雅虎香港財經 Watch These 4 Electronics Stocks This Earnings: Beat or Miss?
Electronics companies are expected to benefit from a recovery in demand across several key end markets. The rapid deployment of 5G technology worldwide is likely to have stood out as a major catalyst for these companies in the to-be-reported quarter. With the expansion of 5G networks, there's a heightened demand for telecommunications equipment and infrastructure, which is likely to boost the earnings of firms operating in this industry.
Simultaneously, the increasing adoption of Internet of Things (IoT) technology and industrial automation across various industries could have buoyed the earnings of electronics companies catering to this market segment.
In the realm of consumer electronics, a rising appetite for connected appliances, smart devices and wearables is expected to contribute positively to earnings. Products like smartwatches, fitness trackers and home automation systems are witnessing robust demand, propelling sales for manufacturers.
Moreover, the automotive industry's shift toward electric and autonomous vehicles presents opportunities for electronics companies providing essential components. As the automotive sector embraces electrification and autonomy, firms in the electronics space could have seen an uptick in demand for their products in the to-be-reported quarter.
On the technological front, the increasing adoption of advanced technologies such as artificial intelligence (AI), machine learning (ML), augmented reality (AR), virtual reality (VR) and cloud computing could have driven demand for electronics products and services.
However, companies in this space have significant exposure to the semiconductor industry, which is suffering from escalating tensions between the United States and China. Tech export restrictions imposed on China have been hurting chipmakers. This is likely to have continued affecting the quarterly performances of the electronics stocks.
A few prominent electronics companies are lined up to report their quarterly numbers on May 1. Let's see how things have shaped up for Flex Ltd. FLEX, Avnet Inc. AVT, FormFactor, Inc. FORM and Entegris, Inc. ENTG ahead of their earnings releases.
Our quantitative model predicts an earnings beat for a company if it has a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). This combination increases the chances of an earnings beat.
Let’s delve deeper.
Flex will report fourth-quarter fiscal 2024 results. It surpassed the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average surprise being 13.8%. Moreover, our proven model predicts an earnings beat for FLEX this earnings season as it has an Earnings ESP of 1.36% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Flex’s fourth-quarter revenues is pegged at $6.1 billion, which indicates an 18.4% decrease from the year-ago quarter. The consensus estimate for the bottom line is pegged at 55 cents per share, which implies a year-over-year decrease of 3.5%.
Flex Ltd. Price and EPS Surprise
Flex Ltd. price-eps-surprise | Flex Ltd. Quote
Avnet is set to report third-quarter fiscal 2024 results. It topped the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 11.7%. However, our proven model does not conclusively predict an earnings beat for AVT this earnings season as it has an Earnings ESP of 0.00% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
The Zacks Consensus Estimate for Avnet’s revenues is pegged at $5.70 billion, which indicates a 12.5% decrease from the year-ago quarter. The consensus estimate for the bottom line is pegged at earnings of $1.11 per share, which implies a year-over-year decline of 44.5%.
Avnet, Inc. Price and EPS Surprise
Avnet, Inc. price-eps-surprise | Avnet, Inc. Quote
FormFactor will release its first-quarter 2024 results. It surpassed the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 17.3%. However, our proven model does not conclusively predict an earnings beat for FORM this earnings season as it has an Earnings ESP of 0.00% and a Zacks Rank #3 at present.
The Zacks Consensus Estimate for FormFactor’s revenues is pegged at $165.5 million, which indicates a 1.2% decrease from the year-ago quarter. The consensus estimate for earnings is pegged at 19 cents per share, which calls for a year-over-year improvement of 18.8%.
FormFactor, Inc. Price and EPS Surprise
FormFactor, Inc. price-eps-surprise | FormFactor, Inc. Quote
Entegris will release its first-quarter 2024 results. It surpassed the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average surprise being 15.1%. However, our proven model does not conclusively predict an earnings beat for ENTG this earnings season as it has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell) at present.
The Zacks Consensus Estimate for Entegris’ revenues is pegged at $769.6 million, which indicates a 16.6% decrease from the year-ago quarter. The consensus estimate for earnings is pegged at 61 cents per share, which calls for a decline of 6.2% from the year-ago quarter’s earnings of 65 cents.
Entegris, Inc. Price and EPS Surprise
Entegris, Inc. price-eps-surprise | Entegris, Inc. Quote
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Avnet, Inc. (AVT) : Free Stock Analysis Report
FormFactor, Inc. (FORM) : Free Stock Analysis Report
Flex Ltd. (FLEX) : Free Stock Analysis Report
Entegris, Inc. (ENTG) : Free Stock Analysis Report
