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Electronics Stocks' Q3 Earnings on Oct 31: GRMN, TEL & LFUS
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Total third-quarter earnings of the technology sector are expected to be up 23.6% on 12.1% higher revenues, per the latest Earnings Preview. The sector, which is highly dependent on semiconductors and electronic designs, as well as instruments and equipment, continues to benefit from the growing adoption of augmented reality (AR)/virtual reality (VR) devices, along with emerging trends of artificial intelligence (AI), machine learning, cloud computing, autonomous vehicles and IoT services.
All these factors are aiding growth of the Electronic industry, which is currently riding on the ongoing technical advancement in Internet infrastructure and the telecommunication sector worldwide. Moreover, the industry is benefiting from growing proliferation of electronic devices in every major sector, namely consumer, automobile, industrial, aerospace & defense, and communications.
Also, increasing usage of tracking meters and navigation devices in smart and connected cars is driving growth of the industry participants. Moreover, strong demand for testing solutions in satellites, radar and surveillance system is a key catalyst.
Our research shows that the combination of a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) and a positive Earnings ESP increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Let’s take a look at three companies that are set to report third-quarter numbers on Oct 31.
Garmin Ltd.’s (GRMN - Free Report) focus on continued innovation, diversification and market expansion to explore growth opportunities in all its business segments will help drive top-line growth. However, macroeconomic challenges remain part of the operating environment.
Notably, the company has a record of delivering a positive earnings surprise in the trailing four quarters, with an average beat of 13.55%.
TE Connectivity Ltd.’s (TEL - Free Report) strong progress on strategic priorities and solid execution should drive growth in the to-be-reported quarter. The recent sale of subcom business should help lift margins of the Communications segment. Additionally, the company’s Transportation and Industrial Solutions segments should perform well in the quarter to be reported.
Notably, the company delivered a positive earnings surprise in the trailing four quarters, with an average beat of 7.14%.
Littelfuse, Inc. (LFUS - Free Report) delivered a positive earnings surprise in the trailing three quarters, with an average beat of 11.83%. It has an Earnings ESP of 0.00% and carries a Zacks Rank #4 (Sell).
For the third quarter, management expects net sales in the range of $434-$446 million and adjusted earnings per share within $2.31-$2.45, up 13% year over year.
We caution against stocks with a Zacks Rank #4 or 5 (Strong Sell) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
Electronics Stocks' Q3 Earnings on Oct 31: GRMN, TEL & LFUS
Total third-quarter earnings of the technology sector are expected to be up 23.6% on 12.1% higher revenues, per the latest Earnings Preview. The sector, which is highly dependent on semiconductors and electronic designs, as well as instruments and equipment, continues to benefit from the growing adoption of augmented reality (AR)/virtual reality (VR) devices, along with emerging trends of artificial intelligence (AI), machine learning, cloud computing, autonomous vehicles and IoT services.
All these factors are aiding growth of the Electronic industry, which is currently riding on the ongoing technical advancement in Internet infrastructure and the telecommunication sector worldwide. Moreover, the industry is benefiting from growing proliferation of electronic devices in every major sector, namely consumer, automobile, industrial, aerospace & defense, and communications.
Also, increasing usage of tracking meters and navigation devices in smart and connected cars is driving growth of the industry participants. Moreover, strong demand for testing solutions in satellites, radar and surveillance system is a key catalyst.
Our research shows that the combination of a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) and a positive Earnings ESP increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Let’s take a look at three companies that are set to report third-quarter numbers on Oct 31.
Garmin Ltd.’s (GRMN - Free Report) focus on continued innovation, diversification and market expansion to explore growth opportunities in all its business segments will help drive top-line growth. However, macroeconomic challenges remain part of the operating environment.
Notably, the company has a record of delivering a positive earnings surprise in the trailing four quarters, with an average beat of 13.55%.
Currently, Garmin has a Zacks Rank #1 and an Earnings ESP of 0.00%. (Read more:Garmin to Report Q3 Earnings: What's in the Offing?)
Garmin Ltd. Price and EPS Surprise
Garmin Ltd. Price and EPS Surprise | Garmin Ltd. Quote
TE Connectivity Ltd.’s (TEL - Free Report) strong progress on strategic priorities and solid execution should drive growth in the to-be-reported quarter. The recent sale of subcom business should help lift margins of the Communications segment. Additionally, the company’s Transportation and Industrial Solutions segments should perform well in the quarter to be reported.
Notably, the company delivered a positive earnings surprise in the trailing four quarters, with an average beat of 7.14%.
TE Connectivity has a Zacks Rank #3 and an Earnings ESP of -1.42%. You can see the complete list of today’s Zacks #1 Rank stocks here.
TE Connectivity Ltd. Price and EPS Surprise
TE Connectivity Ltd. Price and EPS Surprise | TE Connectivity Ltd. Quote
Littelfuse, Inc. (LFUS - Free Report) delivered a positive earnings surprise in the trailing three quarters, with an average beat of 11.83%. It has an Earnings ESP of 0.00% and carries a Zacks Rank #4 (Sell).
For the third quarter, management expects net sales in the range of $434-$446 million and adjusted earnings per share within $2.31-$2.45, up 13% year over year.
We caution against stocks with a Zacks Rank #4 or 5 (Strong Sell) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Littelfuse, Inc. Price and EPS Surprise
Littelfuse, Inc. Price and EPS Surprise | Littelfuse, Inc. Quote
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>