We are nearing the end of the Q2 earnings season with results mostly from retail companies awaited. As of Aug 5, we have results from 433 S&P 500 companies (or 87.7% of the index’s total market capitalization). The numbers are bleak with total earnings down 4.1% from the same period last year on 0.9% lower revenues.
It is now clear that Q2 is headed to be the fifth consecutive quarter of earnings decline. Notably the rate of decline has slowed down slightly from the previous quarter.
The technology sector has performed better-than-expected with giants like Facebook (NASDAQ:FB) and Alphabet (NASDAQ:GOOGL) beating expectations and registering strong growth on a year-over-year basis. We have earnings from over 88.1% of the sector’s total market cap in the index. Total earnings of these tech companies are down 0.8% from the same period last year in spite of 2.4% higher revenues.
Overall, tech sector earnings are expected to be up 0.2% on 2.7% higher revenues, compared with the sector’s 4.5% earnings decline irrespective of 0.4% higher revenues in the last reported earnings cycle.
On Aug 9, we will have results from three energy technology companies namely Babcock & Wilcox Enterprises, Inc. (NYSE:BW) , Vishay Precision Group, Inc. (NYSE:VPG) and American Superconductor Corporation (NASDAQ:AMSC) .
Headquartered in Charlotte, N.C, Babcock & Wilcox Enterprises provides energy technology and services primarily for the nuclear, fossil and renewable power markets as well as a premier advanced technology and mission critical defense contractor.
Babcock & Wilcox has an Earnings ESP of 0.00%. The Zacks Consensus Estimate for second quarter 2016 stands at loss of 9 cents. Also, it has a Zacks Rank #5 (Strong Sell). We caution against stocks with Zacks Rank #4 and 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions. Last quarter, the company posted a positive earnings surprise of 8.00%. Babcock & Wilcox has posted an average negative earnings surprise of 1.45% in the trailing four quarters.
Malvern, PA-based, Vishay Precision Group, Inc. is a designer, manufacturer and marketer of resistive foil technology products such as resistive sensors, weighing modules, and control systems for a wide variety of applications.
Vishay Precision carries a Zacks Rank #3 (Hold) and has an Earnings ESP of 0.00%.The Zacks Consensus Estimate for the second quarter of fiscal 2016 stands at 18 cents. Last quarter, the company posted a negative earnings surprise of 23.53%. Vishay Precision has surpassed the Zacks Consensus Estimate in the four preceding quarters with an average positive earnings surprise of 24.48%.
American Superconductor Corporation is a leading energy technology company. The company develops and sells a wide range of products and solutions based on power electronic systems and high temperature superconductor wires that dramatically improve the efficiency, reliability and quality of electricity during its generation, transmission, distribution and use.
American Superconductor carries a Zacks Rank #3 and has an Earnings ESP of 0.00%.The Zacks Consensus Estimate for first quarter fiscal 2016 stands at a loss of 94 cents. Last quarter, the company posted a positive earnings surprise of 43.33%. American Superconductor has surpassed the Zacks Consensus Estimate in the four preceding quarters with an average positive earnings surprise of 46.09%.
AMER SUPERCON (AMSC): Free Stock Analysis Report
VISHAY PRECISN (VPG): Free Stock Analysis Report
FACEBOOK INC-A (FB): Free Stock Analysis Report
ALPHABET INC-A (GOOGL): Free Stock Analysis Report
BABCOCK&WILCOX (BW): Free Stock Analysis Report
Original post
Zacks Investment Research