The current earnings season has seen some of the largest companies report quarterly financial results. The earnings reports from companies can help identify which companies are fairing well during the current economic climate and also point to sectors that could be outperforming others.
Here’s a look at how the sectors of technology and healthcare are performing.
What Happened: The technology sector is one of the top performing of the current earnings season, according to exclusive earnings data from Benzinga.
In the technology sector, 68.4% of companies have turned in earnings beats compared to analysts’ estimates, with another 1.8% reporting results that are in line and 29.8% of companies missing estimates.
The healthcare sector has seen 58.2% of companies beating consensus estimates, 1.3% reporting in line and 40.6% missing estimates.
In the last week, some of the technology companies that beat estimates were:
Western Digital WDC: EPS of $1.78 versus estimate $1.68
Skyworks Solutions SKWS: EPS of $2.44 versus estimate of $2.35
HubSpot HUBS: EPS of 44 cents versus estimate of 43 cents
Lyft Inc LYFT: EPS of 13 cents versus estimate of a loss of 3 cents
Dropbox DBX: EPS of 38 cents versus estimate of 37 cents
Datadog DDOG: EPS of 24 cents versus estimate of 15 cents
Related Link: This Sector Has The Worst Q2 Earnings Results So Far
Why It’s Important: The earnings data presented by Benzinga Pro can quickly be used to identify the health of a company as it reports earnings in relation to what analysts expected in the quarter.
As one of the stronger sectors in the current earnings season, the technology sector has seen share prices rise.
The Technology Select Sector SPDR ETF XLK is up 17% over the last month, compared to a year-to-date decline of 16.2%. The ETF has dropped 5.1% over the last year, but remains up 154% over the last five years, ranking as one of the better performing sector specific ETFs.
The Health Care Select Sector SPDR ETF XLV is up 3.1% over the last month, compared to a year-to-date decline of 5.7%. The ETF has dropped 1.2% over the last year, but remains up 66.9% over the last five years.
The strong earnings from stocks in the technology sector could signal further gains for the technology ETFs going forward.