Information Technology Stocks Outperform Expectations Despite Downturn: Weekly Earnings Report

The spotlight was on information technology stocks this week as companies such as Apple, Super Micro Computer, Advanced Micro Devices, and Qualcomm reported their earnings. Despite the information technology sector being down nearly 6% quarter-to-date compared to the overall market downturn, out of the 21 companies that reported earnings this week, 19 beat expectations while two missed. On the revenue side, 14 companies exceeded estimates while seven fell short.

Apple’s shares rose after reporting better-than-expected second-quarter results, despite concerns about iPhone sales in China. The company also announced a $110 billion share buyback, the largest in the U.S. to date. Meanwhile, Super Micro Computer’s stock tumbled after a mixed third-quarter earnings report that fell short of market expectations, despite a significant increase in revenue from a year ago. Chipmaker AMD reported results and guidance that were in line with expectations.

So far this quarter, 42 out of 383 companies reporting results are part of the information technology sector. Various sub-industries within the sector, such as professional services, software, semiconductors