TECH REPORTS
Analysts keeping focus on mobile advertising growth as quarterly results roll out
Analysts look to Silicon Valley as titans including Google, Microsoft ready earnings announcements,
Google, Facebook and Amazon are among the tech heavyweights this week reporting financial results for the first three months of 2015.
The strong U.S. dollar could be a drag on their earnings: Videostreaming giant Netflix missed profit forecasts because of exchange losses when it kicked off the earnings season on April 15.
Its shares soared thanks to stellar subscriber additions, but analysts aren’t expecting a similarly counterintuitive stock performance from the other tech stars. Look for signs of sustainable growth in advertising on mobile platforms. Yahoo Investors and analysts will be looking for evidence that Tumblr and web video business tweaks, along with changes to a search partnership with Microsoft, can boost market share for Yahoo. The tech company reports after markets close Tuesday and analysts are forecasting a 5-per-cent drop in revenue due in part to its diminished share of the U.S. search market. Analysts will also be keen for any update on Yahoo’s spinoff of its stake in Chinese e-commerce company Alibaba. Facebook Set to release first-quarter results late Wednesday, the leading social network offered a cautious outlook given an expected profit slowdown. Profit margins are likely to remain under pressure as CEO Mark Zuckerberg expands investment spending to attract more users and advertisers to mobile platforms. Facebook reported a mixed fourth quarter, with earnings shy of forecasts but revenue surging ahead on strong ad growth in the mobile market. Qualcomm A San Diego-based multinational semiconductor company that designs wireless products, Qualcomm topped earnings estimates in its most recent report but lowered its full-year earnings and revenue forecasts on a weak outlook for semiconductor sales. Qualcomm, which reports on Wednesday, is under pressure from activist investors to boost its share value. The stock is trading well back of its $76.50 (U.S.) consensus price target. Microsoft Slowing software demand on declining PC sales and the U.S. dollar exchange helped lower second-quarter earnings to 71 cents per share from 78 cents a year earlier. Microsoft reports fiscal 2015 third-quarter results Wednesday. Microsoft stock is down about 8 per cent this year after the company posted quarterly profit in January that met Wall Street forecasts. Google Shares of the search leader underperformed over the past year on concerns about the challenges mobile poses to its core business. Investors are hoping for a surprise from a portfolio that includes the Android mobile OS, YouTube and Google Wallet when the Menlo Park, Calif.-based company reports Thursday. Amazon The focus will be on web-services growth for the Seattle-based retailer when it reports Thursday, with sales at its first brick-and-mortar outlet at Indiana’s Purdue University also in the spotlight. Analysts will be looking for financial results at the high end of management’s growth forecast and the stock could be punished if profitability disappoints due to rising expenditures.