Four times a year, public companies let investors know how they’re doing – and it’s that time again.
Some of the biggest tech companies will report earnings this week, and many will give clues about how they expect to perform in the second half of 2007. Here’s a look at some of the companies that matter most, and when they report – Intel CEO Paul Otellini will kick things off.
TUESDAY
Intel (INTC)
-Tuesday, July 17
-Semiconductors
-Average analyst estimate, according to Thomson Financial: profit of $.19 per share on $8.54 billion in revenue
The largest supplier of chips for computers. Look for signs that Intel is gaining back market share from smaller rival AMD, and listen for indications that Intel is optimistic about PC sales for the traditionally strong second half.
Yahoo (YHOO)
-Tuesday, July 17
-Online content and advertising
-Average analyst estimate, according to Thomson Financial: profit of $.11 per share on $1.24 billion in revenue
One of the most popular sites for Web content, and a hub for online advertising. Yahoo watchers will want to hear a vision from co-founder and new CEO Jerry Yang outlining how the company will win search share from Google.
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WEDNESDAY
eBay (EBAY)
-Wednesday, July 18
-Online retailing
-Average analyst estimate, according to Thomson Financial: profit of $.32 per share on $1.78 billion in revenue
The dominant site on the Web for auctions, payments (Paypal), and voice communication (Skype). Investors will look for signs that eBay’s growth is continuing domestically and internationally, and that the company will be able to integrate Skype into its other services to add value. Also, there will be questions about the battle between Paypal and Google Checkout.
Juniper Networks (JNPR)
-Wednesday, July 18
-Network equipment
-Average analyst estimate, according to Thomson Financial: profit of $.2 per share on $650 million in revenue
A major network equipment maker. Investors will want want to hear whether Juniper still expects fiscal 2007 revenues of between $2.6 billion and $2.7 billion. Shares have risen significantly since Juniper reported disappointing earnings three months ago, so the shares could be priced for another disappointment.
Logitech (LOGI)
-Wednesday, July 18
-Peripherals
-Average analyst estimate, according to Thomson Financial: profit of $.17 per share on $440 million in revenue
Designs peripherals for PCs and other digital devices. Because Logitech now does $2 billion in annual revenues, it often qualifies as a bellwether for the consumer electronics market. Any projections for the second half of 2007 will be particularly valuable.
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THURSDAY
AMD (AMD)
-Thursday, July 19
-Semiconductors
-Average analyst estimate, according to Thomson Financial: loss of $.85 per share on $1.26 billion in revenue
AMD had been sticking it to a larger and more sluggish Intel, but Intel has begun to respond with better chip designs at more competitive prices. AMD watchers will want some sign that the company’s profits aren’t being held underwater in the latest battle with Intel; they’ll also want a sense of when last year’s purchase of graphics chipmaker ATI will really start paying off. My bet: the stock will have already moved based on Intel’s report Tuesday.
Google (GOOG)
-Thursday, July 19
-Online advertising and applications
-Average analyst estimate, according to Thomson Financial: profit of $3.59 per share on $2.67 billion in revenue
Google has become Silicon Valley’s amazing profit machine; most researchers show that its search engine continues to gain market share and that its lead in advertising revenue continues unabated. Investors will want to hear the latest in Google’s love/hate relationship with eBay, and will want to know more about its plans for cell phones.
Microsoft (MSFT)
-Software
-Thursday, July 19
-Average analyst estimate, according to Thomson Financial: profit of $.39 per share on $13.28 billion in revenue
Reviewers have been tough on Microsoft’s Windows Vista, but analysts say customer adoption of the new operating system is going just about as expected. I anticipate a few questions about the Xbox 360 too, since Microsoft admitted this month that unspecified design errors will cost the company $1 billion. One area that could yield happy surprises: Sales of Office 2007.
Motorola (MOT)
-Thursday, July 19
-Cell phones and wireless equipment
-Average analyst estimate, according to Thomson Financial: profit of $.03 per share on $9.38 billion in revenue
Motorola, the number-two cell phone maker in the world, has already warned that Q2 earnings will be worse than expected. Those sub-par results have some investors calling for CEO Ed Zander to be sacked. Listen for a convincing game plan from Motorola management – or start the countdown on Zander’s employment.
SanDisk (SNDK)
-Thursday, July 19
-Flash memory
-Average analyst estimate, according to Thomson Financial: profit of $.15 per share on $790 million in revenue
Investors seldom know what to make of SanDisk, one of the leading makers of the flash memory cards that provide storage for all manner of digital devices. It goes through boom-bust cycles. On the one hand, demand for mobile storage is booming; on the other, flash providers have a habit of flooding the market with supply to gain market share, which can often send prices crashing. From what I can tell, we’re still very much in a high-supply, low-price environment for flash; I wouldn’t be surprised to see SanDisk’s earnings reflect that.
Seagate (STX)
-Thursday, July 19
-Hard drive storage
-Average analyst estimate, according to Thomson Financial: profit of $.36 per share on $2.69 billion in revenue
The story with hard drives isn’t much different. A supply glut has pushed prices down, and hurt the profits of companies like Seagate. As the biggest company in the hard drive business, Seagate is well positioned to survive the price war, but investors are suffering in the crossfire; they’ll be hoping for some indication that prices (and profits) will hold up during the busy second half of the year.
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NEXT WEEK
MONDAY
Netflix (NFLX) Digital content distribution
TUESDAY
Amazon.com (AMZN) Online retail
AT&T (T) Telecommunications (and iPhone)
Sony (SNE) Entertainment
WEDNESDAY
Akamai (AKAM) Internet delivery
Apple (AAPL) Hardware, software, retail and services
Baidu (BIDU) Chinese search engine
THURSDAY
Ingram Micro (IM) Wholesale information technology distribution
