Software Stocks Reporting Earnings On Jul 27: CA, MB & More

As Q2 earnings take center stage, Technology is likely to grab the limelight with several major Software companies scheduled to report earnings this week.

However, just like other sectors, technology too will be impacted by global growth concerns, a strengthening dollar and market volatility. An added concern is Britain’s decision to exit the European Union. Due to these factors, total earnings in the tech sector are expected to be down 3% on 2.7% higher revenues, which would follow last quarter’s 4.5% earnings decline on 0.4% higher revenues.

By Jul 22, 38% of the Technology sector’s total market capitalization in the S&P 500 index had reported results. Total earnings for these companies were down 0.2% year over year on 6.3% higher revenues. In spite of bleak year-over-year comparisons, a whopping 75% were able to surpass earnings estimates, while 81.3% beat on revenues.

Among the companies slated to report this week, let’s see what’s in store for these four major Software stocks, all of which are scheduled to release quarterly numbers on Jul 27.

CA Inc. (NASDAQ:CA) , one of the world's largest information technology management software companies, will report first-quarter fiscal 2017 results. For the quarter, CA Inc. has an Earnings ESP of 0.00% and a Zacks Rank #3 (Hold).

The Zacks Consensus Estimate for the quarter is pegged at 56 cents. Last quarter, the company posted a positive earnings surprise of 7.69%. Notably, CA Inc. has outperformed the Zacks Consensus Estimate in all of the trailing four quarters, with an average positive earnings surprise of 4.17%. (Read more: Will CA Inc. Pull Off a Surprise in Q1 Earnings?)

MINDBODY Inc. (NASDAQ:MB) , which is engaged in developing cloud-based business management software and payments platform for the wellness services industry, is set to report second-quarter 2016 results. For the quarter, MINDBODY has an Earnings ESP of 0.00% and a Zacks Rank #3.

The Zacks Consensus Estimate for the quarter is pegged at loss of 19 cents. Last quarter, the company posted a positive earnings surprise of 32.00%. Notably, MINDBODY has outperformed the Zacks Consensus Estimate thrice in the trailing four quarters and missed the same once, bringing the negative average earnings surprise to 33.46%. (Read more: What to Expect from MINDBODY this Earnings Season?)

Open Text Corporation (NASDAQ:OTEX) , a developer of innovative intranet, extranet and e-Business applications, is slated to report fourth-quarter fiscal 2016 results. For the quarter, Open Text has an Earnings ESP of +1.10% and a Zacks Rank #1 (Strong Buy).

The Zacks Consensus Estimate for the quarter is pegged at 91 cents. Last quarter, the company posted a negative earnings surprise of 10.71%. Notably, Open Text has outperformed the Zacks Consensus Estimate thrice in the trailing four quarters and missed the same once, bringing the positive average earnings surprise to 9.44%.

Support.com, Inc. (NASDAQ:SPRT) , which provides Instant Technology Relief to consumers and small businesses directly via channel partners and its www.support.com portal, will report second-quarter 2016 results. For the quarter, Open Text has an Earnings ESP of 0.00% and a Zacks Rank #3.

The Zacks Consensus Estimate for the quarter is pegged at a loss of 8 cents. Last quarter, the company posted a positive earnings surprise of 20.00%. Notably, Support.com has outperformed the Zacks Consensus Estimate thrice in the trailing four quarters and missed the same once, bringing the positive average earnings surprise to 12.52%.