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Laser Stocks' Earnings to Watch on Aug 9: LITE & RSTI
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We are now riding the last leg of the earnings season, with almost 1000 companies having released their numbers last week. With macroeconomic conditions still soft, earnings growth is projected to be negative for 7 of the 16 Zacks sectors (as of Aug 4). Further, growth for the benchmark S&P 500 index is on track to be in the red for the fifth quarter in a row.
As of Aug 4, we had results from 414 S&P 500 members (accounting for 85.2% of the index’s total market capitalization), of which about 70.3% have posted earnings beats and 51.9% trumped top-line estimates.
On the whole, our latest data projects that earnings for S&P 500 companies are now on track to decline 3.1% from the year-ago period, on 0.4% lower revenues. This is comparable to a decline of 6.2% expected earlier this season. This change hints toward some tell-tale signs of improvement in the overall earnings picture. (For more details, Read our latest Earnings Trends article)
The technology sector’s earnings are likely to remain unchanged this quarter on 2.7% higher revenues compared with the last year, according to our latest numbers. Notably, the sector had witnessed a decline of 4.5% in earnings on 0.4% higher revenues in the first quarter.
Let’s have a look at how some laser companies within the sector, like Rofin-Sinar Technologies Inc. and Lumentum Holdings Inc. (LITE - Free Report) , are poised ahead of their scheduled announcements tomorrow.
Rofin-Sinar: This company develops and markets laser sources and laser-based system solutions for industrial material processing applications worldwide. It caters to semiconductor and electronics, automotive, medical devices, consumer electronics, consumer goods markets and packaging and paper industry.
Rofin-Sinar has a decent earnings surprise history, with three earnings beats and one miss in the four trailing quarters. However, on an average, the company posted a negative earnings surprise of 3.4%, dragged down by a huge earnings miss of 33.3% last quarter.
Our proven model does not conclusively show that Rofin-Sinar is likely to beat on earnings in the to-be-reported quarter, as the company has an Earnings ESP of 0.00% and a Zacks Rank #5 (Strong Sell). The Zacks Consensus Estimate for the quarter is pegged at 35 cents.Note that we caution against Sell-rated stocks (Zacks Rank #4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Lumentum Holdings: This company manufactures and sellsinnovative optical and photonic products for optical networking and commercial laser customers worldwide.
Lumentum Holdings’ earnings history is a mixed bag. It beat the Zacks Consensus Estimate in two of the trailing four quarters, while missing in one, with an average positive surprise of 12.9%.In the last reported quarter, the company delivered a negative earnings surprise of 9.5%.
Our proven model does not conclusively show that Lumentum Holdings is likely to beat on earnings in the to-be-reported quarter, as the company presently has an Earnings ESP of 0.00% and a Zacks Rank #3 (Hold). The Zacks Consensus Estimate for the quarter is pegged at 22 cents. Though a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 increases the predictive power of ESP, a 0.00% Earnings ESP makes surprise prediction difficult.
Keep an eye on our full earnings articles to see how these players finally fared in quarter.
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Laser Stocks' Earnings to Watch on Aug 9: LITE & RSTI
We are now riding the last leg of the earnings season, with almost 1000 companies having released their numbers last week. With macroeconomic conditions still soft, earnings growth is projected to be negative for 7 of the 16 Zacks sectors (as of Aug 4). Further, growth for the benchmark S&P 500 index is on track to be in the red for the fifth quarter in a row.
As of Aug 4, we had results from 414 S&P 500 members (accounting for 85.2% of the index’s total market capitalization), of which about 70.3% have posted earnings beats and 51.9% trumped top-line estimates.
On the whole, our latest data projects that earnings for S&P 500 companies are now on track to decline 3.1% from the year-ago period, on 0.4% lower revenues. This is comparable to a decline of 6.2% expected earlier this season. This change hints toward some tell-tale signs of improvement in the overall earnings picture. (For more details, Read our latest Earnings Trends article)
The technology sector’s earnings are likely to remain unchanged this quarter on 2.7% higher revenues compared with the last year, according to our latest numbers. Notably, the sector had witnessed a decline of 4.5% in earnings on 0.4% higher revenues in the first quarter.
Let’s have a look at how some laser companies within the sector, like Rofin-Sinar Technologies Inc. and Lumentum Holdings Inc. (LITE - Free Report) , are poised ahead of their scheduled announcements tomorrow.
Rofin-Sinar: This company develops and markets laser sources and laser-based system solutions for industrial material processing applications worldwide. It caters to semiconductor and electronics, automotive, medical devices, consumer electronics, consumer goods markets and packaging and paper industry.
Rofin-Sinar has a decent earnings surprise history, with three earnings beats and one miss in the four trailing quarters. However, on an average, the company posted a negative earnings surprise of 3.4%, dragged down by a huge earnings miss of 33.3% last quarter.
ROFIN-SINAR Price and EPS Surprise
ROFIN-SINAR Price and EPS Surprise | ROFIN-SINAR Quote
Our proven model does not conclusively show that Rofin-Sinar is likely to beat on earnings in the to-be-reported quarter, as the company has an Earnings ESP of 0.00% and a Zacks Rank #5 (Strong Sell). The Zacks Consensus Estimate for the quarter is pegged at 35 cents.Note that we caution against Sell-rated stocks (Zacks Rank #4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Lumentum Holdings: This company manufactures and sellsinnovative optical and photonic products for optical networking and commercial laser customers worldwide.
Lumentum Holdings’ earnings history is a mixed bag. It beat the Zacks Consensus Estimate in two of the trailing four quarters, while missing in one, with an average positive surprise of 12.9%.In the last reported quarter, the company delivered a negative earnings surprise of 9.5%.
LUMENTUM HLDGS Price and EPS Surprise
LUMENTUM HLDGS Price and EPS Surprise | LUMENTUM HLDGS Quote
Our proven model does not conclusively show that Lumentum Holdings is likely to beat on earnings in the to-be-reported quarter, as the company presently has an Earnings ESP of 0.00% and a Zacks Rank #3 (Hold). The Zacks Consensus Estimate for the quarter is pegged at 22 cents. Though a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 increases the predictive power of ESP, a 0.00% Earnings ESP makes surprise prediction difficult.
Keep an eye on our full earnings articles to see how these players finally fared in quarter.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>