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What's in Store for These 4 Electronic Stocks This Earnings Season?
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Technology stocks’ upcoming results are anticipated to reflect the benefits of the growing proliferation of generative AI technology. Rising demand for generative AI chips required in Large Language Models, which is the base of this technology, is expected to have continued benefiting the electronics and semiconductor companies this earnings season.
Increasing adoption of Machine Learning, Augmented Reality/Virtual Reality devices, quantum computing, and cloud computing is expected to have aided the performances of the technology companies.
Electronic stocks are evolving on digital transformation and the growing demand for silicon across multiple markets. Technology transitions are driving product complexities, which are raising the demand for solutions provided by electronics solutions providers.
Increasing demand for data centers, driven by the need for increasing cloud capacity to support AI-related workloads, is anticipated to have acted as a tailwind for electronic stocks this earnings season.
Rising PC shipment and signs of improvement in memory spending, especially in NAND and DRAM, are likely to have aided performance this earnings season.
Sneak Peek on a Few Upcoming Releases
Let us see how the following electronics stocks are poised ahead of their results, which are slated to be reported on Jul 24.
Amphenol (APH - Free Report) is suffering from a challenging short-term wireless investment environment and weakness in spending by network operators and wireless equipment manufacturers.
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
Amphenol currently has an Earnings ESP of -1.24% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Nevertheless, Amphenol’s diversified business model lowers the risks posed by the volatility of individual end markets and geographies. This is expected to have been a tailwind for the company in the to-be-reported quarter.
KLA (KLAC - Free Report) also has an unfavorable combination with an Earnings ESP of 0.00% and a Zacks Rank #2 at present.
However, KLA’s fiscal fourth-quarter performance is expected to have benefited from the strong performance of the wafer inspection business, owing to strong demand for advanced wafer inspection applications in leading-edge technology development.
The increasing complexity in advanced packaging applications for AI and other advanced technologies is likely to have driven demand for KLA’s process tools and control products.
Meanwhile, TE Connectivity (TEL - Free Report) currently has the favorable combination of an Earnings ESP of +0.87% and a Zacks Rank #3.
TEL’s fiscal third-quarter performance is expected to have benefited from the well-performing transportation solutions segment. The growing proliferation of EVs and strong content trends in electronification is expected to have driven automotive sales.
However, declining sensor sales due to portfolio optimization activities are likely to have been a headwind. Further, sluggish commercial transportation and data and device sales might have been a major concern.
Teradyne (TER - Free Report) is another electronics stock that has a favorable combination of an Earnings ESP of +5.26% and a Zacks Rank #2.
TER’s second-quarter 2024 performance is expected to have benefited from strong demand for AI applications in semiconductor testing and the anticipated growth in the robotics segment.
The continued strength in AI-driven demand, particularly in ADAS (Advanced Driver Assistance Systems), compute networking and HBM (High Bandwidth Memory), is expected to have boosted TER’s performance in the second quarter. The demand for AI applications is contributing significantly to both the memory and compute sectors.
Image: Bigstock
What's in Store for These 4 Electronic Stocks This Earnings Season?
Technology stocks’ upcoming results are anticipated to reflect the benefits of the growing proliferation of generative AI technology. Rising demand for generative AI chips required in Large Language Models, which is the base of this technology, is expected to have continued benefiting the electronics and semiconductor companies this earnings season.
Increasing adoption of Machine Learning, Augmented Reality/Virtual Reality devices, quantum computing, and cloud computing is expected to have aided the performances of the technology companies.
Electronic stocks are evolving on digital transformation and the growing demand for silicon across multiple markets. Technology transitions are driving product complexities, which are raising the demand for solutions provided by electronics solutions providers.
Increasing demand for data centers, driven by the need for increasing cloud capacity to support AI-related workloads, is anticipated to have acted as a tailwind for electronic stocks this earnings season.
Rising PC shipment and signs of improvement in memory spending, especially in NAND and DRAM, are likely to have aided performance this earnings season.
Sneak Peek on a Few Upcoming Releases
Let us see how the following electronics stocks are poised ahead of their results, which are slated to be reported on Jul 24.
Amphenol (APH - Free Report) is suffering from a challenging short-term wireless investment environment and weakness in spending by network operators and wireless equipment manufacturers.
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
Amphenol Corporation Price and EPS Surprise
Amphenol Corporation price-eps-surprise | Amphenol Corporation Quote
Amphenol currently has an Earnings ESP of -1.24% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Nevertheless, Amphenol’s diversified business model lowers the risks posed by the volatility of individual end markets and geographies. This is expected to have been a tailwind for the company in the to-be-reported quarter.
KLA (KLAC - Free Report) also has an unfavorable combination with an Earnings ESP of 0.00% and a Zacks Rank #2 at present.
KLA Corporation Price and EPS Surprise
KLA Corporation price-eps-surprise | KLA Corporation Quote
However, KLA’s fiscal fourth-quarter performance is expected to have benefited from the strong performance of the wafer inspection business, owing to strong demand for advanced wafer inspection applications in leading-edge technology development.
The increasing complexity in advanced packaging applications for AI and other advanced technologies is likely to have driven demand for KLA’s process tools and control products.
Meanwhile, TE Connectivity (TEL - Free Report) currently has the favorable combination of an Earnings ESP of +0.87% and a Zacks Rank #3.
TEL’s fiscal third-quarter performance is expected to have benefited from the well-performing transportation solutions segment. The growing proliferation of EVs and strong content trends in electronification is expected to have driven automotive sales.
TE Connectivity Ltd. Price and EPS Surprise
TE Connectivity Ltd. price-eps-surprise | TE Connectivity Ltd. Quote
However, declining sensor sales due to portfolio optimization activities are likely to have been a headwind. Further, sluggish commercial transportation and data and device sales might have been a major concern.
Teradyne (TER - Free Report) is another electronics stock that has a favorable combination of an Earnings ESP of +5.26% and a Zacks Rank #2.
TER’s second-quarter 2024 performance is expected to have benefited from strong demand for AI applications in semiconductor testing and the anticipated growth in the robotics segment.
The continued strength in AI-driven demand, particularly in ADAS (Advanced Driver Assistance Systems), compute networking and HBM (High Bandwidth Memory), is expected to have boosted TER’s performance in the second quarter. The demand for AI applications is contributing significantly to both the memory and compute sectors.
Teradyne, Inc. Price and EPS Surprise
Teradyne, Inc. price-eps-surprise | Teradyne, Inc. Quote
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.