Electronics stocks’ first-quarter 2020 results are anticipated to reflect the impact of COVID-19 outbreak, which was first identified in China but rapidly transformed into a pandemic during the quarter.
COVID-19-induced global lockdown, which resulted in sluggish demand for smartphones, and automotive and consumer electronics, has been taking a toll on the world economy.
Per the latest Earnings Preview, the tech sector’s first-quarter earnings are anticipated to be down 0.7% from the year-ago period.
The rapidly spreading COVID-19 infection — which has caused disruptions in major economic zones — has turned into a full-blown global crisis due to slowdown in productions and operations owing to factory shutdowns, as well as sluggish spending patterns. This is likely to have impacted the electronics stocks in the to-be-reported quarter.
For instance, weakness in all key end markets — which in turn affected the performance of Transportation, Industrial and Communication segments — hurt TE Connectivity’s TEL fiscal second-quarter 2020 results. Moreover, coronavirus-induced disruptions remained a concern. Its results reflect year-over-year decline in both earnings and revenues.
However, growth opportunities associated with high-performance computing, accelerated deployment of 5G technology and digital automotive are expected to have driven the industry participants’ performance to some extent in the quarter under review.
Amkor Technology (AMKR) reported year-over-year increase in first-quarter 2020 earnings and revenues on account of solid demand for advanced packaging technologies in consumer and mobile communication markets.
Sneak Peek Into a Few Upcoming Releases
Given this backdrop, let’s see how the following electronics stocks are poised ahead of their first-quarter results, scheduled to release on Apr 30.
Fortive Corporation’s FTV upcoming quarterly results are likely to reflect end-market cyclicality. Yet, a strong product portfolio & healthy contribution from acquisitions may reflect on the results. (Read more: Fortive Gears Up for Q1 Earnings: What's in the Cards?)
Our proven model does not conclusively predict an earnings beat for Fortive this time around. The combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
Fortive has an Earnings ESP of 0.00% and a Zacks Rank #1.
Notably, the Zacks Consensus Estimate for the company’s first-quarter earnings has been unchanged at 73 cents per share over the past 30 days.
Fortive Corporation Price and EPS Surprise
Fortive Corporation price-eps-surprise | Fortive Corporation Quote
Generac Holdings Inc.’s GNRC to-be-reported-quarter’s revenues are expected to have benefited from strong home standby demand and strength in shipments of domestic, commercial and industrial stationary generators.
However, continued slowdown in international markets and coronavirus-induced disruptions are anticipated to have impacted its performance in the quarter to be reported.
The company has an unfavorable combination of a Zacks Rank #4 (Sell) and an Earnings ESP of +6.61%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Notably, the consensus mark for Generac Holdings’ first-quarter earnings has declined 5.2% to 73 cents per share over the past 30 days.
Generac Holdlings Inc. Price and EPS Surprise
Generac Holdlings Inc. price-eps-surprise | Generac Holdlings Inc. Quote
National InstrumentsCorporation’s NATI revenues for the quarter to be reported are expected to have benefited from strong growth in areas of 5G infrastructure equipment, electrification, active safety and autonomy.
However, weakness in the industrial market and the coronavirus impact are anticipated to reflect on first-quarter results.
The company has a Zacks Rank #4 and Earnings ESP of 0.00%. You can see the complete list of today’s Zacks #1 Rank stocks here.
National Instruments Corporation Price and EPS Surprise
National Instruments Corporation price-eps-surprise | National Instruments Corporation Quote
Arrow Electronics’ (ARW) quarterly earnings are likely to have been affected by low demand for components due to the prevalent geopolitical tensions and the virus impact.
Notably, the consensus mark for first-quarter earnings has been unchanged at $1.17 per share over the past 30 days.
It hasan Earnings ESP of 0.00% and a Zacks Rank #4.
Arrow Electronics, Inc. Price and EPS Surprise
Arrow Electronics, Inc. price-eps-surprise | Arrow Electronics, Inc. Quote
Rogers Corporation’s (ROG) to-be-reported quarter’s earnings are likely to have been hurt by the changing macroeconomic conditions, the virus impact, trade tensions, greater-than-anticipated pause in the 5G buildout and lower 4G demand.
Notably, the consensus mark for first-quarter earnings has decreased 3.5% to 82 cents per share over the past 30 days.
Rogers has an Earnings ESP of -3.66% and a Zacks Rank #3.
Rogers Corporation Price and EPS Surprise
Rogers Corporation price-eps-surprise | Rogers Corporation Quote
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TE Connectivity Ltd. (TEL) : Free Stock Analysis Report
National Instruments Corporation (NATI) : Free Stock Analysis Report
Rogers Corporation (ROG) : Free Stock Analysis Report
Generac Holdlings Inc. (GNRC) : Free Stock Analysis Report
Fortive Corporation (FTV) : Free Stock Analysis Report
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