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Watch These 5 Technology Stocks for Q1 Earnings: Beat or Miss?

Technology stocks’ upcoming results are anticipated to reflect the benefits of the growing proliferation of generative AI technology. Rising demand for generative AI chips required in Large Language Models, which is the base of this technology, is expected to have continued benefiting the semiconductor companies in first-quarter 2024.

Increasing adoption of Machine Learning, Augmented Reality/Virtual Reality devices, quantum computing, and cloud computing is expected to have aided the performances of the technology companies.

Increasing demand for data centers, driven by the need for increasing cloud capacity to support AI-related workloads, is anticipated to have acted as a tailwind.

Additionally, technical advancements in Internet infrastructure and the accelerated deployment of 5G technology worldwide are expected to have benefited technology stocks in the to-be-reported quarter.

IoT-supported industrial automation, and the rising demand for smart electric appliances, wearables, electric vehicles and drones are expected to have acted as tailwinds for technology companies.

Rising PC shipment, and signs of improvement in memory spending, especially in NAND and DRAM, are likely to have aided.

However, a challenging geopolitical scenario due to escalating tensions between the United States and China is expected to have pushed the technology sector into a negative territory. Restrictions imposed on China tech exports have been hurting chipmakers. Further, the adverse effects of the ongoing war between Russia and Ukraine are likely to have hurt the prospects of the sector in the first quarter.

Macroeconomic headwinds, high inflation and unfavorable currency fluctuations are anticipated to have been concerning.

Sneak Peek on a Few Upcoming Releases

Let us see how the following technology stocks are poised ahead of their first-quarter 2024 results, which are slated to be reported on Apr 23.

Manhattan Associates MANH is likely to have continued gaining from strength across supply-chain execution, omnichannel and retail point of sale in the first quarter. The company is expected to have bolstered its omnichannel offerings on the back of its partnership with Shopify. Also, robust Manhattan Active Omni is expected to have driven the company’s momentum among omnichannel customers.

Growing services revenues and increasing cloud subscriptions are likely to have contributed well to top-line growth. The expanding portfolio of cloud solutions is likely to have aided the company in achieving high customer satisfaction levels and boosting win rates. Solid momentum across retail, manufacturing and wholesale markets is expected to have been another positive.

Notably, Manhattan Associates has an Earnings ESP of 0.00% and a Zacks Rank #3 (Hold) at present.

Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

For the first quarter, the Zacks Consensus Estimate for MANH’s revenues is pegged at $243.32 million, indicating a 10.1% increase from the year-ago quarter’s actual.

The consensus estimate for earnings is pegged at 87 cents per share, implying year-over-year growth of 8.7%. The estimate has been unchanged over the past 30 days.

Manhattan Associates, Inc. Price and EPS Surprise

 

Manhattan Associates, Inc. Price and EPS Surprise
Manhattan Associates, Inc. Price and EPS Surprise

Manhattan Associates, Inc. price-eps-surprise | Manhattan Associates, Inc. Quote

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MSCI’s MSCI quarterly performance is expected to have benefited from robust recurring revenues and a global client base. Increasing integration of Climate and ESG solutions in the investment process is expected to have helped in expanding clientele in the to-be-reported quarter. The company’s acquisitions of Burgiss and Trove Research are expected to have enhanced its investment solutions to cater to diverse asset classes and align with market demands. MSCI’s expanding footprint among wealth managers, thanks to its specialized analytics tool, is anticipated to have been a plus.

However, ongoing market volatility, lower spending by clients and persistent inflation are expected to have been concerning for the company in the quarter under review. (Read more: MSCI Scheduled to Report Q1 Earnings: What's in the Cards?)

Notably, MSCI has an Earnings ESP of +1.03% and a Zacks Rank #3 at present.

For the first quarter, the Zacks Consensus Estimate for MSCI’s revenues is pegged at $682.53 million, indicating 15.2% growth from the year-ago quarter’s actual.

The consensus estimate for earnings is pegged at $3.44 per share, implying year-over-year growth of 9.6%. The estimate has moved south by 1.4% over the past 30 days.

