Electronics Stocks Earnings Early Next Week: AVX & SANM
The fourth-quarter earnings season for 2016 has started on a robust note, if the reports from industry stalwarts like JPMorgan Chase & Co. JPM and Bank of America BAC are anything to go by. As on Jan 18, we have results from 41 S&P 500 members, which account for 12.5% of the index’s total market capitalization, combined. Earnings of these companies are up 11.3% year over year, on 3.9% higher revenues.
Of the companies that have reported results, 70.7% have surpassed earnings estimates, with 46.3% coming ahead of revenue estimates.
On the whole, we anticipate the pace of growth of Q4 earnings to improve steadily. In fact, our latest data projects that the earnings for the S&P 500 companies are now on track to grow 4.7% from the year-ago period on 3.7% higher revenues. This is comparable to an earningsgrowth of 3.8% in Q3, which was the first quarter of growth after five consecutivequarters of earnings contraction. (For more details, read our latest Earnings Outlook article).
The technology space is one of the sectors expected to chart positive earnings growth this quarter. Its earnings are on track to be up 3.4% in the quarter, on 4.3% higher sales compared with the last year.
Let’s have a look at how some electronics companies within the sector, like AVX Corporation AVX and Sanmina Corporation SANM are poised, ahead of their scheduled announcements early next week.
AVX is a leading worldwide manufacturer and supplier of passive electronic components and related products. The company has a modest earnings surprise history, having beaten estimates just once in the trailing four quarters, for an average positive surprise of 1.4%. In the last reported quarter, the company had missed earnings estimates by 6.3%.
AVX Corp. Price and EPS Surprise
AVX Corp. Price and EPS Surprise | AVX Corp. Quote
Our proven model does not conclusively show that the company is likely to beat on earnings in the to-be-reported quarter. AVX presently has an Earnings ESP of 0.00% and a Zacks Rank #3 (Hold). The Zacks Consensus Estimate for the quarter is pegged at 20 cents.
Despite a favorable rank, the company’s 0.00% Earnings ESP makes surprise prediction inconclusive. Note that stocks with a Zacks Rank #1 (Strong Buy), or 2 (Buy) or 3 have a significantly higher chance of beating estimates. You can see the complete list of today’s Zacks #1 Rank stocks here.
Sanmina provides integrated manufacturing solutions, components, products and repair, logistics, and after-market services worldwide.
Sanmina Corp. Price and EPS Surprise
Sanmina Corp. Price and EPS Surprise | Sanmina Corp. Quote
The company has a choppy earnings history, having missed estimates in two of the trailing four quartersfor as many beats, for an average positive surprise of 1.7%. In the last reported quarter, the company had missed earnings estimates by 4.5%.
Our proven model does not conclusively show that Sanminais likely to beat on earnings in the quarter. The company has an Earnings ESP of 0.00% and a Zacks Rank #3. The Zacks Consensus Estimate for the quarter is pegged at 59 cents. The company’s zero ESP makes surprise prediction inconclusive. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Keep an eye on our full earnings articles to see how these players finally fared in quarter.
Now See Our Private Investment Ideas
While the above ideas are being shared with the public, other trades are hidden from everyone but selected members. Would you like to peek behind the curtain and view them? Starting today, for the next month, you can follow all Zacks' private buys and sells in real time from value to momentum . . . from stocks under $10 to ETF and option moves . . . from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors. Click here for Zacks' secret trades >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
JPMorgan Chase & Co. (JPM): Free Stock Analysis Report
Bank of America Corp. (BAC): Free Stock Analysis Report
AVX Corp. (AVX): Free Stock Analysis Report
Sanmina Corp. (SANM): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
