Semiconductor ETFs In Focus As Industry Earnings Loom

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May 8, 2017 10:06am NASDAQ:SOXX

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From Zacks: The Q1 earnings season is in its last leg with 412 S&P 500 members or 82.4% of the index’s total membership having already reported their quarterly results, as of May 5, according to the latest Zacks Earnings Preview report.


Per the report, approximately 73.3% of the companies posted positive earnings surprises, while 67.7% beat top-line expectations. Earnings of these companies are up 14.2% from the same period last year, while revenues increased 7.3%.

The trend this earnings season indicates that we will finally see back-to-back quarters of earnings growth after five straight quarters of decline. The report projects that earnings for the S&P 500 index will improve 12.7% from the year-ago period, while total revenue will be up 6.2%.

Talking about the technology sector, as per the report, we have Q1 results from 44 of the sector’s 62 operators in the S&P 500 index. Earnings of these companies are up 16.5% year over year, while revenues grew 6.4%.

Further, according to the Earnings Preview report, total earnings of the overall sector are expected to be up 16% on 6.1% higher revenues for the first quarter.

Let’s see what’s in store for these five semiconductor stocks, all of which are expected to release quarterly numbers on May 9.

Microchip Technology, Inc. (MCHPFree Report) , which develops and manufactures specialized semiconductor products, will report fourth-quarter fiscal 2017 results. The stock carries a Zacks Rank #2 (Hold) and has an Earnings ESP of +0.00%.You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

The Zacks Consensus Estimate for the quarter is pegged at 99 cents. Last quarter, the company posted a positive earnings surprise of 23.46%. Notably, Microchip outperformed the Zacks Consensus Estimate thrice in the trailing four quarters, with an average positive surprise of 12.19%. (Read more: Microchip to Post Q4 Earnings: What’s in Store?)

MaxLinear Inc. (MXLFree Report) , which provides radio-frequency analog and mixed signal semiconductor SoC solutions, is slated to report first-quarter 2017 results. The stock carries a Zacks Rank #2 and has an Earnings ESP of +0.00%.

The Zacks Consensus Estimate for the quarter is pegged at 24 cents. Last quarter, the company posted a positive earnings surprise of 19.28%. Notably, MaxLinear outperformed the Zacks Consensus Estimate over the trailing four quarters, with an average positive surprise of 11.71%.

MaxLinear, Inc Price and EPS Surprise

MaxLinear, Inc Price and EPS Surprise | MaxLinear, Inc Quote

NVIDIA Corporation (NVDAFree Report) , which designs, develops and markets a top-to-bottom family of award-winning 3D graphics processors, graphics processing units and related software, will report first-quarter fiscal 2018 results. The stock carries a Zacks Rank #3 (Hold) and has an Earnings ESP of +0.00%.

The Zacks Consensus Estimate for the quarter is pegged at 66 cents. Last quarter, the company posted a positive earnings surprise of 19.28%. Notably, NVIDIA outperformed the Zacks Consensus Estimate in the trailing four quarters, with an average positive surprise of 27.41%. (Read more: NVIDIA to Report Q1 Earnings: What’s in the Cards?)

NVIDIA Corporation Price and EPS Surprise

NVIDIA Corporation Price and EPS Surprise | NVIDIA Corporation Quote

Diodes Incorporated (DIODFree Report) , which is a leading manufacturer and supplier of high-quality discrete and analog semiconductor products, will report first-quarter 2017 results. The stock carries a Zacks Rank #3 and has an Earnings ESP of +0.00%. The Zacks Consensus Estimate for the quarter is pegged at 5 cents. Last quarter, the company posted a negative earnings surprise of 11.76%.

Diodes Incorporated Price and EPS Surprise

Diodes Incorporated Price and EPS Surprise | Diodes Incorporated Quote

Dialog Semiconductor PLC (DLGNFFree Report) , which provides integrated standard and custom mixed-signal integrated circuits, for smartphone, tablet, IoT, LED Solid State Lighting and Smart Home applications, is expected to report first-quarter 2017 results. The stock carries a Zacks Rank #5 (Strong Sell) and has an Earnings ESP of +0.00%. The Zacks Consensus Estimate for the quarter is pegged at 44 cents. Last quarter, the company posted a negative earnings surprise of 4.88%.

DIALOG SEMICON Price and EPS Surprise

DIALOG SEMICON Price and EPS Surprise | DIALOG SEMICON Quote

The iShares PHLX Semiconductor ETF (NASDAQ:SOXX) was trading at $136.57 per share on Monday morning, down $0.35 (-0.26%). Year-to-date, SOXX has gained 11.29%, versus a 7.16% rise in the benchmark S&P 500 index during the same period.

SOXX currently has an ETF Daily News SMART Grade of A (Strong Buy), and is ranked #11 of 54 ETFs in the Technology Equities ETFs category.


This article is brought to you courtesy of Zacks Research.


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