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inTest (INTT) to Report Q3 Earnings: What's in the Offing?

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Harley-Davidson (HOG) Q3 Earnings and Revenues Top Estimates (Revised)

Harley-Davidson (HOG) delivered earnings and revenue surprises of 41.67% and 1.98%, respectively, for the quarter ended December 2018. Do the numbers hold clues to what lies ahead for the stock?

inTest Corporation INTT is set to report third-quarter 2018 results on Nov 1.

We note that the company has outpaced the Zacks Consensus Estimate in the trailing four quarters, delivering an average positive surprise of 54.12%.

In the last reported quarter, inTest delivering non-GAAP earnings of 34 cents per share, recording a positive surprise of 47.83%. The figure surged increased 112.5% year over year and 54.5% sequentially.

Revenues increased 32.7% year over year and 11.6% sequentially to $21.1 million. The top line was driven by improved demand for the company’s test and industrial manufacturing solutions.

For the third quarter, the company expects non-GAAP earnings to lie between 21 cents and 25 cents per share. The Zacks Consensus Estimate is pegged at 22 cents per share.

Further, the company’s net revenues are projected to lie within the range of $19-20 million in third quarter.

Let’s see how things are shaping up for this quarter.

inTest Corporation Price and EPS Surprise

 

inTest Corporation Price and EPS Surprise | inTest Corporation Quote

Factors to Consider

The company’s solid momentum across all the end-markets on the back of its expanding customer base remains a major positive and is likely to aid the top line in the to-be-reported quarter.

inTest continues to gain momentum in the semiconductor industry on the back of its EMS product lines that are being used in the automated test system market. Further, increasing demand for Internet of Things (IoT), automotive sensors, mobility technologies in the semiconductor industry is also benefiting the company’s position in this particular space.

All these factors are strengthening the company’s semiconductor test business. Further, the demand for inTest’s semi-related products are anticipated to benefit its iTS division in the to-be-reported quarter.

Moreover, growing bookings across telecommunications, semiconductor and defense & aerospace markets are anticipated to aid growth in iTS division, which in turn will contribute to third-quarter net revenues.

Additionally, the company’s strengthening thermal segment is a major positive. Growth opportunities in industrial manufacturing and strong contributions from Ambrell buyout are likely to aid bookings within this segment.

We believe all these factors are expected to aid the company’s third-quarter results.

However, ongoing trade tension between the United States and China remains a concern as it is making the semiconductor market sluggish.

What Our Model Says

According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has 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.

inTest currently has a Zacks Rank #3 and an Earnings ESP of 0.00%, making the surprise prediction difficult.

Stocks That Warrant a Look

Here are few stocks worth considering as our model shows that it has the right combination of elements to deliver an earnings beat in the upcoming releases.

AMETEK AME has an Earnings ESP of +0.71% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Box BOX has an Earnings ESP of +5.41% and a Zacks Rank #3.

Analog Devices ADI has an Earnings ESP of +1.75% and Zacks Rank #3.

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