Electronics stocks are expected to have significantly benefited from the AI boom in second-quarter 2024. The growing integration of machine learning and especially generative AI technologies in consumer and commercial products is likely to have continued bolstering the demand for electronic components.

The increasing use of electronic equipment in electric and autonomous vehicles is likely to have benefited the electronic stocks in the quarter under review. 

IoT-supported industrial automation and rising demand for connected appliances in the consumer market are expected to have benefited the performances of electronics companies in the quarter under review. The solid adoption of AR/VR devices, cloud computing and IoT services is anticipated to have been a major positive.

Growing demand for positioning, surveying and machine-control products is likely to have benefited electronics stocks in the second quarter.

Their upcoming quarterly releases are also expected to reflect the ongoing technical advancement in the Internet infrastructure and telecommunication sector globally.

The solid uptake of smartwatches and wearables, which are comprised of fitness-tracking components, is likely to have aided the prospects of electronics companies in the to-be-reported quarter.

However, the electronics industry has significant exposure to the semiconductor industry, which has been suffering from escalating tensions between the United States and China. This is likely to have been concerning for the electronics companies.

Sneak Peek on a Few Upcoming Releases   

Let us see how industry players like Rogers (ROG Quick QuoteROG - Free Report) , Carrier Global (CARR Quick QuoteCARR - Free Report) and Data IO (DAIO Quick QuoteDAIO - Free Report) are poised ahead of their quarterly results, which are slated to be reported on Jul 25.

Rogers’ second-quarter 2024 performance is expected to have benefited from solid momentum across the Advanced Driver Assist Systems (“ADAS”), general industrial and renewable energy markets. Its focus on bolstering customer engagement, and developing and commercializing unique material solutions for leading-edge applications is expected to have aided its quarterly performance.

Strength in the power substrate technology, and solid demand for silicon carbide power modules, and electric and hybrid electric vehicles are likely to have been tailwinds. Increasing demand for advanced power substrates is likely to have continued driving the company’s momentum in the renewable energy markets.

However, declining portable electronic sales due to weak demand from key OEMs are anticipated to have been major concerns. Weak commercial aerospace demand is likely to have hurt Rogers’ prospects in the aerospace and defense market. A challenging macro environment is likely to have been a negative for the company in the to-be-reported quarter.

Rogers has an Earnings ESP of 0.00% and a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

For the second quarter, the Zacks Consensus Estimate for ROG’s revenues is pegged at $215 million, indicating a 6.9% decrease from the year-ago quarter’s actual.

The consensus estimate for earnings is pegged at 60 cents per share, implying a year-over-year decline of 43.9%. The estimate has been unchanged over the past 30 days.

Carrier Global’s second-quarter 2024 results are likely to have gained from strong momentum in Heating, Ventilating and Air Conditioning (HVAC), and aftermarket services. Solid demand for heating and cooling systems across residential and commercial applications is expected to have aided the HVAC segment. A high attachment rate for chillers and a strong aftermarket business are expected to have aided the performance of the aftermarket segment.

Increasing heat generation from AI chips is likely to have aided CARR’s prospects in the data center market in the second quarter. Carrier Global’s digital strategy is expected to have been a tailwind for the company. Its differentiated sustainability solutions are likely to have driven continued growth.

However, persistent weakness in the European residential market and macroeconomic uncertainty are expected to have been headwinds. (Read more: Carrier to Report Q2 Earnings: What's in the Cards?)

Carrier Global has an Earnings ESP of -1.78% and a Zacks Rank #3 at present. 

For the second quarter, the Zacks Consensus Estimate for CARR’s revenues is pegged at $7.05 billion, indicating a 17.7% increase from the year-ago quarter’s actual.

The consensus estimate for earnings is pegged at 84 cents per share, implying year-over-year growth of 6.3%. The estimate has been revised downward by 1.2% over the past 30 days.

Data IO is expected to have benefited from the growing momentum in ADAS, IoT and smart devices fields in the second quarter. Growing system wins for ADAS and a strong automotive funnel, which includes ADAS electrification and instrument clusters, are expected to have been positives.

Strength in Edge AI, which enables local data processing, latency reduction and privacy enhancement, is likely to have driven Data IO’s growth in the IoT market in the quarter under review. In addition, the company’s solid momentum in the programming technology for automotive, industrial and consumer markets on the back of its robust PSV family is expected to have contributed well to its quarterly performance.

However, a challenging macroeconomic environment is likely to have affected the company. High inflation and rising expenses are expected to have impacted the second-quarter performance negatively.

Data IO has an Earnings ESP of 0.00% and a Zacks Rank #3 at present. 

For the second quarter, the Zacks Consensus Estimate for DAIO’s revenues is pegged at $6.5 million, indicating a 12.2% fall from the year-ago quarter’s actual.

The consensus estimate for earnings is pegged at 2 cents per share, implying a year-over-year decline of 33.3%. The estimate has been unchanged over the past 30 days.

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