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Semiconductor Stocks' Apr 28 Earnings Roster: AMD, XLNX, LSCC

Zacks Equity Research

Semiconductor stocks’ quarterly releases are expected to reflect strong data center markets owing to rapid adoption of cloud computing.

However, the semiconductor space is expected to have been impacted by the coronavirus outbreak in China that disrupted supply-chain significantly.

Additionally, the coronavirus-induced global lockdowns have been exerting pressure on the global economy for a while now. This has led to job losses and declining demand in semiconductor end markets like automobile and PCs.

Q1 Performance of Semiconductor Stocks

So far, semiconductor companies like Intel INTC, Lam Research LRCX and STMicroelectronics STM have delivered mixed results.

Intel’s first-quarter results benefited from growth in the data-centric businesses, driven by robust adoption of high-performance products that include Xeon Scalable processors. However, for 2020, Intel did not provided any guidance, citing business uncertainty and “limited visibility” pertaining to coronavirus crisis. (Read more: Intel's Q1 Earnings Beat, DCG Growth Aids Revenues)

Moreover, Lam Research’s earnings and revenues decreased sequentially in fiscal third quarter. The weak performance was induced by the temporary halt for on-site work at its Fremont and Livermore locations as well as stiff competition in the semiconductor capital equipment market. (Read More: Lam Research Q3 Earnings & Revenues Miss Estimates)

Further, STMicroelectronics delivered weak first-quarter 2020 results. Low demand in the automotive and digital segments as well as logistical challenges stemming from the pandemic has affected quarterly results.

What to Expect?

Given this backdrop, investors interested in the semiconductor domain keenly await quarterly reports from Advanced Micro Devices AMD, Maxim Integrated Products MXIM and Lattice Semiconductor LSCC on Apr 28.

AMD’s first-quarter 2020 results are expected to reflect robust adoption of the latest Ryzen, Radeon and EPYC server processors in the PC, gaming, cloud, HPC and data center verticals.

However, the company expects revenues in the lower end of its previous guidance due to the COVID-19 pandemic. Additionally, deteriorating trend in PC shipments in the first quarter, due to the coronavirus crisis-induced supply constraints, is likely to have weighed on the company’s performance in the to-be-reported quarter. (Read More: PC Shipments Fall in Q1 on Coronavirus-Led Supply-Chain Woes)

Moreover, AMD has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Advanced Micro Devices, Inc. Price and EPS Surprise

Advanced Micro Devices, Inc. Price and EPS Surprise

According to the Zacks model, the combination of a  positive Earnings ESPand Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that’s not the case with AMD.

Notably, the Zacks Consensus Estimate for AMD’s first-quarter earnings has been steady in the past 30 days at 18 cents per share. (Read more: AMD Gears Up to Report Q1 Earnings: What's in the Offing?)

Lattice Semiconductor’s first-quarter 2020 top line is likely to have benefited from solid momentum across the computing and communications market, primarily owing to the rapid deployment of 5G infrastructure.

However, softness in the consumer market due to headwinds like coronavirus is likely to have dented the company’s first-quarter revenues.

Lattice’s Earnings ESP of -5.41% dims possibilities of a beat despite a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Lattice Semiconductor Corporation Price and EPS Surprise

Lattice Semiconductor Corporation Price and EPS Surprise

Markedly, the Zacks Consensus Estimate for earnings has been stable in the past 30 days at 15 cents per share.

Maxim Integrated Products’ third-quarter fiscal 2020 performance is expected to have been supported by strong demand for optical products for both data center and 5G.

However, smartphone and industrial market weakness as well as the global coronavirus outbreak is anticipated to have negatively impacted third-quarter results.

Maxim has a Zacks Rank #4 (Sell).

Maxim Integrated Products, Inc. Price and EPS Surprise

Maxim Integrated Products, Inc. Price and EPS Surprise

Notably, the Zacks Consensus Estimate for earnings has declined by a penny to 57 cents in the past month.

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Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report Lam Research Corporation (LRCX) : Free Stock Analysis Report STMicroelectronics N.V. (STM) : Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report Maxim Integrated Products, Inc. (MXIM) : Free Stock Analysis Report Lattice Semiconductor Corporation (LSCC) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research