notably, Blackbaud has underperformed the Zacks Consensus Estimate twice in the four trailing quarters and beat it on one occasion and met the same in the other, bringing the average negative earnings surprise to 3.05%.
BLACKBAUD INC Price and EPS Surprise
BLACKBAUD INC Price and EPS Surprise | BLACKBAUD INC Quote