Yahoo Finance Electro Scientific (ESIO) Q2 Earnings: What's in the Cards?
Electro Scientific Industries ESIO is set to report second-quarter fiscal 2019 results on Oct 30.
The company beat the Zacks Consensus Estimate in the trailing four quarters, delivering an average positive surprise of 22.5%
In the last reported quarter, the company's earnings of 96 cents per share comfortably surpassed the Zacks Consensus Estimate by 12 cents. The figure jumped 152.6% year over year.
Electro Scientific posted revenues of $110.6 million, which surpassed the Zacks Consensus Estimate of $105 million and surged 52.1% year over year.
For second-quarter 2019, management expects revenues between $80 million and $90 million. Non-GAAP earnings are projected between 52 cents and 62 cents.
The Zacks Consensus Estimate for second-quarter revenues is currently pegged at $84.6 million, up 19.1% year over year. Moreover, the consensus mark for earnings has been steady at 57 cents over the last seven days.
Let’s see how things are shaping up for the upcoming announcement.
Factors to Consider
Electro Scientific is expected to benefit from strong demand for Multilayer Ceramic Capacitators (MLCC) test tools.
Electro Scientific Industries, Inc. Price and EPS Surprise
Electro Scientific Industries, Inc. Price and EPS Surprise | Electro Scientific Industries, Inc. Quote
Demand for MLCC, a passive component, is much higher than current supply due to growing proliferation in wireless connective and automotive applications. Hence, producers are expanding their MLCC production capacity that bodes well for the company’s test solutions.
However, sluggish demand for the company’s flexible circuit drilling solution is expected to hurt top-line growth in the near term. Moreover, print circuit board revenues are likely to decline. Further, service revenues are projected to remain flat or decline slightly in the to-be-reported quarter.
What Our Model Says
According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. The Sell-rated stocks (Zacks Rank #4 or #5) are best avoided.
Electro Scientific has a Zacks Rank #3 and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some companies, which, per our model, have the right combination of elements to post earnings beat this quarter:
Himax Technologies, Inc. HIMX has an Earnings ESP of +11.11% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
HubSpot, Inc. HUBS has an Earnings ESP of +57.58% and a Zacks Rank #2.
Apple AAPL has an Earnings ESP of +1.06% and a Zacks Rank #2.
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