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Electronics Stock Jan 30 Earnings Roster: FLEX, NATI & More

Zacks Equity Research

Electronics stocks' quarterly releases are expected to reflect the ongoing technical advancement in the Internet infrastructure and telecommunication sector globally. Further, accelerated deployment of 5G technology is expected to have driven the industry participants’ performance in the quarter under review.

This was evident from Teradyne’s TER fourth-quarter results. The company’s earnings and revenues increased year over year driven by continued growth in 5G infrastructure and semiconductor test spending. Also, share gains in the memory test market aided growth in the quarter.

However, electronic companies have significant exposure to the semiconductor industry, which has been facing softness due to declining memory prices, lower chip demand from smartphone OEMs and the imposition of tariffs owing to the U.S.-China trade war.

Further, suspension of shipments to Huawei on account of the export ban imposed by the U.S. government is expected to affect electronics stocks’ quarterly results.

Key Drivers Remain Intact

IoT-supported industrial automation, rising demand for connected appliances in the consumer market, and growing proliferation of positioning, surveying and machine control products are likely to have aided electronics companies in the quarter under review.

Moreover, increasing usage of electronic components in smart cars and autonomous vehicles is likely to have benefited these stocks in the to-be-reported quarter. Also, growing adoption of AR/VR devices, AI, ML, cloud computing and IoT services is expected to reflect on the quarterly results.

Additionally, rapid adoption of smartwatches and wearables, comprising fitness tracking components, is likely to have bolstered demand for the products offered by electronics companies.

Sneak Peek Into a Few Upcoming Releases

Given this backdrop, let’s see how the following electronics stocks are poised ahead of their quarterly results, scheduled to release on Jan 30.

WESCO International’s (WCC) fourth-quarter 2019 revenues are expected to have benefited from the company’s solid momentum across all end-markets served, especially industrial, datacom and utility.

Additionally, positive contributions from acquisitions are anticipated to have a positive impact on fourth-quarter results.

The company also has a favorable combination of an Earnings ESP of +1.22% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Notably, the Zacks Consensus Estimate for earnings has moved 0.8% north to $1.33 over the past 30 days.

WESCO International, Inc. Price and EPS Surprise

 

WESCO International, Inc. Price and EPS Surprise

WESCO International, Inc. price-eps-surprise | WESCO International, Inc. Quote

Flex Ltd.’s FLEX third-quarter fiscal 2020 results are likely to reflect strength across lifestyle, energy and home end markets. Moreover, expansion in cloud data center design capabilities and 4G/5G network buildout are likely to have benefited the company during the quarter.

However, sluggish demand from China, soft demand from networking customers and weakness in the semiconductor capital equipment vertical are anticipated to have negatively impacted Flex’s performance in the fiscal third quarter.     

Our proven model does not conclusively predict an earnings beat for Flex 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. That is not the case here.

The company has an Earnings ESP of 0.00% and a Zacks Rank #3.

Notably, the Zacks Consensus Estimate for earnings has remained stable at 33 cents per share over the past 30 days.

You can see the complete list of today’s Zacks #1 Rank stocks here.

Flex Ltd. Price and EPS Surprise

 

Flex Ltd. Price and EPS Surprise

Flex Ltd. price-eps-surprise | Flex Ltd. Quote

National Instruments Corporation’s NATI fourth-quarter 2019 revenues 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 Huawei ban are anticipated to have a negative impact on fourth-quarter results.

The company has an Earnings ESP of 0.00% and a Zacks Rank #3.

Notably, the Zacks Consensus Estimate for earnings has per share has remained stable at 50 cents over the past 30 days.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

National Instruments Corporation Price and EPS Surprise

 

National Instruments Corporation Price and EPS Surprise

National Instruments Corporation price-eps-surprise | National Instruments Corporation Quote

Kemet Corporation’s KEM fiscal third-quarter earnings are likely to have benefited from strong demand for ceramics products and solid execution.

However, slowdown in the automotive segment, Europe and extended inventory levels in the distribution channel may reflect on the company’s results in the quarter to be reported.

Notably, the Zacks Consensus Estimate for earnings has remained stable at 36 cents over the past 30 days.

Kemet hasan Earnings ESP of 0.00% and a Zacks Rank #3.

Kemet Corporation Price and EPS Surprise

 

Kemet Corporation Price and EPS Surprise

Kemet Corporation price-eps-surprise | Kemet Corporation Quote

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Kemet Corporation (KEM) : Free Stock Analysis Report
 
WESCO International, Inc. (WCC) : Free Stock Analysis Report
 
Teradyne, Inc. (TER) : Free Stock Analysis Report
 
National Instruments Corporation (NATI) : Free Stock Analysis Report
 
Flex Ltd. (FLEX) : Free Stock Analysis Report
 
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