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Technology Stocks' Earnings on May 3: SQ, FB, ANSS and More

The first-quarter earnings season is peaking at a moment when majority of the S&P 500 members are set to complete reporting by the end of this week (82.8% of the index's total membership).

As per the latest Earnings Preview , as of Apr 28, 288 S&P 500 members representing 63.8% of the index's total market capitalization have already reported quarterly numbers. Total earnings of these companies are up 13.7% on a year-over-year basis (76.4% of the companies beat EPS estimates) while total revenue is up 8.2% on a year-over-year basis (68.1% of the companies beat top-line estimates).

Notably, earnings and revenues growth numbers are significantly better than investors' expectations, primarily due to robust results from Technology, Industrial Products, Basic Materials and Energy.

Overall first-quarter earnings for S&P 500 companies are anticipated to be up 11.2% from the year-ago quarter on revenues that are estimated to increase 6.2%. This would be better than the +7.4% growth in fourth-quarter earnings on +4.8% higher revenues.

We note that almost 57.4% of the total market capitalization in the technology sector has reported till now. Total earnings are up 17.7% on a year-over-year basis (80% of the companies beat EPS estimates) while total revenue is up 6.2% on a year-over-year basis (73.3% of the companies beat top-line estimates).

Earnings for the Technology sector are anticipated to be up 13.9% on the back of 6.1% higher revenues, driven by strong broad-based growth.

Here we take a look at five technology companies that are set to report their quarterly earnings on May 3:

Square Inc . SQ looks likely to beat first-quarter 2017 estimates as it has a favorable combination of a Zacks Rank #3 (Hold) and an Earnings ESP of 12.50%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .

This is because, as per our proven model, a stock needs to have both a positive Earnings ESP and a Zacks Rank #1(Strong Buy), 2 (Buy) or 3 to beat...


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