Electronic Stocks' Earnings on Jul 26: FTV, NATI, AXE & FLEX
The Q2 earnings season has started to gather steam, with results from 87 S&P 500 members already on the board as of Jul 20.
Per the latest Earnings Preview, approximately 86.2% of the companies delivered positive earnings surprises, while 77% surpassed top-line expectations. Earnings of these companies grew 20.9% from the comparable period last year, while revenues were up 10.3%.
Technology is one of the 11 sectors which are anticipated to report double-digit earnings growth this quarter. Per the report, total earnings for the tech sector are projected to be up 24.5% while revenues are expected to be 11.4% higher on a year-over-year basis.
The sector that is highly dependent on semiconductors and electronic designs, instruments and equipments, continues to benefit from growing adoption of augmented reality (AR)/virtual reality (VR) devices, 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 the internet infrastructure and telecommunication sector worldwide. Moreover, increasing usage of electronic devices in healthcare, aerospace & defense and consumer sectors continue to benefit the industry.
Further, increased spending by manufacturers of semiconductors, automobiles, machineries, mobile phones and LED displays remain tailwinds.
However, this does not imply an earnings beat for all the companies operating in this particular industry as growth prospects of a company depends primarily on its fundamentals, strategic plans and demand for its product.
According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. The Sell-rated stocks (Zacks Rank #4 or 5) are best avoided. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Meanwhile, we caution against the stocks with a Zacks Rank #4 (Sell) or 5 (Strong Sell) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Here we take a look at four electronic stocks that are set to report their quarterly results on Jul 26.
Fortive Corporation FTV is set to report second-quarter 2018 results on Jul 26. The company offers industrial technology and professional instrumentation solutions on a global basis.
Fortive is expected to benefit from strong product portfolio and improving performance in end markets. Additionally, positive contributions from the strategic acquisitions of eMaint, Orpak, Landauer and Industrial Scientific will drive the segmental results.
Notably, the company topped the Zacks Consensus Estimate in the trailing four quarters, with an average positive earnings surprise of 4.73%.
The Zacks Consensus Estimates for earnings and revenues in the second quarter are pegged at 89 cents and $1.83 billion, respectively.
On comparison of these estimated figures with the reported figures in the year-ago quarter, earnings and revenues exhibit growth of 25.3% and 12.3%, respectively.
The company has a favorable combination of a Zacks Rank #3 and an Earnings ESP of +0.84%. Consequently, our proven model indicates that the company is likely to beat earnings estimates. You can see the complete list of today’s Zacks #1 Rank stocks here.
Fortive Corporation Price and EPS Surprise
Fortive Corporation Price and EPS Surprise | Fortive Corporation Quote
National Instruments Corporation NATI is scheduled to report second-quarter 2018 results on Jul 26. It is a manufacturer of automated test equipments and virtual instrumentation software.
Notably, the company has delivered an average positive earnings surprise of 3.91% by beating the Zacks Consensus Estimate in the trailing four quarters.
The Zacks Consensus Estimates for the earnings and revenues in the to-be-reported quarter are pegged at 29 cents and $335.6 million, respectively.
On comparison of these estimated figures with the reported figures in the year-ago quarter, earnings and revenues reflect growth of 7.4% and 5.4%, respectively.
The company has a Zacks Rank #3 but an Earnings ESP of 0.00%. Therefore, our model does not conclusively show an earnings beat for the company.
National Instruments Corporation Price and EPS Surprise
National Instruments Corporation Price and EPS Surprise | National Instruments Corporation Quote
Anixter International Inc. AXE is slated to report second-quarter 2018 results on Jul 26. The company is a leading global distributor of network & security, electrical & electronic and utility power solutions.
Notably, the company has missed the Zacks Consensus Estimate in two of the trailing four quarters while beating and matching the same once, recording a negative average earnings surprise of 5.09%.
This is in sync with the company’s current ratings. Anixter carries a Zacks Rank #3 and an Earnings ESP of 0.00%. Consequently, surprise prediction is difficult.
The Zacks Consensus Estimates for the earnings and revenues in the to-be reported quarter are pegged at $1.42 and $2.1 billion, respectively.
On comparison of these estimated figures with the reported figures in prior-year quarter, earnings and revenues reflect growth of 4.4% and 5%, respectively.
Anixter International Inc. Price and EPS Surprise
Anixter International Inc. Price and EPS Surprise | Anixter International Inc. Quote
Flex Ltd. FLEX is set to report first-quarter fiscal 2019 results on Jul 26. It is a provider of “Sketch-to-Scale” services to original equipment manufacturers (OEMs). New business wins are likely to drive Flex’s results in the to-be-reported quarter.
The company has missed the Zacks Consensus Estimate in two of the trailing four quarters while outpacing the same in the remaining two, recording an average negative earnings surprise of 0.76%.
Flex carries a Zacks Rank #5 and an Earnings ESP of -4.17%. Thus, our proven model does not indicate earnings beat in the to-be reported quarter.
The Zacks Consensus Estimates for earnings and revenues for the quarter under review are projected at 24 cents and $6.49 billion, respectively. On comparison of these estimated figures with the reported figures in prior-year quarter, earnings and revenues reflect growth of 14.3% and 8%, respectively.
Flex Ltd. Price and EPS Surprise
Flex Ltd. Price and EPS Surprise | Flex Ltd. Quote
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