Technology stocks are anticipated to see a sluggish first-quarter 2020 earnings season, primarily due to the coronavirus (COVID-19) outbreak in China that disrupted supply-chain significantly.
Moreover, the coronavirus-induced global lockdowns have been taxing the global economy for a while now, resulting in job losses and declining demand for tech devices and services.
Tech giants including Apple and Microsoft warned investors that the novel coronavirus will mar their business prospects. Twitter, Pinterest and Facebook are some of the notable tech companies, which either dissolved their issued projections or cautioned against earnings misses due to a weakening advertising market.
Nevertheless, the work-from-home as well as online-learning trend is expected to have benefited Zoom Video, Microsoft, Google and Cisco. Increased usage of cloud computing have been beneficial for Amazon Web Services, Google Cloud and Microsoft Azure in the to-be-reported quarter.
Sneak Peek Into Upcoming Tech Stock Earnings Releases
Investors interested in the technology sector are eagerly awaiting the upcoming earnings releases from players like Amphenol APH, Lam Research LRCX, NETGEAR NTGR, Seagate STX, Plexus PLXS, Xilinx XLNX and STMicroelectronics N.V. STM on Apr 22.
Amphenol’s first-quarter results are expected to be negatively impacted by the coronavirus (COVID-19) pandemic.
Nevertheless, diversified end market and the company’s strong portfolio, driven by a plethora of buyouts are expected to have aided the to-be-reported quarter’s results. (Read More: Amphenol to Report Q1 Earnings: What's in the Cards?)
Amphenol Corporation Price and EPS Surprise
Amphenol Corporation price-eps-surprise | Amphenol Corporation Quote
Moreover, this electrical connector provider has the favorable combination of a Zacks Rank #3 (Hold) and an Earnings ESP of +1.09%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Notably, per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 increases the odds of an earnings beat. You can see the complete list of today’s Zacks #1 Rank stocks here.
Meanwhile, Lam Research’s third-quarter fiscal 2020 results are also expected to be affected by the global coronavirus-led economic crisis.
However, Lam Research has been witnessing improvement in the memory market, led by NAND. Increased adoption rates for 3D NAND technology, FinFETs and multi-patterning are expected to have aided its top-line growth. (Read More: Lam Research to Report Q3 Earnings: What's in Store?)
Moreover, this wafer fabrication equipment and services provider has a favorable combination of a Zacks Rank #3 and an Earnings ESP of +0.68%.
Lam Research Corporation Price and EPS Surprise
Lam Research Corporation price-eps-surprise | Lam Research Corporation Quote
NETGEAR has a Zacks Rank of 3 and an Earnings ESP of +35.85%, which increases the chances of a beat.
The LTE and WiFi Internet networking solutions provider’s first-quarter 2020 results are expected to reflect benefits from new product introductions, based on the Wi-Fi 6 standards. Additionally, the coronavirus-induced work-from-home wave necessitates upgrade of existing routers to make home networks suitable for remote working. This heightened demand might have boosted NETGEAR’s top line in the to-be-reported quarter.
NETGEAR, Inc. Price and EPS Surprise
NETGEAR, Inc. price-eps-surprise | NETGEAR, Inc. Quote
Similarly, stay-at-home trend is likely to have spiked sales of Seagate’s gaming SSDs, thereby driving its third-quarter fiscal 2020 top line. Moreover, the company is expected to have gained from an increasing traction for mass storage solutions, primarily boosted by data growth at the edge and in the cloud, across its edge and enterprise end markets.
However, uncertainty over the impact of coronavirus-led supply chain constraints on NAND flash pricing is bothersome. (Read More: Seagate to Report Q3 Earnings: What is in the Cards?)
Moreover, this data storage provider has an unfavorable combination of a Zacks Rank #3 and an Earnings ESP of -1.64%.
Seagate Technology PLC Price and EPS Surprise
Seagate Technology PLC price-eps-surprise | Seagate Technology PLC Quote
Contract manufacturer Plexus’ second-quarter fiscal 2020 results are expected to reflect downsides from workforce disruptions within its supply chain due to the coronavirus woes. Its operations in Malaysia, Scotland, Romania and Illinois took a hit from government restrictions on citizens’ movement and a ramp-down of business activities.
However, global expansion, new program wins and ample manufacturing opportunities hold promise. Plexus has an apt combination of a Zacks Rank #3 and an Earnings ESP of +14.60%.
Plexus Corp. Price and EPS Surprise
Plexus Corp. price-eps-surprise | Plexus Corp. Quote
Xilinx’s combination of a Zacks Rank #3 and an Earnings ESP of -0.16% dims possibilities of a beat. The company’s fourth-quarter fiscal 2020 results are expected to reflect slowdown in 5G rollouts.
However, growing demand for 16-nanometer UltraScale+ family and Zynq platform is expected to have aided top-line growth. Growth in datacenter revenues owing to expanding footprint at multiple hyperscalers is also expected to have been a key contributor in the to-be-reported quarter.
Xilinx, Inc. Price and EPS Surprise
Xilinx, Inc. price-eps-surprise | Xilinx, Inc. Quote
STMicroelectronics’ first-quarter 2020 results are also expected to reflect a setback from the global coronavirus-induced economic crisis that has been aggravating volatility in the semiconductor market. This, in turn, is expected to have offset solid demand for this Zacks Rank #4 (Sell) company’s microcontrollers, sensors, power, analog and other connectivity products. (Read More: What's in Store for STMicroelectronics' Q1 Earnings?)
STMicroelectronics N.V. Price and EPS Surprise
STMicroelectronics N.V. price-eps-surprise | STMicroelectronics N.V. Quote
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Seagate Technology PLC (STX) : Free Stock Analysis Report
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