UK tech sector corporate earnings are subdued in the shortened week while in the US, a number of notable tech companies are reporting, despite earnings in general being relatively quiet. Tech names reporting across the pond include Broadcom, Zoom, Crowdstrike and DocuSign.
The week ahead
In the UK, Deep Matter Group PLC (LON: DMTR) reported December year-end finals this morning and (LON: ACT) announced interim results while (LON: CNIC) and (LON: IMMO) released trading updates. Meanwhile, discoverIE Group PLC (LON: DSCV) reports its March-year end finals on Thursday.
discoverIE, which designs, manufactures and supplies customised electronics for industry, said in its year-end trading update in April that trading momentum in the final two months of the year had continued to strengthen and the board expected underlying earnings for the full year to be above the upper end of market expectations. discoverIE said that group orders had increased by 17% organically in the last two months with double-digit growth in both of its divisions. This growth built on the 10% organic growth of the preceding four months and resulted in 12% organic growth for the second half. Orders in the second half were 40% ahead of the first half with a book to bill ratio of 1.19. Overall, group orders were 2% lower organically for the full year and ahead of sales.
Group sales in the second half were 9% ahead of the first half with a return to organic growth of 1% in the last two months of the year. Organically, second-half sales were 3% lower. As a result, group sales for the full year were 3% lower, and organically 6% lower, being 4% lower in the group’s Design & Manufacturing division and 8% lower in Custom Supply. There was a stronger performance in the key target markets which comprise renewable energy, medical, electrification of transportation and industrial & connectivity – these markets now account for over 70% of group sales. discoverIE acquired Phoenix America for US$11.0mln in October 2020 and completed the acquisition of Limitor GmbH in February 2021 for €14.5mln.
Across the pond, the key, tech-related companies expected to report this week include Hewlett Packard Enterprise, Zoom Video Communications, , Semtech, DocuSign, Guidewire Software, Splunk, Smartsheet, NetApp, nCino, Broadcom, , Crowdstrike, Sumo Logic, Slack and PagerDuty.
|01-Jun||Deep Matter||Final results||31-Dec|
|01-Jun||Actual Experience||Interim results||31-Mar|
|Early June||Trackwise||Final results||31-Mar|
|Week of 14/6||SEEEN||Final results||31-Dec|