MSCI Inc Price and EPS Surprise

 

MSCI Inc Price and EPS Surprise
MSCI Inc Price and EPS Surprise

MSCI Inc price-eps-surprise | MSCI Inc Quote

AudioEye AEYE is expected to have benefited from portfolio strength. The growing uptake of its Accessibility Testing SDK, which allows developers to identify and quickly address accessibility issues at the source, is expected to have contributed well. In addition, the strengthening of the Partner and Marketplace channel is likely to have driven the company’s momentum among SMB customers. Also, a robust Enterprise channel is expected to have aided AudioEye in gaining traction among large customers and organizations in the first quarter.

Apart from this, the growing awareness of digital accessibility is expected to have aided the company in gaining momentum in digital accessibility lawsuits in the quarter under review.

Notably, AudioEye has an Earnings ESP of 0.00% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

For the first quarter, the Zacks Consensus Estimate for AEYE’s revenues is pegged at $8.04 million, indicating 3.5% growth from the year-ago quarter’s actual.

The consensus estimate for earnings is pegged at 6 cents per share, which has been unchanged over the past 30 days.

Audioeye, Inc. Price and EPS Surprise

 

Audioeye, Inc. Price and EPS Surprise
Audioeye, Inc. Price and EPS Surprise

Audioeye, Inc. price-eps-surprise | Audioeye, Inc. Quote

Harvard Bioscience HBIO is likely to have gained from its growing presence in the Americas and the EMEA regions on the back of its robust product portfolio. Strength in pre-clinical products is expected to have driven the company’s momentum in telemetry. Also, the growing demand for cellular and molecular products in electroporation, bioproduction and cell-based testing is likely to have been a positive in the first quarter. The rising deployment of the high-capacity VivaMARS Behavioral System is expected to have contributed well.

However, weakening momentum across China and the Asia Pacific, especially due to a slowdown in post-COVID government academic research funding, is expected to have been a major concern for the company.

Notably, Harvard Bioscience has an Earnings ESP of 0.00% and a Zacks Rank #3 at present.

For the first quarter, the Zacks Consensus Estimate for HBIO’s revenues is pegged at $25.78 million, indicating a decline of 14% from the year-ago quarter’s reported number.

The consensus estimate for earnings is pegged at 6 cents per share. The figure has been unchanged over the past 30 days.

Harvard Bioscience, Inc. Price and EPS Surprise

 

Harvard Bioscience, Inc. Price and EPS Surprise
Harvard Bioscience, Inc. Price and EPS Surprise

Harvard Bioscience, Inc. price-eps-surprise | Harvard Bioscience, Inc. Quote

Texas Instruments TXN is expected to have gained from increasing demand for analog and embedded technologies across the automotive and industrial markets. This is expected to have aided growth in the chip content per application in the first quarter. The growing momentum of TXN in the enterprise systems market is anticipated to have been a plus.

Expanding manufacturing capabilities are expected to have benefited the company’s quarterly performance. However, macroeconomic uncertainties and geopolitical tensions are anticipated to have weighed on TXN in the quarter under review. A weakening demand environment primarily due to inventory reductions by customers is expected to have impacted the quarterly performance. (Read more: What's in Store for Texas Instruments in Q1 Earnings?)

Notably, Texas Instruments has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell) at present.

For the first quarter, the Zacks Consensus Estimate for TXN’s revenues is pegged at $3.61 billion, indicating a decline of 17.7% from the year-ago quarter’s actual.

The consensus estimate for earnings is pegged at $1.06 per share, which indicates a year-over-year fall of 42.7%. The figure also has been unchanged over the past 30 days.

Texas Instruments Incorporated Price and EPS Surprise

 

Texas Instruments Incorporated Price and EPS Surprise
Texas Instruments Incorporated Price and EPS Surprise

Texas Instruments Incorporated price-eps-surprise | Texas Instruments Incorporated Quote

Stay on top of the upcoming earnings announcements with the Zacks Earnings Calendar.

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Texas Instruments Incorporated (TXN) : Free Stock Analysis Report

MSCI Inc (MSCI) : Free Stock Analysis Report

Manhattan Associates, Inc. (MANH) : Free Stock Analysis Report

Harvard Bioscience, Inc. (HBIO) : Free Stock Analysis Report

Audioeye, Inc. (AEYE) : Free Stock Analysis Report

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