Yahoo! Inc. Stock not found YHOO just reported that revenue fell 11% to $1.09 billion and a loss of 10 cents per share (compared with plus 2 cents a year ago). So, why did the stock close up more than 4% at $37.84 Wednesday?
The boost, all part of a 30% share price bump over the past three months, may reflect the fact the company is for sale and valued at between $4 billion and $8 billion according to some analysts.
Is Yahoo! a “one-off” or is there value to be found in old school tech? In some cases, with stocks that follow, earnings have been reported recently. In others, they are yet to come.
Related: Blue Chips Blues And Blue Chip Booms
Analysts really like Cisco’s Meraki Cloud Services and its estimated double-digit bookings. Those same analysts believe Meraki will become a $1 billion business before the year is over and show a 50% to 70% compounded annual growth rate.
The move from 40 Gigabit Ethernet to 100 Gigabit Ethernet data center switching and next-gen security doesn’t hurt Cisco’s bottom line with Merrill Lynch saying it thinks risk/reward is very positive for investors at current levels.
Cisco is expected to next report earnings on 5/11/2016 with Zacks saying the consensus EPS forecast from its analysts for the quarter is $0.50. Last year, same quarter EPS was $0.48.
Chipmaker, Intel, closed down at the end of 2015 from the beginning of the year. With $21 billion cash on the books, however, analysts said they believed the dividend payout looked safe. Intel’s reputation and history make it one of the highest cash returning stocks in the market at approximately 8%.
The company’s sudden layoffs of 12,000 workers had heads on Wall Street spinning and generated talk of incompetent management. Meanwhile Barron’s reported that JP Morgan just raised its December 2016 PT on INTC from $38 to $39, based on “continued growth in data center, margin-expansion potential and rising payout ratios.”
Tuesday Intel reported EPS of 54 cents on $13.8 billion in adjusted sales. Wall Street expected 48 cents on $13.83 billion.
Microsoft with an impressive $99 billion on the balance sheet has caught the attention of portfolio managers who have added the stock to their holdings at an increasing pace all year.
Cloud transition, Office 365 and Azure are all expected to continue to be top contributors to Microsoft’s success, according to top analysts.
Microsoft reports earnings after the bell Thursday. Analysts expect EPS of 64 cents, which would be up slightly from the 61 cents per share reported last year.
IBM specializes in software, hardware and research related to IT. The company has long been a player in technology and personifies the term “blue chip” stock.
IBM’s hardware stock in trade, mainframes, remain popular in financial services and telecom and the company takes in a lot of revenue from those sectors. In addition, mainframes continue to grow in emerging markets, an area where IBM has, almost literally, no peers.
Earnings per share, reported Monday, were $2.35 on sales of $18.68 billion. Analysts had expected EPS of $2.09 on $18.29 billion in sales. Reaction from Cantor Fitzgerald analyst, Joe Foresi, was typical. “IBM,” Foresi said, “faces a long road back to growth despite gains in the tech giant's strategic imperatives.”
For more see: Announcing Our Free Earnings Screen
Yes, PC sales were down last year but that does not mean the PC is going away anytime soon. Businesses with serious computing needs simply don’t rely on tablets according to HPQ observers.
Moreover, analysts predict PC sales will get a bump in 2016 as business clients upgrade their computers.
Meanwhile, HPQ’s next earnings report is expected to be on 05/19/2016. According to Zacks, based on analysts' forecasts, the consensus EPS forecast for the quarter is $0.39. The reported EPS for the same quarter last year was $0.87.