In this article, we’ll take a look at the 10 most anticipated tech earnings to watch. If you want to see more listing earnings, go directly to 5 Most Anticipated Tech Revenues 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 revenue growth they achieved last quarter. Moreover, sales are expected to increase 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 mainly due to a macro slowdown. In addition, the strengthening of the US dollar is also expected to reduce the margins of tech companies operating in international markets.
If we talk specifically about the tech sector, investors are eagerly waiting for the earnings of Intel Corporation (NASDAQ:INTC), ServiceNow, Inc. (NYSE:NOW) and Texas Instruments Incorporated (NASDAQ:TXN).
Additionally, International Business Machines Corporation (NYSE:IBM) and Fiserv, Inc. (NASDAQ:FISV) is also among the prominent tech stocks scheduled to post earnings this month.
10. STMicroelectronics NV (NYSE:STM)
Number of Hedge Fund Holders: 18
STMicroelectronics NV (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 with earnings of 51 cents per share and revenue of $3.20 billion posted by STMicroelectronics for the same period in 2021.
The Dutch company is trying to capitalize on the increased demand for chips. STMicroelectronics NV (NYSE:STM) recently revealed its plans to build a silicon carbide wafer facility in Italy.
STMicroelectronics NV (NYSE:STM) will spend about $728 million over the next five years to complete the project. The latest investment is also expected to create around 700 jobs in the region.
9. F5, Inc. (NASDAQ:FFIV)
Number of Hedge Fund Holders: 28
Plan of F5, Inc. (NASDAQ:FFIV) 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 2021 period.
Meanwhile, Evercore ISI analyst Amit Daryanani downgraded 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 that macroeconomic headwinds are likely to affect F5, Inc.’s growth. (NASDAQ:FFIV) in 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 earnings to will grow 3.5 percent on a constant currency basis compared to last year.
Woodring cut its Q3 gross margin expectations to 54.5 percent. He also cut 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 growth and margins. Moreover, Vogt pointed to increased 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 raised 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.
Apart from 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 NV (NASDAQ:NXPI)
Number of Hedge Fund Holders: 55
NXP Semiconductors NV (NASDAQ:NXPI) is scheduled to post its third quarter results on November 1, 2022. Analysts cut earnings outlook for the semiconductor industry amid slowing demand .
The semiconductor group, which also includes NXP Semiconductors NV (NASDAQ:NXPI), is facing weakening demand due to macroeconomic hurdles. Citi analyst Christopher Danely recently cut his price target for NXP stock from $190 per share to $150 per share, citing the same reason. Danely thinks the slowdown in demand and higher inventory has created a downside for the semiconductor group.
Separately, investment management firm ClearBridge Investments also mentioned NXP Semiconductors NV (NASDAQ:NXPI) in its second quarter 2022 investor letter, saying:
“Within information technology (IT), where we maintain an underweight relative to the benchmark, we picked up earnings NXP Semiconductors (NASDAQ:NXPI), a part of the pro-cyclical reflation basket built in 2020. Despite strong current fundamentals, there is continued risk of large supply increases in the semiconductor industry as record announcements of capacity.”
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Disclosure: None. 10 Most Anticipated Tech Revenues to Watch was originally published on Insider Monkey.