The US tech sector's earnings season will accelerate in the coming days.
Although most of the attention will be on megacaps names such as Apple (NASDAQ :), Amazon (NASDAQ :), Google parent alphabet (NASDAQ :), (NASDAQ :), Tesla (NASDAQ :), and Facebook (NASDAQ :), investors would be wise to turn their attention to other high-flying companies that are poised to deliver strong long-term growth.
Here are three high-growth stocks in the technology sector explosive profit and revenue growth due to the rising demand for their innovative products. Each is worth considering in the run-up to their quarterly reports in the coming days.
1. Pinterest
Reports Thursday February 4 after markets close
Estimated earnings per share: + 175% on an annual basis
Estimated Sales Growth: + 61.1% YoY
Pinterest (NYSE 🙂 stocks – which were up about 250% in 2020 – have picked up where they left off last year, up 5% so far in 2021.
It in San Francisco, California Established social media company has benefited from increasing budget allocations from advertisers who want to avoid the toxic and controversial content on other social media platforms such as Facebook and Twitter (NYSE :).
PINS stock ended Tuesday at $ 69.24, pulling back from its all-time high of $ 76.88 reached on January 13, making the social media image-sharing network a market capitalization of approximately $ 45.6 billion.
Pinterest, which reported the third quarter of the blockbuster in late October, is expected to make its next earnings report on Thursday, February 4, after the closing bell.
Consensus estimates call for fourth quarter earnings per share of $ 0.33, an improvement from earnings per share of $ 0.12 a year earlier. Revenue is expected to grow 61% year-over-year to $ 644.2 million, driven by strong ad spend and high user engagement during the holiday season.
In addition to the top and bottom line numbers, investors will pay close attention to Pinterest's update on its global monthly active users (MAUs) to see if it can sustain its scorching growth rate . Global MAUs were up 37% year over year to 442 million in the last quarter.
Another important metric to focus on is Pinterest's Average Revenue Per User (ARPU). The social media company generated a US ARPU of $ 3.85 in the third quarter, while the non-US ARPU totaled $ 0.21, an increase of 31% and 66%, respectively, compared to the same quarter last year.
2. Fortinet
Reports Thursday February 4 after markets close
Estimated earnings per share: + 26.3% on an annual basis
Estimated Sales Growth: + 17.6% YoY
Cybersecurity specialist Fortinet (NASDAQ 🙂 has been one of the top-performing companies in the fast-growing cybersecurity industry in recent months, with a stock up about 40% since late October.
The cloud-based information security company has benefited from the increasing demand for its products and services as the COVID-19 pandemic accelerated digitization trends for enterprises. 12, the Sunnyvale, California-based company earns a valuation of $ 24.4 billion.
Fortinet, which exceeded third-quarter and revenue expectations at the end of October, then reports financial results after the US market closed on Thursday, February 4.
It has defeated or equaled Wall. Street estimates for 11 consecutive quarters, dating back to the first quarter of 2018.
Consensus estimates call for earnings of $ 0.96 per share, which would indicate annual EPS growth of 26%. Revenues are expected to increase by about 18% from the same period a year earlier to $ 722.5 million as the shift to working from home amid the COVID-19 pandemic has created massive demand for its security solutions.
Perhaps of more significance are growth rates in Fortinet's services segment, which includes offerings such as FortiGuard security plans and FortiCare technical support. This important activity achieved annual revenue growth of 22% in the third quarter.
3. Snap
Reports Thursday February 4 after markets close
Estimated earnings per share: + 58.8% on an annual basis
Estimated Sales Growth: + 51% YoY
Snap (NYSE :), the parent company of Snapchat social media app Snapchat, was another big winner in 2020, up 215% in stock as investors grew increasingly optimistic about the social media company.
The Santa Monica, a California-based technology company that has significantly outperformed its social media rivals such as Facebook and Twitter over the past 12 months, has experienced strong user growth and strong advertiser demand known.
SNAP share, up about 7% so far in 2021, came in at $ 53.29 last night, ahead of its all-time high of $ 57.39 on January 21 . At current levels, it has a market cap of approximately $ 81.2 billion.
Snap, whose sales and revenue crushed last quarter expectations, next reports financial results after the market closed on Thursday, Feb. 4.
Consensus calls for a loss of $ 0.07 per share for the fourth quarter, narrowed from a loss per share of $ 0.17 per year on an annual basis O. Revenues are expected to grow 51% versus the same quarter a year earlier to $ 846.9 million thanks to accelerated ad spend on the platform.
Additionally, details about Snap's daily active users (DAUs) will be at the center. . The multimedia messaging app has recently seen a resurgence in user growth, with DAUs up 18% from the same period a year ago, reaching a record high of 249 million in the third quarter.
Investors will pay close too. highlights the growth in Snap's total average revenue per user, which rose 28% in the third quarter to a record high of $ 2.73, indicating that the social media company has further improved its ability to monetize its user base.
