In this article, we will take a look at the 10 tech socks that received price-target cuts from analysts after their recent earnings. You can skip our detailed analysis of these companies and go directly to Analysts are Cutting Price Targets of These 5 Tech Stocks After Earnings.
Famous tech companies, including software giant Microsoft Corporation (NASDAQ:MSFT), chip behemoth Intel Corporation (NASDAQ:INTC) and smartphone giant Apple Inc. (NASDAQ:AAPL), recently came into the spotlight after posting financial results for their respective quarters.
While Microsoft Corporation (NASDAQ:MSFT) and Intel Corporation (NASDAQ:INTC) failed to meet analysts’ estimates for Q2, Apple Inc. (NASDAQ:AAPL) easily surpassed the expectations despite macro-economic headwinds.
Meanwhile, analysts are responding to the latest earnings reports from these tech companies. For instance, analysts recently lowered their price targets for several tech stocks, including Microsoft Corporation (NASDAQ:MSFT), Shopify Inc. (NYSE:SHOP) and Texas Instruments Incorporated (NASDAQ:TXN).
Several other tech companies also received price-target revisions from analysts following their recent earnings. We will discuss the new price targets for these stocks in the remaining article.
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10. SAP SE (NYSE:SAP)
Number of Hedge Fund Holders: 14
Barclays recently trimmed its price target for SAP SE (NYSE:SAP) from $108 per share to $106 per share, following the German software company’s mixed financial performance for the second quarter.
While SAP SE (NYSE:SAP) surpassed sales expectations for the quarter, its profit fell short of estimates. The lower-than-expected quarterly profit was partly attributed to the suspension of operations in Russia. Moreover, its rapid shift to a cloud-based model also affected the earnings.
In addition, SAP SE (NYSE:SAP) lowered its adjusted operating profit outlook to a range of 7.6 – 7.9 billion euros for the full year, compared to its earlier projection of 7.8 billion – 8.25 billion euros.
9. Sensata Technologies Holding plc (NYSE:ST)
Number of Hedge Fund Holders: 34
Sensata Technologies Holding plc (NYSE:ST) received a price-target cut from Citi on Wednesday, July 27, 2022, following its second-quarter results. Citi analyst Jim Suva slashed his price target for the industrial technology company from $50 per share to $45 per share. Suva thinks that a strong dollar and lower automobile production outlook could impact the financial performance of Sensata Technologies Holding plc (NYSE:ST).
For the second quarter, Sensata Technologies Holding plc (NYSE:ST) reported adjusted earnings of 83 cents per share, marginally below the consensus of 84 cents per share. Revenue came in at $1.02 billion, behind analysts’ average estimate of $1 billion.
Separately, investment management firm Diamond Hill Capital also mentioned Sensata Technologies Holding plc (NYSE:ST) in its first-quarter 2022 investor letter, stating:
“Our bottom contributors included Sensata Technologies. Developer of industrial sensors, Sensata Technologies is facing ongoing uncertainty in the automotive industry tied to supply chain disruptions and semiconductor chip shortages.”
8. Juniper Networks, Inc. (NYSE:JNPR)
Number of Hedge Fund Holders: 35
KeyBanc slashed its price target for Juniper Networks, Inc. (NYSE:JNPR) from $46 per share to $36 per share on Wednesday, July 27, 2022. KeyBanc analyst Thomas Blakey referred to the supply-chain challenges that impacted the company’s gross margin in the second quarter.
The revised price target came a day after Juniper Networks, Inc. (NYSE:JNPR) missed profit expectations for the second quarter. The company earned 42 cents per share on an adjusted basis, while analysts were looking for 45 cents per share.
In addition, Juniper Networks, Inc. (NYSE:JNPR) said that it expects higher logistics and component costs to weigh on its gross margin and profitability in the coming quarters.
Like Juniper Networks, Inc. (NYSE:JNPR), analysts are also closely watching Microsoft Corporation (NASDAQ:MSFT), Intel Corporation (NASDAQ:INTC) and Apple Inc. (NASDAQ:AAPL) following their recent earnings.
7. Tenable Holdings, Inc. (NASDAQ:TENB)
Number of Hedge Fund Holders: 35
BTIG slashed its price target for Tenable Holdings, Inc. (NASDAQ:TENB) from $73 per share to $58 per share on Wednesday, July 27, 2022. BTIG analyst Gray Powell pointed toward macro headwinds that affected the company’s second-quarter results. Nevertheless, Powell expressed optimism over the long-term growth prospects of the cybersecurity company.
Shares of Tenable Holdings, Inc. (NASDAQ:TENB) lost nearly 16 percent of their value on July 27 following its Q2 performance.
Tenable Holdings, Inc. (NASDAQ:TENB) reported adjusted earnings of 5 cents per share on revenue of $164.3 million for the second quarter. On the other hand, analysts were looking for earnings of 1 cent per share on revenue of $163.27 million.
Looking forward, Tenable Holdings, Inc. (NASDAQ:TENB) anticipates adjusted earnings in the range of 3 – 4 cents per share and revenue between $169 – $171 million for the current quarter.
6. Corning Incorporated (NYSE:GLW)
Number of Hedge Fund Holders: 43
Susquehanna trimmed its price target for Corning Incorporated (NYSE:GLW) from $48 per share to $46 per share on Wednesday, July 27, 2022. Susquehanna analyst Mehdi Hosseini referred to the weak performance of the company’s display business in the second quarter.
Corning Incorporated (NYSE:GLW) reported that revenue from its display technologies segment fell 6 percent on a year-over-year basis to $878 million in Q2. Overall, the company reported core earnings of 57 cents per share, in line with the consensus. Moreover, total sales for the quarter came in at $3.76 billion, slightly below the expectations of $3.78 billion.
For the third quarter, Corning Incorporated (NYSE:GLW) expects to earn 51 – 55 cents per share on an adjusted basis, below analysts’ average estimate of 59 cents per share.
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Disclosure: None. Analysts are Cutting Price Targets of These 10 Tech Stocks After Earnings is originally published on Insider Monkey.
