Semiconductor Stock Earnings Due On Apr 25: TXN, MTSI, CREE
Zacks Investment Research | Apr 24, 2017 05:32AM ET
The first-quarter earnings season is picking up pace, with results from 95 S&P 500 members or 24.9% of the index’s total market capitalization already out (as of April 21).We expect almost 800 companies to report results this week, including 191 S&P 500 members.
Per the latest Texas Instruments Q1 Earnings: Is a Surprise in Store? )
Notably, Texas Instruments’ results surpassed the Zacks Consensus Estimate in all the preceding four quarters. It has an average four-quarter positive surprise of 7.09%.
We also don’t expect MACOM Technology Solutions Holdings Inc. (NASDAQ:MTSI) , a provider of analog semiconductor solutions for use in wireless and wireline applications across the RF, microwave and milli meterwave spectrum, to post an earnings beat when it reports first-quarter 2017 results.
This is because the company has a Zacks Rank #3 but an Earnings ESP of 0.0%. We caution against stocks with a Zacks Rank #4 or 5 (Strong Sell) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
The company’s acquisition of Applied Micro Circuits Corporation will augment MACOM’s reach in enterprise and cloud data centers and is likely to have a positive impact on its earnings in the to-be reported quarter. However, MACOM’s continuing injunction with Infineon Technologies AG over designing, making, developing, selling or marketing Gallium Nitride on Silicon is likely to affect the upcoming results.
Notably, MACOM’s results surpassed the Zacks Consensus Estimate in two out of the preceding four quarters. It has an average four-quarter positive surprise of 4.05%.
MACOM Technology Solutions Holdings, Inc. Price and EPS Surprise
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Recently, Cree reached a license agreement with Ledvance, a leading manufacturer of innovative lighting products. The deal will help Cree to not only receive the ongoing royalty fees from Ledvance but will also gain the license to Ledvance’s patent portfolio without having to pay any royalty fees to the latter. Moreover, the Cree owned Wolfspeed collaboration with Ford Motor Company (NYSE:F) to develop modules could boost the efficiency of electric vehicles by up to 10%.
While these developments augur well for the company, increasing competition in the LED space, an imbalance in demand and supply of manufactured products, and a sluggish global scenario could affect its results in the to-be-reported quarter.
Notably, Cree’s results surpassed the Zacks Consensus Estimate in two out of the preceding four quarters, with an average positive surprise of 12.05%.
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Cree, Inc. Price and EPS Surprise
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