This week will present a flurry of activity on the corporate earnings front. As the week winds down, the technology sector will have some of its brightest stars on display. Robust bottom line growth has been harder to achieve in the tech space in recent years, but most of these names should post respectable results. Here are four tech stocks to watch this week. (For more on the tech industry, check out A Primer On Investing In The Tech Industry.)

TUTORIAL: Earnings Quality

An Epic Run
Very few stocks in the technology space have been burning hotter than 8x8 (Nasdaq: EGHT). The stock has surged over 90% since the beginning of the year and is up over 230% since this time last year.

The telecom services company will report its fiscal Q1 results after the market close on Wednesday. Analysts are calling for the company to report EPS of 3 cents versus 2 cents in the prior-year quarter. Total revenue is expected to rise by 8.9% over the same time frame. 8x8 is coming off of a record quarter that benefited from its inside sales force helping to deliver a wealth of new business customers.

Microsoft (Nasdaq:MSFT) will also be checking in with its fiscal Q4 earnings after the market close on Wednesday. The consensus on Wall Street is that the company will announce a 13.7% pop in EPS on a 7.5% improvement in total revenue when compared to the year-ago quarter. MSFT shares are down about 1% so far this year.

Hitting a Wall
The chip company Advanced Micro Devices (NYSE:AMD) has had trouble getting on track this year, as its stock price has slipped 24% from a year ago. Given analysts' expectations, the company's Q2 results may not do much to help when AMD reports after the market close on Thursday. The company is expected to announce a 27.3% drop in EPS on a year-over-year basis. Total sales are expected to experience a 4.6% descent as AMD has been battling lower average selling prices.

AMD's archrival Intel (Nasdaq:INTC) has been experiencing better fortunes. The company recently announced a record Q2 that included a 37% increase in non-GAAP EPS on a 25% spike in total revenue when compared to the prior-year quarter. INTC shares have risen by 6% on the year.

One other tech company for investors to monitor this week is the flash data storage company SanDisk (Nasdaq:SNDK). The company is set to announce its Q2 results after the market close. Analysts are expecting an 8.3% year-over-year decline in quarterly EPS and a 14% upswing in total revenue. SNDK shareholders have seen the value of their investment decline by around 19% year-to-date.

The Bottom Line
With the exception of AMD, each of these tech companies is expected to grind out top-line growth in the high single-digit to low double-digit range. As most cost-saving initiatives in the technology space have already run their course since the economic downturn, profits will be harder to come by absent some revenue growth. Shareholders may be in need of some upside surprises this week if they want to see their investments kick into high gear. (For more on earnings, read Earnings Power Drives Stocks.)

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Tickers in this Article: EGHT, MSFT, AMD, INTC, SNDK

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