Tech Stock Earnings Lined Up For Oct 24: SOHU, MSTR, CDNS

With the Q3 earnings season underway, we can’t help but remain a bit more optimistic than the last season. This is because per our Earnings Trends report (Oct 19), the 81 S&P 500 members that have reported their quarterly results have seen consolidated earnings improve 3.8% from the prior-year period on 3.6% rise in revenues. Moreover, of these stocks 80.2% have surpassed earnings expectations while 63% beat sales estimates.

The next two weeks will see results pouring in from a large number of technology stocks. In sync with the trend so far, results from this dynamic sector are expected to be better than Q2. According to our model, this time consolidated earnings from the sector are expected to be down 0.4% year over year on 1% fall in sales. But if we exclude Apple (NASDAQ:AAPL) , earnings for the rest of the sector are expected to surge a healthy 4.5%. This is because despite the possibility of a beat this season, Apple’s results will still be muted compared to the prior-year quarter.

But it’s important to note that not all companies in the tech space have placed themselves well enough to gain.

Let’s have a look at three tech stocks that are set to release their quarterly numbers on Oct 24:

Cadence Design Systems Inc. (NASDAQ:CDNS) is well-known for its electronic design automation software and hardware technology. It has an Earnings ESP of 0.00% as the Most Accurate Estimate and the Zacks Consensus Estimate are both pegged at 18 cents. This Zacks Rank #3 (Hold) company has surpassed estimates in three of the trailing four quarters with an average beat of 14.99%. However, in the last quarter, the company delivered a negative earnings surprise of 5.56%.

MicroStrategy Inc. (NASDAQ:MSTR) develops enterprise ready analytics, security and mobile software platforms. The software company has been delivering weak results since the last two quarters. Last time, it missed the Zacks Consensus Estimate by over 25%. This Zacks Rank #3 company has an Earnings ESP of 0.00%, which makes us less confident of a beat this season.

Sohu.com Inc. (NASDAQ:SOHU) is a leading provider of online advertising, search, media and gaming services in China. The Zacks Rank #3 company has been impacted by sluggish macroeconomic conditions in China. Specifically, its brand advertising business has remained sluggish because of the lower spending levels. Sohu has an Earnings ESP of -45.12% as the Most Accurate estimate of a loss of $2.38 is wider than the Zacks Consensus Estimate of a loss of $1.64. (Read More: Sohu.com Q3 Earnings: What's in Store this Time?)

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