Technology Earnings On Tap

By Billy Fisher | April 16, 2012 AAA

Early next week, there will be a great deal of anticipation for a number of technology companies getting set to report earnings. Many other sectors will also be spewing out earnings reports, but maybe the most anticipated release of the earnings season will take place on Tuesday, when Apple (Nasdaq:AAPL) checks in with its fiscal Q2 results. Here are four tech stocks to keep an eye on as we head into next week.

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Lone Star Love
On Tuesday, the semiconductor company Texas Instruments (Nasdaq:TXN) is slated to announce its Q1 after the market close on Monday of next week. Investors will be holding their collective breath until then. The company lowered its outlook for the quarter last month, as it has seen a lower-than-expected demand for its wireless products.

Texas Instruments is now calling for earnings per share (EPS) in a range of 15 cents to 19 cents on revenue of $2.99 billion to $3.11 billion. The company posted EPS of 55 cents on revenue of $3.39 billion in the prior year quarter. Shares of Texas Instruments have climbed roughly 10.6% so far this year.

The Chinese Internet search provider Baidu (Nasdaq:BIDU) will release its quarterly results after the closing bell on Tuesday. The consensus among analysts is that the company will announce EPS of 84 cents versus 47 cents in the year-ago quarter. Total revenue is expected to surge by about 82.1% over the same time frame. Baidu has seen its stock price jump around 30% year-to-date.



SEE: How To Decode A Company's Earnings Reports

An Apple a Day
Expectations are especially high for Apple as it prepares to report its earnings after the market close on Tuesday of next week. Analysts are looking for approximately a 54% leap in EPS on a 47% pop in sales, when compared to the company's fiscal Q2 last year. Apple has beaten estimates in three of the last four quarters.


Investors should pay particularly close attention to iPad sales trends, in order to determine how much upside the product gives Apple. The company is hoping that the new iPad (third generation) can gain traction in China, as its Wi-Fi version was recently cleared for sale in the country. Apple loyalists are also hoping that they might be able to glean some insight into when an iPhone 5 may be launched, based on the company's forecast for its Q3.

Apple's old running mate with the iPhone, AT&T (NYSE:T), will also announce its earnings on Tuesday. Wall Street is calling for the company to announce EPS of 58 cents versus 57 cents in the prior year quarter. Total revenue is projected to increase by about 2%. AT&T shares are up only around 1% on the year.

SEE: 5 Tricks Companies Use During Earnings Season


The Bottom Line
The four tech companies are bound to provide investors with a mixed bag of news in the coming days. Apple and Baidu should wow us with especially lofty growth. Potential investors in any of these names may be best served by waiting on the sidelines until after the earnings announcements come out and volatility settles down. Those looking for a gamble will probably want to get their bets in beforehand.

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At the time of writing, Billy Fisher did not own shares in any of the companies mentioned in this article.

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