Internet Stocks Earnings Results On Aug 10: GLOB, IMPR & PCOM

The second quarter earnings season is winding down with results awaited primarily from the retail sector. 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 the second quarter 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 10, three Internet companies are slated to report their results namely— Globant S.A. (NYSE:GLOB) , Imprivata, Inc. (NYSE:IMPR) and Points International Ltd. (NASDAQ:PCOM) .

Globant S.A. is a technology services provider based in Luxembourg. The company provides engineering, design, and innovation services for clients. Globant offers content management systems; and e-commerce applications.

Globant S.A. carries a Zacks Rank #3 (Hold) and has an Earnings ESP of 0.00%.The Zacks Consensus Estimate for the second quarter of 2016 stands at 25 cents. Last quarter, the company posted a positive earnings surprise of 9.52%. Globant S.A. has surpassed the Zacks Consensus Estimate in the four preceding quarters with an average positive earnings surprise of 3.52%.

Lexington, MA, based Imprivata engages in providing authentication and access management solutions for the healthcare industry. The company principally offers Imprivata OneSign that addresses various security and productivity challenges faced by hospitals and other healthcare organizations.

Imprivata carries a Zacks Rank #3 and has an Earnings ESP of 0.00%.The Zacks Consensus Estimate for the second quarter of 2016 stands at a loss of 26 cents. Last quarter, the company posted a positive earnings surprise of 29.73%. Imprivata has surpassed the Zacks Consensus Estimate in the four preceding quarters with an average positive earnings surprise of 22.88%.

Points International is the owner and operator of Points.com, the world's leading reward program management website. Points.com is an online loyalty program management portal, where consumers can earn, buy, gift, share, swap and redeem miles and points with some of the loyalty programs and retail partners.

Points International carries a Zacks Rank #3 and has an Earnings ESP of 0.00%.The Zacks Consensus Estimate for the second quarter of fiscal 2016 stands at 3 cents. Last quarter, the company posted a negative earnings surprise of 14.29%. However, Points International has an average positive earnings surprise of 13.39% in the trailing four quarters.