Semiconductors Stocks' Nov 1 Earnings Roster: NXPI, ON & More
Here is a sneak peek at how four semiconductor stocks, NXPI, ON, CRUS and RMBS, are expected to fare in their quarterly results slated to release on Nov 1.
Semiconductor stocks’ upcoming results are anticipated to reflect gains from the ongoing remote-working trend, which has turned out to be a boon.
The trend is anticipated to have continued aiding chip companies on the heels of the rising demand for desktops, notebooks and enterprise laptops.
Per IDC data, PC shipments in third-quarter 2021 improved 3.9% year over year to 86.7 million units. The demand for notebooks in third-quarter 2021 remained noteworthy.
The global shortage of chip supply has opened up opportunities for semiconductor companies, which, in turn, is expected to get reflected in their upcoming results.
Per The Semiconductor Industry Association data, the global semiconductor industry’s sales were $45.4 billion in July 2021, up 29% from that reported in July 2020. In August 2021, sales were $47.2 billion, up 29.7% from that reported in August 2020.
In addition to these, the growing proliferation of advanced technologies, including AI, ML, AR/VR, cloud computing, IoT, quantum computing, and blockchain, is likely to have continued bolstering the semiconductor demand.
The robust demand for server solid state drives for data centers, which has been driving growth in the NAND market, is expected to have benefited the semiconductor stocks in the third quarter.
The rapid adoption of autonomous vehicles, advanced driver assisted systems, gaming, wearables, drones and VR/AR devices, which has been continuously fueling growth in the semiconductor industry, is expected to have been a major positive.
Strong growth in the automotive and industrial end-markets is likely to have benefited semiconductor companies in the quarter under review.
Solid momentum in smartphone processors is anticipated to have acted as a tailwind for the companies in the quarter under discussion.
However, uncertainties related to the pandemic are expected to have been concerning for semiconductor stocks.
Sneak Peek on a Few Upcoming Releases
Let’s see how the following semiconductor stocks are poised ahead of their quarterly results, which are slated to be reported on Nov 1.
NXP Semiconductors’ NXPI third-quarter 2021 performance is expected to have gained from the continuous increase in wafer supply. The growing momentum across radar, advanced driver assistance systems, battery management and digital clusters businesses is anticipated to have benefited the company in the quarter under review.
Strength in its Trimension Ultra-Wideband platform is anticipated to have been another positive in the soon-to-be-reported quarter. However, The coronavirus-driven global economic crisis, which has been raising volatility in the semiconductor market, is expected to have acted as a headwind. (Read more: NXP to Report Q3 Earnings: What's in the Offing?)
Our proven model does not conclusively predict an earnings beat for NXP Semiconductors this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Notably, NXP Semiconductors has an Earnings ESP of 0.00% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for the company’s third-quarter earnings has been unchanged at $2.74 per share over the past 30 days.
NXP Semiconductors N.V. Price and EPS Surprise
ON Semiconductor’s ON third-quarter 2021 results are likely to reflect benefits from strength across industrial, computing, consumer and automotive end-markets. The growing momentum across electric vehicle manufacturers is expected to have contributed well.
The rapid deployment of 5G, strong demand for power modules, and continued strength in client and server business are expected to have aided the company’s third-quarter performance. Solid demand for its power and sensing products is anticipated to have driven top-line growth further. (Read more: onsemi to Report Q3 Earnings: What's in the Cards?)
Notably, ON Semiconductor has an Earnings ESP of -4.38% and a Zacks Rank #3 at present.
The Zacks Consensus Estimate for the company’s third-quarter earnings has moved downward by 1.3% to 74 cents per share over the past 30 days.
ON Semiconductor Corporation Price and EPS Surprise
Cirrus Logic’s CRUS second-quarter fiscal 2022 results are expected to reflect gains from the growing demand for its audio and haptic solutions. Strengthening customer engagement across its portfolio is expected to have contributed well.
An increase in the penetration of its audio solutions in smartphones is expected to have been a positive. The company is expected to have benefited from growth prospects in voice biometrics and closed-loop controllers. However, a volatile macroeconomic environment is anticipated to have been an overhang for the company.
Notably, Cirrus Logic has an Earnings ESP of 0.00% and a Zacks Rank #3 at present.
The Zacks Consensus Estimate for the company’s fiscal second-quarter earnings has been unchanged at $1.63 per share over the past 30 days.
Cirrus Logic, Inc. Price and EPS Surprise
Rambus’ RMBS third-quarter 2021 results are expected to reflect gains from increased chip demand from PC manufacturers and data-center operators due to the current work-from-home and learn-from-home trends amid the COVID-19 pandemic.
However, increasing spending on product development amid stiff competition in the security market has likely impacted profitability.
Notably, Rambus has an Earnings ESP of 0.00% and a Zacks Rank #3 at present.
The Zacks Consensus Estimate for the company’s third-quarter earnings has been unchanged at 33 cents per share over the past 30 days.
Tech IPOs With Massive Profit Potential: Last years top IPOs surged as much as 299% within the first two months. With record amounts of cash flooding into IPOs and a record-setting stock market, this year could be even more lucrative.See Zacks’ Hottest Tech IPOs Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Rambus, Inc. (RMBS): Free Stock Analysis Report
NXP Semiconductors N.V. (NXPI): Free Stock Analysis Report
Cirrus Logic, Inc. (CRUS): Free Stock Analysis Report
ON Semiconductor Corporation (ON): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research