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Tech Stocks Earnings Lined Up for Jan 30: CA, DOX and CDK

Zacks Equity Research
Updated

The Q4 earnings cycle is in full swing, with a number of tech companies, including Apple AAPL, Alphabet GOOGL and Amazon AMZN, slated to report the quarterly numbers over the next few days.

Per the Earnings Preview dated Jan 26, Technology is one of the five sectors anticipated to report double-digit earnings growth. The other five are Oil/Energy, Basic Materials, Industrial Products and Construction. Per the report, total earnings for the tech sector are projected to be up 16.8% on 9.3% higher revenues.

We note that the technology sector has been a robust performer over the past year. The sector has been benefiting from the rising demand for cloud-based platforms, growing adoption of Artificial Intelligence (AI) solutions, Augmented/Virtual reality devices, autonomous cars, advanced driver assisted systems (ADAS) and Internet of Things (IoT) related software.

Not All Companies are Poised to Impress

Though the overall tech sector is poised to shine in the quarter to be reported, this does not ensure earnings beat for all companies in the space. It should be noted that a company’s earnings outperformance is dependent on the overall business environment as well as management’s ability to implement operating and strategic plans.

In other words, a company might perform poorly despite a favorable business environment if it fails to capitalize on the opportunities due to lack of execution.

Let’s See How CA, DOX & CDK are Placed

IT management software company, CA Inc. CA, is set to report third-quarter fiscal 2018 results tomorrow. The Zacks Consensus Estimate for the company’s revenues and earnings are pegged at $1.08 billion and 60 cents, respectively, for the quarter under review. We expect CA’s go-to-market sales strategy and acquisitions to drive the fiscal third-quarter top-line performance. The stock has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

CA Inc. Price and EPS Surprise

CA Inc. Price and EPS Surprise | CA Inc. Quote

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Another tech company Amdocs Limited DOX is also expected to report fiscal first-quarter 2018 results. It continues to expand its global client base by signing long-term contracts and collaborating with major telecommunication industry players worldwide. Moreover, last year, the company launched various products, including Optima and Amdocs Omni-Channel Experience, which are expected to boost its top line in the quarter to be reported.

The Zacks Consensus Estimate for the company’s revenues and earnings are pegged at $978.8 million and 97 cents, respectively, for the quarter. The stock carries a Zacks Rank #3.

Amdocs Limited Price and EPS Surprise

Amdocs Limited Price and EPS Surprise | Amdocs Limited Quote

CDK Global, Inc. CDK, which provides integrated IT and digital marketing solutions to the automotive retail industry, is slated to report second-quarter fiscal 2018 results on Jan 30. The Zacks Consensus Estimate for the company’s revenues and earnings are pegged at $564.9 million and 70 cents, respectively, for the quarter. Estimates, when compared with the year-ago quarter’s figures, indicate growth of 3.1% for revenues and 9.4% for earnings. The stock has a Zacks Rank #3.

CDK Global, Inc. Price and EPS Surprise

CDK Global, Inc. Price and EPS Surprise | CDK Global, Inc. Quote

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Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
 
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
 
CDK Global, Inc. (CDK) : Free Stock Analysis Report
 
Amdocs Limited (DOX) : Free Stock Analysis Report
 
Apple Inc. (AAPL) : Free Stock Analysis Report
 
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Zacks Investment Research