|To: Return to Sender who wrote (51184)||2/16/2011 2:09:38 PM|
|From: Donald Wennerstrom||1 Recommendation  Respond to of 62311|
|Tech Firms Remain Standouts In Solid Earnings Season |
By Ed Carson IBD
Mon., Feb. 14, '11 3:10 PM ET
Q4 earnings season is winding down, with nearly three-quarters of the S&P 500 already reporting results. And tech firms, not surprisingly, remain a standout.
81% of S&P 500 tech firms that have reported had topped analysts’ earnings forecasts as of Monday morning, according to data from Thomson Reuters. That’s second only to health care, where 83% have beaten views. Among all 10 sectors, it’s 72%. The long-term average is 62%.
Tech earnings are on track to climb 21.6% vs. a year earlier. That’s tied with industrials for 4th best. Financials, benefiting from one last ultra-easy year-earlier comparison, are delivering eye-popping growth. Energy and materials earnings are soaring along with demand and prices for commodities.
But where techs really stand out is with revenue. S&P 500 tech firms should end up with 16% sales growth, tied with energy as the best sector. And 80% of tech companies are beating revenue forecasts, more than any other sector.
Strong top-line growth bodes well for future earnings. Technology firms aren’t relying just on squeezing costs and other efficiency gains but on real and increasing demand for their wares and services.
Three tech firms in the IBD 50 report earnings this week, including the S&P 500’s NetApp (NTAP).