Tech earnings week: 21 of 22 companies beat profit forecasts

what happened

According to Seeking Alpha, 22 technology companies reported results this week. Of these, 21 beat profit estimates and 20 beat revenue expectations.

Microsoft earned an adjusted $4.89 per share for its fiscal first quarter, while revenue rose 19% to $92.28 billion. Cloud revenue reached $63.9 billion against a $61.62 billion estimate, and Azure grew 48%. The company expects second-quarter revenue of $96 billion to $97.1 billion.

Sandisk reported adjusted earnings of $49.51 per share and revenue of $11.03 billion, both ahead of forecasts. Its shares rose 3% in extended trading after erasing early losses. Intel, however, fell about 26% in premarket trading on Friday after guiding fourth-quarter revenue to $15 billion to $16 billion, well below the $17.05 billion estimate.

why it matters

Strong results support interest in the technology sector, but Intel's weak outlook shows how far expectations for individual companies can diverge. Apple, Qualcomm, AMD, Palantir and Super Micro Computer are scheduled to report next week.

market impact

US tech sector: a run of earnings beats supports sentiment; Intel: a weak outlook pressures the shares

• ▲US technology stocks pressure up — a run of earnings beats supports investor appetite
• ▼Intel shares pressure down — revenue and margin guidance came in below market expectations

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