by Jon Ogg | January 26, 2010 11:41 am
Although both VMWare (VMW[1]) and Apple (AAPL[2]) have already reported earnings, there are still plenty of key technology companies on deck to report this week. Included below are Thomson Reuters’ estimates and some added commentary on the following tech stocks: YHOO, SANM, FLEX, CTXS, LSI, JAVA, CHKP, MOT, NOK, AMZN, JNPR, MSFT, SNDK.
After the close of trading today, Yahoo! (YHOO[3]) will announce earnings. The distant number-two search engine and web destination has not had the same growth of rival Google (GOOG[4]), and it has yet to realize any monetization from the signed Microsoft (MSFT[5]) search-ad pact. At $15.90, the stock’s 52-week range is $10.81 to $18.02. It won’t even be fair to address the old $30 price, so we’ll skip the pain and suffering that Jerry Yang brought on before Carol Bartz came back in to take over the company. Estimates are $0.11 EPS and $1.23 billion in ex-TAC revenues.
Sanmina-SCI (SANM[6]) is also on deck this afternoon, which is important because all of the other EMS (electronics manufacturing services) companies have seen large gains from their earnings and guidance. Ditto for Flextronics (FLEX[7]) after the close of trading on Wednesday. Sanmina is very close to 52-week highs around $12.15 today as it has recovered exponentially from a low of $0.73 last year. Estimates here are $0.13 EPS and $1.4 billion in revenues. At Flextronics, the $6.65 share price is misleading because its 52-week range is $1.81 to $7.97, and it trades 8.3 million shares on average. Estimates are $0.15 EPS and $6.3 billion in revenues.
After the close of trading on Wednesday, Citrix Systems (CTXS[8]) will report, and it will get to prove if all that unusual options trading on Monday was just over VMWare’s virtualization strength or if the trading was due to strong numbers from Citrix itself and its own Xen virtualization efforts. Citrix estimates are $0.52 EPS and $431.5 million in revenues. At $42.20 after a 2.5% gain post-VMWare, its 52-week range is $20.00 to $44.01.
LSI Logic (LSI[9]) is one of the more actively-traded stocks that many have forgotten about considering its chip and storage markets have been in the sweet spot. Estimates are $0.11 EPS and $631.5 million in revenues. At $5.80, its 52-week range is $2.39 to $6.23, and average volume is almost 7.8 million shares.
Sun Microsystems (JAVA[10]) also has its last earnings report due on Wednesday after the close. This is probably the last earnings report from Sun considering that it is approved to be acquired by Oracle (ORCL[11]). Estimates are -$0.02 EPS and $2.59 billion in revenues, but the results would likely have to be grossly off the mark for this to have any impact on it or soon-to-be parent Oracle.
Check Point Software (CHKP[12]) reports Thursday morning, and the opportunity with all of the data intrusion and worms and viruses out there on the web has to be larger than in the past for the corporate and enterprise markets Check Point sells to. At $33.10, its 52-week range is $20.00 to $34.97. Estimates are $0.57 EPS and $257.75 million in revenues.
Also on deck Thursday morning are dueling reports from two challenged phone companies: Motorola (MOT[13]) and Nokia (NOK[14]). Neither has gotten back anywhere close to the old days when the stocks were exponentially higher back before there were brands like the iPhone, Blackberry and others. At $7.20, Motorola’s 52-week trading range is $2.98 to $9.45. Estimates here are $0.08 EPS and $5.94 billion in revenues. At $12.66, Nokia’s range over the last year is $8.47 to $16.58. As that report comes from Finland first, that will have to be addressed as the report comes out rather than ahead of time.
The next big kahuna comes on Thursday after the close from Jeff Bezos over at Amazon.com (AMZN[15]). Because this stock rallied so much and because Jim Cramer gave it that huge price target north of $200, this will be key to watch. At $121.50, its 52-week trading range is $47.72 to $145.91. Estimates are $0.72 EPS and $9.0 billion in revenues.
Juniper Networks (JNPR[16]) is due on Thursday afternoon, and as usual, it seems traders will try to see if they can get a sneak-peak into Cisco Systems (CSCO[17]) earnings for next month. The problem with that notion is that Cisco has it beat on revenues by tenfold. At $25.10, Juniper’s 52-week trading range is $12.43 to $28.74. Estimates are $0.26 EPS and $884.8 million in revenues.
Microsoft (MSFT[5]) is due on Thursday afternoon, and frankly the only serious issue will be how many units of Windows 7 are being sold. Other than that, Microsoft now has too many puzzle pieces to use any single metric in its business units. Around $29.50 today, the 52-week trading range is $14.87 to $31.50. Estimates are $0.59 EPS and $17.83 billion in revenues.
The last big one comes from SanDisk (SNDK[18]), the leading independent flash memory maker that traders love to trade up and down wildly with its earnings throughout the business cycles. SanDisk shares are close to $29.00, and the 52-week trading range is $7.53 to $32.08. Estimates are $0.68 EPS and $1.16 billion in revenues. The expectations here are VERY high as the company has posted what felt like ridiculously high blow-out earnings reports in the last two quarters. Options traders appear to be braced for a move of up to 10% either way, but that stock could easily rise or fall more than that based on the last earnings reports.
These estimates are all from Thomson Reuters consensus data. The further the actual earnings reports are out, the greater the chance that estimates will change slightly before the reports. We have already seen a bias set up to the downside for companies that beat earnings slightly. It seems that it is taking blow-out numbers to create added excitement considering that many of these stocks have doubled, tripled or risen even more than that over last year’s lows.
Investors will probably have to pray for the companies which do not manage to live up to the earnings expectations.
Source URL: https://investorplace.com/2010/01/tech-earnings-tech-stocks-aapl-vmw-yhoo-sanm-flex-ctxs-lsi-java-chkp-mot-nok-amzn-jnpr-msft-sndk/
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