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Can These 5 Electronics Stocks Hit Targets This Earnings Season?

Electronics stocks' quarterly releases are expected to reflect the ongoing technical advancement in the Internet infrastructure and telecommunication sector globally. Accelerated deployment of 5G technology is expected to have driven the industry participants’ performances in the quarter under review.

IoT-supported industrial automation, rising demand for connected appliances in the consumer market, and the growing proliferation of positioning, surveying and machine-control products are likely to have aided the industry players’ performances in the quarter under review.

Increasing use of electronic components in electric and autonomous vehicles is likely to have benefited these stocks in first-quarter 2024. The growing adoption of AR/VR devices, AI, ML, cloud computing, and IoT services are also expected to have contributed to the quarterly performances of these companies.

The rapid adoption of smartwatches and wearables, which are comprised of fitness-tracking components, is likely to have bolstered the demand for products offered by electronics companies.

However, these companies have significant exposure to the semiconductor industry, which is suffering from escalating tensions between the United States and China. Restrictions imposed on China tech exports have been hurting chipmakers. This is likely to have continued affecting the quarterly performances of the electronic stocks.

Sluggish memory spending is anticipated to have been concerning.

Sneak Peek on a Few Upcoming Releases

Let us see how industry players like Carrier Global CARR, KLA KLAC, OSI Systems OSIS and Rogers ROG are poised ahead of their quarterly results, which are slated to be reported on Apr 25.

Carrier Global’s first-quarter 2024 results are expected to reflect strong momentum in the Heating, Ventilating and Air Conditioning (“HVAC”) and aftermarket services. Rising demand for heating and cooling systems across both residential and commercial applications is expected to have driven growth in the HVAC segment in the quarter under review.

With an increasing number of connected chillers in the field and improved attachment rates for long-term service agreements, Carrier is likely to have capitalized on aftermarket opportunities, contributing to revenue growth and enhancing customer relationships. In addition, Carrier's acquisition of Viessmann Climate Solutions is expected to have been a significant growth driver in intelligent climate and energy solutions. (Read more: Carrier to Report Q1 Earnings: What's in the Cards?)

Notably, Carrier has an Earnings ESP of +0.44% and a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

For the first quarter, the Zacks Consensus Estimate for CARR’s revenues is pegged at $6.27 billion, indicating an 18.9% increase from the year-ago quarter’s actual.

The consensus estimate for earnings is pegged at 50 cents per share, implying a year-over-year decline of 3.8%. The estimate has been unchanged over the past 30 days.

Carrier Global Corporation Price and EPS Surprise

 

Carrier Global Corporation Price and EPS Surprise
Carrier Global Corporation Price and EPS Surprise

Carrier Global Corporation price-eps-surprise | Carrier Global Corporation Quote

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KLA’s third-quarter fiscal 2024 results are likely to reflect the impacts of growing momentum in its wafer inspection business, driven by strong demand for advanced wafer inspection applications in leading-edge technology development. Increased investments across multiple nodes and rising capital intensity in Foundry & Logic are expected to have driven top-line growth.

However, weakness in PCB, Display and Component Inspection is anticipated to have been a headwind. Softness in memory and leading-edge, logic and foundry investments is expected to have hurt the quarterly performance. (Read more: KLA Set to Report Q3 Earnings: What's in the Cards?)

Notably, KLA has an Earnings ESP of -2.04% and a Zacks Rank #4 (Sell) at present.

For the fiscal third quarter, the Zacks Consensus Estimate for KLAC’s revenues is pegged at $2.3 billion, indicating a 5.4% decrease from the year-ago quarter’s actual.

The consensus estimate for earnings is pegged at $4.94 per share, implying a year-over-year decline of 10%. The estimate has been revised downward by 3.9% over the past 30 days.

KLA Corporation Price and EPS Surprise

 

KLA Corporation Price and EPS Surprise
KLA Corporation Price and EPS Surprise

KLA Corporation price-eps-surprise | KLA Corporation Quote

OSI Systems is likely to have continued gaining from an expanding order book across its Healthcare, Optoelectronics and Manufacturing, and Security segments in third-quarter fiscal 2024. Strength in cutting-edge solutions is likely to have continued helping the company in winning contracts across various industries. OSI Systems’ strong vertically integrated global manufacturing footprint is expected to have aided its quarterly performance.

However, inventory correction activities of certain Opto customers are anticipated to have been concerning for the company. Further, the challenging hospital CapEx environment is likely to have hurt the prospects of the Healthcare division in the fiscal third quarter.

Notably, OSI Systems has an Earnings ESP of 0.00% and a Zacks Rank #3 at present.

For the fiscal third quarter, the Zacks Consensus Estimate for ROG’s revenues is pegged at $403.5 million, indicating a 33.2% increase from the year-ago quarter’s actual.

The consensus estimate for earnings is pegged at $2.11 per share, implying year-over-year growth of 41.6%. The estimate has been unchanged over the past 30 days.

OSI Systems, Inc. Price and EPS Surprise

 

OSI Systems, Inc. Price and EPS Surprise
OSI Systems, Inc. Price and EPS Surprise

OSI Systems, Inc. price-eps-surprise | OSI Systems, Inc. Quote

Rogers is expected to have benefited from strength in power substrate technology during first-quarter 2024. Solid demand for silicon carbide power modules, and EVs and HEVs is likely to have been a tailwind. Strong design wins in the company’s AES and EMS businesses are likely to have contributed well. The growing momentum in the industrial end market is expected to have been another tailwind. Solid demand for advanced power substrates is likely to have continued driving the company’s momentum in the renewable energy markets.

However, declining portable electronic sales due to weak demand from key OEMs are anticipated to have been major concerns. Weak commercial aerospace demand is likely to have hurt Rogers’ prospects in the aerospace and defense market. A challenging macro environment is likely to have been a negative for the company in the to-be-reported quarter.

Notably, Rogers has an Earnings ESP of 0.00% and a Zacks Rank #3 at present.

For the fiscal first quarter, the Zacks Consensus Estimate for ROG’s revenues is pegged at $210 million, indicating a 13.9% decrease from the year-ago quarter’s actual.

The consensus estimate for earnings is pegged at 55 cents per share, implying a year-over-year decline of 36.8%. The estimate has been unchanged over the past 30 days.

Rogers Corporation Price and EPS Surprise

 

Rogers Corporation Price and EPS Surprise
Rogers Corporation Price and EPS Surprise

Rogers Corporation price-eps-surprise | Rogers Corporation Quote

Stay on top of the upcoming earnings announcements with the Zacks Earnings Calendar.

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KLA Corporation (KLAC) : Free Stock Analysis Report

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OSI Systems, Inc. (OSIS) : Free Stock Analysis Report

Carrier Global Corporation (CARR) : Free Stock Analysis Report

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