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Electronics Stocks Nov 3 Earnings Lineup: OLED, LFUS, UEIC
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The technology sector is poised to grab the spotlight as we get into the busiest week of the Q3 earnings cycle.
Per the latest Earnings Outlook report, as of Nov 1, out of the 332 S&P 500 companies (74.1% of the index’s total membership) that have come up with their quarterly numbers, approximately 72.9% posted positive earnings surprises, while 55.4% beat top-line expectations. According to the report, earnings of these companies are up 1.9% from the same period last year, while revenues have increased 1.3%.
The trend this earnings season indicates that we may finally see a positive earnings picture after five straight quarters of decline. The report projects that earnings for the total S&P 500 companies will improve 2.1% from the year-ago period, while total revenue will grow 1.4%. We will have a clearer picture by the end of this week.
Technology Sector in Focus
Talking about the technology sector, 73.4% of the sector’s total market capitalization in the S&P 500 index has already reported results. Total earnings of these tech companies are up 0.8% from the same period last year on 1.3% higher revenues, with 83.8% beating earnings estimates and 73% surpassing revenue expectations.
Apple Inc.’s (AAPL - Free Report) dismal results proved to be a drag on the overall performance of the sector. The company’s Q3 earnings were down 19% from the same period last year on 9% lower revenues.
Let’s see what’s in store for three electronic stocks, all of which are expected to release quarterly numbers on Nov 3.
Universal Display Corp. (OLED - Free Report) , a developer of organic light emitting diode (OLED - Free Report) technologies and materials, is unlikely to beat third-quarter 2016 earnings estimates as it has a Zacks Rank #3 (Hold) and an Earnings ESP of 0.00%. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
This is because, as per our proven model, a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 to beat earnings. Conversely, we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Notably, Universal Display’s results did not compare favorably with the Zacks Consensus Estimate in the last four quarters, as it posted a negative earnings surprise of 26.62%. Last quarter, the company posted an 11.54% negative earnings surprise.
Similarly, we don’t expect Littelfuse Inc. (LFUS - Free Report) , a leading manufacturer and seller of fuses and other circuit protection devices, to post an earnings beat in third-quarter 2016 as it has a Zacks Rank #1 and an Earnings ESP of 0.00%. You can see the complete list of today’s Zacks #1 Rank stocks here
Notably, Littelfuse’s results compared favorably with the Zacks Consensus Estimate in the last four quarters, with an average beat of 5.81%. Last quarter, the company posted a 2.86% surprise.
Wireless control devices and chips developer Universal Electronics Inc. (UEIC - Free Report) is also unlikely to post an earnings beat as it has a Zacks Rank #3 and an Earnings ESP of 0.00%.
Notably, Universal Electronics’ results did not compare favorably with the Zacks Consensus Estimate in the last four quarters, as it posted a negative earnings surprise of 1.59%. Last quarter, its earnings matched the consensus mark.
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Electronics Stocks Nov 3 Earnings Lineup: OLED, LFUS, UEIC
The technology sector is poised to grab the spotlight as we get into the busiest week of the Q3 earnings cycle.
Per the latest Earnings Outlook report, as of Nov 1, out of the 332 S&P 500 companies (74.1% of the index’s total membership) that have come up with their quarterly numbers, approximately 72.9% posted positive earnings surprises, while 55.4% beat top-line expectations. According to the report, earnings of these companies are up 1.9% from the same period last year, while revenues have increased 1.3%.
The trend this earnings season indicates that we may finally see a positive earnings picture after five straight quarters of decline. The report projects that earnings for the total S&P 500 companies will improve 2.1% from the year-ago period, while total revenue will grow 1.4%. We will have a clearer picture by the end of this week.
Technology Sector in Focus
Talking about the technology sector, 73.4% of the sector’s total market capitalization in the S&P 500 index has already reported results. Total earnings of these tech companies are up 0.8% from the same period last year on 1.3% higher revenues, with 83.8% beating earnings estimates and 73% surpassing revenue expectations.
Apple Inc.’s (AAPL - Free Report) dismal results proved to be a drag on the overall performance of the sector. The company’s Q3 earnings were down 19% from the same period last year on 9% lower revenues.
Let’s see what’s in store for three electronic stocks, all of which are expected to release quarterly numbers on Nov 3.
Universal Display Corp. (OLED - Free Report) , a developer of organic light emitting diode (OLED - Free Report) technologies and materials, is unlikely to beat third-quarter 2016 earnings estimates as it has a Zacks Rank #3 (Hold) and an Earnings ESP of 0.00%. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
This is because, as per our proven model, a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 to beat earnings. Conversely, we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Notably, Universal Display’s results did not compare favorably with the Zacks Consensus Estimate in the last four quarters, as it posted a negative earnings surprise of 26.62%. Last quarter, the company posted an 11.54% negative earnings surprise.
UNIVL DISPLAY Price and EPS Surprise
UNIVL DISPLAY Price and EPS Surprise | UNIVL DISPLAY Quote
Similarly, we don’t expect Littelfuse Inc. (LFUS - Free Report) , a leading manufacturer and seller of fuses and other circuit protection devices, to post an earnings beat in third-quarter 2016 as it has a Zacks Rank #1 and an Earnings ESP of 0.00%. You can see the complete list of today’s Zacks #1 Rank stocks here
Notably, Littelfuse’s results compared favorably with the Zacks Consensus Estimate in the last four quarters, with an average beat of 5.81%. Last quarter, the company posted a 2.86% surprise.
LITTELFUSE INC Price and EPS Surprise
LITTELFUSE INC Price and EPS Surprise | LITTELFUSE INC Quote
Wireless control devices and chips developer Universal Electronics Inc. (UEIC - Free Report) is also unlikely to post an earnings beat as it has a Zacks Rank #3 and an Earnings ESP of 0.00%.
Notably, Universal Electronics’ results did not compare favorably with the Zacks Consensus Estimate in the last four quarters, as it posted a negative earnings surprise of 1.59%. Last quarter, its earnings matched the consensus mark.
UNIVL ELECTRS Price and EPS Surprise
UNIVL ELECTRS Price and EPS Surprise | UNIVL ELECTRS Quote
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Today's investment ideas are short-term, directly based on our proven 1 to 3 month indicator. In addition, I invite you to consider our long-term opportunities. These rare trades look to start fast with strong Zacks Ranks, but carry through with double and triple-digit profit potential. Starting now, you can look inside our home run, value, and stocks under $10 portfolios, plus more. Click here for a peek at this private information >>