Semiconductor stocks are expected to be negatively impacted by declining memory prices (both DRAM and NAND), lower chip demand from smartphone OEMs and imposition of tariffs owing to the trade war between the United States and China.
Additionally, the suspension of shipments to Huawei due to the export ban imposed by the U.S. government hurt results of prominent chip-makers like Micron and Xilinx (XLNX - Free Report) in the current reporting cycle.
Data center revenues of Xilinx decreased 13% from the year-ago period, primarily due to the suspension of shipments to Huawei. Further, the ban forced the company to provide a weaker-than-expected outlook for second-quarter fiscal 2020.
However, Texas Instruments (TXN - Free Report) and Teradyne (TER - Free Report) provided better-than-expected top-line guidance for the third-quarter 2019, which indicates signs of improvement in the semiconductor space.
Further, PC shipments improved in the second quarter, which is a positive for the semiconductor industry.
In fact, turnaround in PC demand particularly in the commercial segment, led to the sequential increase in the top line of Intel (INTC - Free Report) . Moreover, this semiconductor giant has raised revenue guidance for the third quarter.
Let’s see what’s in store for the following three semiconductor stocks slated to report on Jul 29.
NXP Semiconductors N.V. (NXPI - Free Report) second-quarter 2019 results are expected to benefit from solid momentum across customers. Further, strong design wins are likely to aid the top line. Nevertheless, macro-economic uncertainties and slowing China economy remain headwinds.
Moreover, Eindhoven, Netherlands-based company has an unfavorable combination of a Zacks Rank #3 (Hold) and an Earnings ESP of 0.00%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
According to the Zacks model, a company with a Zacks Rank #1, 2 (Buy) or 3 has a good chance of beating estimates if it also has a positive Earnings ESP. Zacks Rank #4 (Sell) or #5 (Strong Sell) are best avoided.
The consensus mark for second-quarter earnings of NXP Semiconductors has been steady at $1.77 over the past 60 days.
Tempe, AZ-based Amkor Technology (AMKR - Free Report) second-quarter 2019 results are expected to be driven by increasing demand for its electronic content. Further, strength in its growing advanced system and package area is a positive. Further, the company remains optimistic about automotive business growth. However, slowdown in general market remains a major concern.
Moreover, the company has a Zacks Rank #2 and an Earnings ESP of 0.00%, which makes surprise prediction difficult.
The consensus mark for loss in the to-be-reported quarter has been steady at 7 cents per share over the past 60 days. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Rambus (RMBS - Free Report) second-quarter 2019 results are likely to be driven by strength in semiconductor, which is aiding it in winning new design contracts. Further, its focus on high-growth markets such as data center and networking, artificial intelligence and machine learning, IoT and automotive is a major positive.
Sunnyvale, CA-based company also has an unfavorable combination of a Zacks Rank #3 and an Earnings ESP of 0.00%.
The Zacks Consensus Estimate for second-quarter earnings has been steady at 20 cents per share over the past 60 days.
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