Look At Aug 8 Internet Stocks Q2 Earnings: RAX, SINA & More

As the second-quarter earnings cycle draws to a close, the picture that has emerged shows that we are still headed toward the fifth consecutive quarter of negative earnings growth. Encouragingly though, the rate of decline has slowed down modestly from the previous quarter.

For the Technology sector, total earnings are predicted to remain flat on 2.7% higher revenues, marking an improvement over last quarter’s 4.5% earnings decline on a 0.4% improvement in revenues.

Based on the quarterly results of 86.5% of the Technology sector’s total market cap in the index that have been declared so far, the industry has outperformed rather remarkably. Total earnings for these companies have dipped 0.8% on 2.6% higher revenues, with a whopping 81.4% beating earnings estimates and 76.7% exceeding top-line expectations.

Among the companies slated to report this week, let’s find out what’s in the cards for these four Internet stocks, all of which are scheduled to report second-quarter 2016 results on Aug 8.

Rackspace Hosting Inc. (NYSE:RAX) delivers computing-as-a-service, integrating the industry's best technologies into a flexible service offering, making computing more reliable and affordable. For the quarter, the company has an Earnings ESP of +4.76% and a Zacks Rank #3 (Hold).

The Zacks Consensus Estimate for the quarter is pegged at 21 cents. Last quarter, the company posted a positive earnings surprise of 68.18%. Notably, Rackspace has surpassed the Zacks Consensus Estimate thrice in the four preceding quarters with an average positive surprise of 24.09%.

SINA Corporation (NASDAQ:SINA) is a leading online media company and value-added information service provider for China and for global Chinese communities. For the quarter, the company has an Earnings ESP of 0.00% and a Zacks Rank #3.

The Zacks Consensus Estimate for the quarter is pegged at a loss of a penny. Last quarter, the company posted a negative earnings surprise of 125.00%. Notably, SINA has surpassed the Zacks Consensus Estimate twice and missed the same twice in the preceding four quarters, bringing the average negative surprise to 80.40%. (Read more: What Lies in Store for SINA Corp. in Q2 Earnings?)

Global Eagle Entertainment Inc. (NASDAQ:ENT) offers content and connectivity services for the airline industry. It provides airlines with in-flight video content, e-commerce and information services. For the quarter, the company has an Earnings ESP of 0.00% and a Zacks Rank #3.

The Zacks Consensus Estimate for the quarter is pegged at a loss of 3 cents. Last quarter, the company posted a positive earnings surprise of 33.33%. Notably, Global Eagle Entertainment has surpassed the Zacks Consensus Estimate twice in the preceding four quarters, matched it once and missed it on the other occasion, resulting in an average positive surprise of 108.33%.

WebMD Health Corp. (NASDAQ:WBMD) is engaged in offering health information services to physicians and other healthcare professionals, consumers, employers and health plans across the U.S. through its health-focused publications, public and private online portals and mobile platforms. For the quarter, the company has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell).

The Zacks Consensus Estimate for the quarter is pegged at 38 cents. Last quarter, the company posted a positive earnings surprise of 9.09%. Notably, WebMD Health has surpassed the Zacks Consensus Estimate in all of the preceding four quarters with an average positive surprise of 12.84%.