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Software Stocks' Earnings this Week: CHKP, CTXS, CVLT, ULTI

Zacks Equity Research
Updated

By last Friday, 126 S&P 500 members had come up with quarterly numbers, together accounting for 32.7% of the index’s total market capitalization. Total earnings for these members were down 1.1% from the year-ago period on 2.6% lower revenues. However, an impressive 70.6% of these companies managed to beat bottom-line estimates, while 55.6% exceeded revenue expectations.

As Q2 earnings take center stage, Technology is likely to be in focus with several major Software companies scheduled to report earnings this week.

Just like other sectors, technology too will be 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 3% on 2.7% higher revenues, which would follow last quarter’s 4.5% earnings decline on 0.4% higher revenues.

In the Technology sector, 38% of the sector’s total market capitalization in the S&P 500 index had reported results by Jul 22. Total earnings for these companies were down 0.2% year over year on 6.3% higher revenues. In spite of bleak year-over-year comparisons, a whopping 75% were able to surpass earnings estimates, while 81.3% beat on revenues.

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Among the companies slated to report this week, let’s see what’s in store for these four major software stocks, all of which are scheduled to release quarterly numbers on Jul 26.

Check Point Software Technologies Ltd. CHKP, a leading provider of policy-based enterprise security and traffic management solutions, will report second-quarter 2016 results. For the quarter, Check Point has an Earnings ESP of -1.03% and a Zacks Rank #4 (Sell).

The Zacks Consensus Estimate for the quarter is pegged at 97 cents. Last quarter, the company posted a positive earnings surprise of 4.30%. Notably, Check Point Software has outperformed the Zacks Consensus Estimate in all of the trailing four quarters with an average positive earnings surprise of 5.09%. (Read more: Check Point Q2 Earnings: Will the Stock Disappoint?)

CHECK PT SOFTW Price and EPS Surprise

CHECK PT SOFTW Price and EPS Surprise | CHECK PT SOFTW Quote

Citrix Systems Inc. CTXS is set to report its second-quarter 2016 results. The company is one of the leading suppliers of application delivery and management software and services that enable the effective and efficient enterprise-wide deployment and management of applications.

The Zacks Rank #1 (Strong Buy) stock has an Earnings ESP of 0.00%. The Zacks Consensus Estimate for the quarter is pegged at 92 cents. Last quarter, the company posted a positive earnings surprise of 32.43%. Notably, Citrix has outperformed the Zacks Consensus Estimate in all of the trailing four quarters with an average positive earnings surprise of 36.60%.

CITRIX SYS INC Price and EPS Surprise

CITRIX SYS INC Price and EPS Surprise | CITRIX SYS INC Quote

CommVault Systems Inc. CVLT will report first-quarter fiscal 2017 results. The company provides Unified Data Management solutions for high-performance data protection, universal availability and simplified management of data on complex storage networks.

The Zacks Rank #2 (Buy) stock has an Earnings ESP of -20.00%. The Zacks Consensus Estimate for the quarter is pegged at loss of 5 cents. Last quarter, the company posted a positive earnings surprise of 550.00%. Notably, CommVault has outperformed the Zacks Consensus Estimate twice in the trailing four quarters and missed the same twice, bringing the positive average earnings surprise to 310.72%.

COMMVAULT SYSTM Price and EPS Surprise

COMMVAULT SYSTM Price and EPS Surprise | COMMVAULT SYSTM Quote

The Ultimate Software Group Inc. ULTI will report second-quarter 2016 results. The company is a leader in delivering Web-based payroll and employee management solutions to organizations of all sizes.

This Zacks Rank #3 (Hold) stock has an Earnings ESP of 0.00%. The Zacks Consensus Estimate for the quarter is pegged at 22 cents. Last quarter, the company posted a negative earnings surprise of 178.95%. Notably, Ultimate Software has underperformed the Zacks Consensus Estimate in three of the trailing four quarters with an average negative earnings surprise of 58.01%.

ULTIMATE SOFTWR Price and EPS Surprise

ULTIMATE SOFTWR Price and EPS Surprise | ULTIMATE SOFTWR Quote

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
CHECK PT SOFTW (CHKP): Free Stock Analysis Report
 
CITRIX SYS INC (CTXS): Free Stock Analysis Report
 
COMMVAULT SYSTM (CVLT): Free Stock Analysis Report
 
ULTIMATE SOFTWR (ULTI): Free Stock Analysis Report
 
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Zacks Investment Research