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Tech Stocks to Report Earnings on May 10: NUAN, NEWR, SPNS

We are approaching the end of the Q1 earnings season. So far, 436 S&P 500 members or almost 87.2% of the index’s total membership have released quarterly numbers, thereby giving us a clear earnings picture of every sector except Retail, where a sizable number of companies are still yet to report results.

At the Technology sector, first-quarter results were marred by weaker-than-expected numbers from behemoths like Apple AAPL, Microsoft MSFT and Alphabet GOOGL. Notably, as of May 6, total earnings of all the companies, representing 88.5% of the tech sector’s total market capitalization in the S&P 500 index, were down 5.6% on 1% higher revenues.

Further, the earnings scenario for the overall tech sector in the quarter remains gloomy with the prediction of a year-over-year decline of 5%, despite a modest sales growth projection of 2.2%. (Read more: How is the Earnings Picture Evolving?)

Among the companies slated to report this week, let’s see what’s ahead for these three tech stocks, all of which are scheduled to release their quarterly numbers on May 10.

Nuance Communications, Inc. NUAN, a leading provider of speech and imaging solutions for businesses and consumers around the world, will report its second-quarter fiscal 2016 results. For the quarter, the company has an Earnings ESP of 4.76% and it sports a Zacks Rank #1 (Strong Buy). The Zacks Consensus Estimate stands at 21 cents.

Last quarter, the company posted a positive earnings surprise of 27.78%. In fact, Nuance has a healthy track record with respect to earnings, having delivered positive surprises in each of the last four quarters with an average beat of 39.75%.

Sapiens International Corporation N.V. SPNS is a leading global provider of proven IT solutions that modernize business processes, and enable insurance organizations and other leading companies to quickly adapt to change. The company has an Earnings ESP of 0.00% for the first quarter of 2016 and a Zacks Rank #3 (Hold). The Zacks Consensus Estimate for the to-be-reported quarter stands at 12 cents.

Last quarter, the company’s earnings came in line with the Zacks Consensus Estimate. Notably, in the preceding four quarters, Sapiens International has surpassed estimates on two occasions and met the same on the other two, resulting an average positive surprise of 11.81%.

New Relic, Inc. NEWR – a software analytics company – is slated to report its fourth-quarter fiscal 2016 results. For the to-be-reported quarter, this Zacks Rank #3 (Hold) company has an Earnings ESP of 0.00%. The Zacks Consensus Estimate is pegged at loss of 37 cents.

Last quarter, the company posted a positive earnings surprise of 14.29%. In fact, New Relic has delivered positive surprises in each of the last four quarters with an average surprise of 7.39%.

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APPLE INC (AAPL): Free Stock Analysis Report
 
MICROSOFT CORP (MSFT): Free Stock Analysis Report
 
NUANCE COMM INC (NUAN): Free Stock Analysis Report
 
ALPHABET INC-A (GOOGL): Free Stock Analysis Report
 
SAPIENS INTL NV (SPNS): Free Stock Analysis Report
 
NEW RELIC INC (NEWR): Free Stock Analysis Report
 
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