Electronics Stock Q2 Earnings Due On Jul 31: ROG, GDI & More

The Electronic industry has been riding on the ongoing technical advancement in Internet infrastructure and the telecommunication sector on a worldwide basis. Moreover, the industry has been benefiting from the growing proliferation of electronic devices in every major sector, namely consumer, automobile, industrial, aerospace & defense, and communications.

Rising demand in the consumer sector for connected appliances has been acting as a key growth catalyst. Smart TVs with 8K resolution, bigger screens, higher capacity smartphones with advanced megapixel cameras, foldable smartphones, dual-screen laptops, high graphics performance gaming PCs and laptops, smart headphones, smart speakers, smart wearables and home security solutions reflect the evolution of consumer electronics.

Moreover, robust implementation of advanced driver assisted systems (ADAS) in autonomous cars, rapid adoption of cloud, IoT, wearables, drones, and virtual reality/augmented reality (VR/AR) devices are fueling growth of digitization in electronics manufacturing.

Also, increasing usage of tracking meters and navigation devices in smart and connected cars is driving growth of the industry participants. Moreover, strong demand for testing solutions in satellites, radar and surveillance system is a key catalyst.

All these factors are likely to benefit the Electronic industry’s upcoming quarterly results.

Our research shows that when a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) stock is combined with a positive Earnings ESP, the chance of beating earnings estimates is high. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Let’s see what’s in store for the following five electronics stocks that are slated to report second-quarter results on Jul 31.

Rogers Corporation’s (NYSE:ROG) strength in Advanced Connectivity and Advanced Mobility applications should drive growth in the to-be-reported quarter. Also, demand for EV/HEV applications could act as a tailwind.

Notably, the company surpassed earnings estimates in the trailing three quarters, with an average positive surprise of 16.77%.

Rogers Corp. has a Zacks Rank #3 and an Earnings ESP of 0.00%, which does not indicate a likely positive surprise in the quarter to be reported.

Rogers Corporation Price and EPS Surprise

Gardner Denver Holdings, Inc.’s (NYSE:GDI) remarkable progress on strategic priorities, strength in the industrial segment and solid execution should drive growth in the to-be-reported quarter. However, forex headwinds, tariffs and concerns related to the European market could impact the upcoming quarterly results.

Notably, the company outpaced earnings estimates in the trailing four quarters, with an average of 7.18%.

Gardner Denver has a Zacks Rank #4 and an Earnings ESP of 0.00%, which does not indicate a likely positive earnings surprise in the quarter to be reported. You can see the complete list of today’s Zacks #1 Rank stocks here.

Gardner Denver Holdings, Inc. Price and EPS Surprise

Garmin Ltd (NASDAQ:GRMN).’s (GRMN) focus on continued innovation, diversification and market expansion to explore growth opportunities in all business segments will help drive top-line growth. However, macroeconomic challenges remain part of the operating environment.

Notably, the company has a record of surpassing earnings estimates in the trailing four quarters, with the average being 19.76%.

Currently, Garmin has a Zacks Rank #3 and an Earnings ESP of +0.00%, which does not indicate a likely positive surprise. (Read: Garmin to Report Q2 Earnings: What's in the Offing?)

Garmin Ltd. Price and EPS Surprise

Trimble Inc.’s (TRMB) portfolio strength remains a key growth driver. Strong performance of transportation and, buildings and infrastructures segments should drive growth in the to-be-reported quarter.

Notably, the company beat earnings estimates in the trailing three quarters, with the average being 5.55%.

Trimble has a Zacks Rank #4 and an Earnings ESP of 0.00%, which does not indicate a likely positive surprise in the quarter to be reported.

Littelfuse, Inc. (NASDAQ:LFUS) outpaced earnings estimates in the trailing three quarters, delivering an average positive surprise of 1.61%. However, it has an Earnings ESP of -1.36% and carries a Zacks Rank #5 (Strong Sell), which does not indicate a likely positive surprise.

For the second quarter, management expects net sales in the range of $409-$421 million. Adjusted earnings per share are expected within $2.00-$2.14, down 25% year over year due to unfavorable foreign exchange.

We caution against stocks with a Zacks Rank #4 (Sell) or 5 going into the earnings announcement, especially when the company is seeing negative estimate revisions.

Littelfuse, Inc. Price and EPS Surprise

Today's Best Stocks from Zacks

Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.

This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.

See their latest picks free >>