We are nearing the end of the second-quarter earnings season with results already out from 433 S&P 500 members or 87.7% of the index’s total membership.
As of Aug 5, 88.1% of the technology sector stocks have reported their quarterly numbers. The sector has so far reported better-than-expected results. However, total earnings were down 0.8% on 2.4% higher revenues, with 83% beating on earnings and 74.5% beating revenue estimates.
While growth in the sector has been led by the Software/Services industry with Alphabet (NASDAQ:GOOGL) reporting 44.3% earnings growth on 22.1% higher revenues, and Facebook (NASDAQ:FB) reporting 158% earnings growth on 59.2% higher revenues, the hardware industry has been a drag, with Apple (NASDAQ:AAPL) reporting an earnings decline of 27% on 14.6% lower revenues.
This week, investors will be watching semiconductor stocks closely as some of them are expected to come up with their quarterly results. Let’s take a look at two semiconductor stocks – Diodes Incorporated (NASDAQ:DIOD) and Lattice Semiconductor Corporation (NASDAQ:LSCC) – which are scheduled to release quarterly numbers on Aug 9.
Diodes Incorporated recorded a positive earnings surprise of 50.0% in the last quarter. The company outperformed the Zacks Consensus Estimate in three of the last four quarters, with the average negative surprise of 33.60%.
Our proven model does not conclusively show that Diodes Incorporated is likely to beat the Zacks Consensus Estimate this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) for this to happen. Unfortunately, that is not the case here as elaborated below:
For the second quarter, Diodes Incorporated has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 21 cents. Meanwhile, the company has a Zacks Rank #3, which increases the predictive power of ESP. However, a 0.00% ESP makes surprise prediction difficult.
Lattice Semiconductor Corporation recorded in-line results in the last quarter. Notably, the company outperformed the Zacks Consensus Estimate just once in the last four quarters, with an average negative surprise of 280.56%.
For the second quarter, Lattice Semiconductor has an Earnings ESP of 0.00% as the Most Accurate estimate and the Zacks Consensus Estimate are both pegged at a loss of 2 cents. It currently carries a Zacks Rank #3. So, we can’t say whether the company will beat estimates this time around.
LATTICE SEMICON Price and EPS Surprise
LATTICE SEMICON Price and EPS Surprise | LATTICE SEMICON Quote
Stay tuned! Check back on our full write-up on earnings releases of these stocks.
LATTICE SEMICON (LSCC): Free Stock Analysis Report
DIODES INC (DIOD): Free Stock Analysis Report
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