Semiconductor Stocks' Oct 29 Earnings Roster: AMD, MXIM & More

Semiconductor stocks’ quarterly releases are expected to reflect the negative impacts of declining memory prices (both DRAM and NAND), lower chip demand from smartphone OEMs and imposition of tariffs owing to the U.S.-China trade war.

Additionally, suspension of shipments to Huawei owing to the export ban imposed by the U.S. government is likely to have negatively impacted these stocks in third-quarter 2019.

Moreover, semiconductor industry, which considered the primary pillar of growth for the technology sector, is expected to have hurt the performance of the sector in the third quarter thanks to ongoing softness.

Per the latest Earnings Preview, tech sector’s third-quarter earnings are anticipated to be down 8.7% from the same period last year.

However, semiconductor space is likely to have benefited from strengthening data center market, improving trend in PC shipments, emergence of 5G and rapid adoption of IoT.

Q3 Performance of Semiconductor Stocks so Far

Texas Instruments (NASDAQ:TXN) , Intel (NASDAQ:INTC) , STMicroelectronics (NYSE:STM) and Xilinx (NASDAQ:XLNX) , which are some of the notable semiconductor stocks, have already released their quarterly results.

Texas Instruments reported unimpressive third-quarter results wherein both earnings and revenues have declined from the year-ago quarter. Weakening end-market conditions, macro-economic headwinds and U.S.-China trade tensions impacted the results.

Although Xilinx reported strong second-quarter fiscal 2020 results, which reflected its growing momentum across datacenter business and solid 5G product demand, the company provided disappointing guidance for the third quarter thanks to Huawei ban.

Meanwhile, Intel surpassed third-quarter estimates for both earnings and revenues. It witnessed strong momentum across data center space, IoT segment and commercial PC business.

Further, STMicroelectronics’ third-quarter both earnings and revenues surpassed the estimates. The performance can be attributed to improving market conditions, and growing adoption of imaging sensors, analog products and secure microcontrollers.

In this backdrop, let’s take a sneak peek into four semiconductor companies that are scheduled to report their quarterly results on Oct 29.

Advanced Micro Devices’ (NASDAQ:AMD) third-quarter 2019 results are anticipated to reflect strengthening GPU portfolio with new capabilities and continued efforts toward expansion of processor portfolio. Further, increasing adoption of AI techniques and ML tools in industries like gaming, automotive and blockchain are expected to have boosted the adoption rate of the company’s EPYC server processors in the third quarter. (Read more: AMD Gears Up for Q3 Earnings: What's in Store for This Stock?)

Notably, the Zacks Consensus Estimate for earnings has been stable over the past 30 days at 18 cents.

AMD is likely to deliver a positive earnings surprise. This is because per the Zacks model, a company needs the right combination of two key ingredients — a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — to increase the odds of a beat.

AMD has an Earnings ESP of +6.54% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Maxim Integrated Products’ (NASDAQ:MXIM) first-quarter fiscal 2020 results are expected to have benefited from the positive impact of strengthening content in driver assistance space.

Further, growing demand for 100G laser drivers and modules is expected to have aided the company’s performance in the communications and data center market in the fiscal first quarter. Additionally, well-performing gaming, peripherals, wearables and tablet business of Maxim is likely to have contributed to the first-quarter performance.

Notably, the Zacks Consensus Estimate for earnings has been stable over the past 30 days at 49 cents.

However, sluggish auto production, smartphone market weakness and Huawei ban are anticipated to have negatively impacted the first-quarter results.

Maxim 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.

Vishay Intertechnology’s (NYSE:VSH) product portfolio strength is likely to get reflected in the third-quarter 2019 results. Growing opportunities for capacitors in the areas of power transmission and electro cars are expected to have benefited the third-quarter top line.

Additionally, Vishay’s third-quarter performance is likely to reflect global cost reduction and management rejuvenation programs.

Notably, the Zacks Consensus Estimate for earnings has been stable over the past 30 days at 22 cents.

However, weakening demand from distributors thanks to high level of inventories in the supply chain is anticipated to have affected the performance of its product lines during the third quarter.

This Zacks Rank #3 stock has an Earnings ESP of 0.00%.

Inphi’s (NYSE:IPHI) third-quarter 2019 results are likely to reflect the positive impact of its new technology and product development investments. These are expected to have aided in design wins during the to-be-reported quarter.

However, Huawei ban and trade uncertainties are expected to are anticipated to get reflected in the third-quarter results.

Notably, the Zacks Consensus Estimate for earnings has been stable over the past 30 days at 37 cents.

Inphi has an Earnings ESP of 0.00% and a Zacks Rank #2.

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