In this article, we will take a look at the 10 most anticipated tech earnings to watch. If you want to see some more earnings on the list, go directly to 5 Most Anticipated Tech Earnings to Watch.
Analysts have mixed expectations for the third-quarter earnings season. On average, they expect S&P 500 stocks to post earnings growth of about 4 percent on a year-over-year basis. That’s half compared to the 8 percent earnings growth they achieved in the prior quarter. Moreover, sales are expected to increase by 8 percent in Q3, down from the 13 percent gain in the second quarter.
In the tech sector, most companies are expected to post disappointing results primarily due to a macro slowdown. In addition, the strengthening U.S. dollar is also expected to dent the margins of tech companies operating in the international markets.
If we specifically talk about the tech sector, investors are eagerly waiting for earnings of Intel Corporation (NASDAQ:INTC), ServiceNow, Inc. (NYSE:NOW) and Texas Instruments Incorporated (NASDAQ:TXN).
Moreover, International Business Machines Corporation (NYSE:IBM) and Fiserv, Inc. (NASDAQ:FISV) are also among the notable tech stocks scheduled to post earnings this month.
10. STMicroelectronics N.V. (NYSE:STM)
Number of Hedge Fund Holders: 18
STMicroelectronics N.V. (NYSE:STM) will report its financial results for the third quarter on October 27, 2022. Analysts are calling for earnings of $1.04 per share on revenue of $4.24 billion. This compares to earnings of 51 cents per share and revenue of $3.20 billion posted by STMicroelectronics for the same period of 2021.
The Dutch company is trying to capitalize on the increasing demand for chips. STMicroelectronics N.V. (NYSE:STM) recently disclosed its plan to build a silicon carbide wafer facility in Italy.
STMicroelectronics N.V. (NYSE:STM) will spend about $728 million over the next five years to complete the project. The latest investment is also expected to create about 700 jobs in the region.
9. F5, Inc. (NASDAQ:FFIV)
Number of Hedge Fund Holders: 28
F5, Inc. (NASDAQ:FFIV) plans to announce its fiscal fourth-quarter earnings on October 25, 2022. Analysts expect the internet traffic management solutions provider to earn $2.52 per share on revenue of $692.05 million. This compares to adjusted earnings of $3.01 per share on revenue of $682 million in the same period of 2021.
Meanwhile, Evercore ISI analyst Amit Daryanani lowered his ratings for F5, Inc. (NASDAQ:FFIV) ahead of its Q4 results. The analyst downgraded the Seattle-based company from “Outperform” to “In-Line” on October 11, 2022.
Daryanani believes macroeconomic headwinds would likely impact the growth of F5, Inc. (NASDAQ:FFIV) in the fiscal year 2023. He also cut his price target for the stock from $220 per share to $155 per share.
8. International Business Machines Corporation (NYSE:IBM)
Number of Hedge Fund Holders: 40
International Business Machines Corporation (NYSE:IBM) is scheduled to post its profit and sales for the third quarter on October 19, 2022. Morgan Stanley analyst Erik Woodring expects the company’s Q3 revenue to grow 3.5 percent on a constant currency basis versus last year.
Woodring cut his Q3 gross margin expectations to 54.5 percent. He also trimmed his price target for International Business Machines Corporation (NYSE:IBM) from $155 per share to $152 per share.
Last month, UBS analyst David Vogt also expressed concerns over IBM’s sales and margins growth. Moreover, Vogt pointed towards increasing FX headwinds that could negatively impact IBM’s top line.
7. Amphenol Corporation (NYSE:APH)
Number of Hedge Fund Holders: 42
Amphenol Corporation (NYSE:APH) is a leading manufacturer of interconnect systems and sensors for industries ranging from military and aerospace to industrial and automotive. The Wallingford-based company plans to report its financial results for the third quarter on October 26, 2022.
JPMorgan analyst Samik Chatterjee thinks the company’s Q3 results will be driven by demand and execution. Chatterjee recently lifted his price target for Amphenol Corporation (NYSE:APH) from $86 per share to $97 per share, citing solid near-term results from the industrial technology group.
Besides Amphenol Corporation (NYSE:APH), investors are also looking forward to the earnings reports of Intel Corporation (NASDAQ:INTC), ServiceNow, Inc. (NYSE:NOW) and Texas Instruments Incorporated (NASDAQ:TXN).
6. NXP Semiconductors N.V. (NASDAQ:NXPI)
Number of Hedge Fund Holders: 55
NXP Semiconductors N.V. (NASDAQ:NXPI) is scheduled to post its third-quarter results on November 1, 2022. Analysts have been trimming earnings outlook for the semiconductor industry amid fading demand.
The semiconductor group, which also includes NXP Semiconductors N.V. (NASDAQ:NXPI), is facing weakening demand due to macroeconomic hurdles. Citi analyst Christopher Danely recently cut his price for NXP stock from $190 per share to $150 per share, citing the same reason. Danely thinks fading demand and higher inventory have created the downside for the semiconductor group.
Separately, investment management firm ClearBridge Investments also mentioned NXP Semiconductors N.V. (NASDAQ:NXPI) in its second-quarter 2022 investor letter, stating:
“Within information technology (IT), where we maintain an underweight compared to the benchmark, we took profits in NXP Semiconductors (NASDAQ:NXPI), a part of the pro-cyclical reflation basket built up in 2020. Despite strong current fundamentals, there is an ongoing risk of major supply increases in the semiconductor industry as capacity announcements are near records.”
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Disclosure: None. 10 Most Anticipated Tech Earnings to Watch is originally published on Insider Monkey.
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