Published on 22 Apr 2024 on Zacks via Yahoo Finance

Watch These 5 Technology Stocks for Q1 Earnings: Beat or Miss?

Technology stocks’ upcoming results are anticipated to reflect the benefits of the growing proliferation of generative AI technology. Rising demand for generative AI chips required in Large Language Models, which is the base of this technology, is expected to have continued benefiting the semiconductor companies in first-quarter 2024.Increasing adoption of Machine Learning, Augmented Reality/Virtual Reality devices, quantum computing, and cloud computing is expected to have aided the performances of the technology companies.Increasing demand for data centers, driven by the need for increasing cloud capacity to support AI-related workloads, is anticipated to have acted as a tailwind.Additionally, technical advancements in Internet infrastructure and the accelerated deployment of 5G technology worldwide are expected to have benefited technology stocks in the to-be-reported quarter.IoT-supported industrial automation, and the rising demand for smart electric appliances, wearables, electric vehicles and drones are expected to have acted as tailwinds for technology companies.Rising PC shipment, and signs of improvement in memory spending, especially in NAND and DRAM, are likely to have aided.However, a challenging geopolitical scenario due to escalating tensions between the United States and China is expected to have pushed the technology sector into a negative territory. Restrictions imposed on China tech exports have been hurting chipmakers. Further, the adverse effects of the ongoing war between Russia and Ukraine are likely to have hurt the prospects of the sector in the first quarter.Macroeconomic headwinds, high inflation and unfavorable currency fluctuations are anticipated to have been concerning.

Sneak Peek on a Few Upcoming Releases

Let us see how the following technology stocks are poised ahead of their first-quarter 2024 results, which are slated to be reported on Apr 23.Manhattan Associates MANH is likely to have continued gaining from strength across supply-chain execution, omnichannel and retail point of sale in the first quarter. The company is expected to have bolstered its omnichannel offerings on the back of its partnership with Shopify. Also, robust Manhattan Active Omni is expected to have driven the company’s momentum among omnichannel customers.Growing services revenues and increasing cloud subscriptions are likely to have contributed well to top-line growth. The expanding portfolio of cloud solutions is likely to have aided the company in achieving high customer satisfaction levels and boosting win rates. Solid momentum across retail, manufacturing and wholesale markets is expected to have been another positive.Notably, Manhattan Associates has an Earnings ESP of 0.00% and a Zacks Rank #3 (Hold) at present.Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.For the first quarter, the Zacks Consensus Estimate for MANH’s revenues is pegged at $243.32 million, indicating a 10.1% increase from the year-ago quarter’s actual.The consensus estimate for earnings is pegged at 87 cents per share, implying year-over-year growth of 8.7%. The estimate has been unchanged over the past 30 days.