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Electronics Stocks Earnings Early Next Week: AVX & SANM


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The fourth-quarter earnings season for 2016 has started on a robust note, if the reports from industry stalwarts like JPMorgan Chase & Co. JPM and Bank of America BAC are anything to go by. As on Jan 18, we have results from 41 S&P 500 members, which account for 12.5% of the index's total market capitalization, combined. Earnings of these companies are up 11.3% year over year, on 3.9% higher revenues.

Of the companies that have reported results, 70.7% have surpassed earnings estimates, with 46.3% coming ahead of revenue estimates.

On the whole, we anticipate the pace of growth of Q4 earnings to improve steadily. In fact, our latest data projects that the earnings for the S&P 500 companies are now on track to grow 4.7% from the year-ago period on 3.7% higher revenues. This is comparable to an earningsgrowth of 3.8% in Q3, which was the first quarter of growth after five consecutivequarters of earnings contraction. (For more details, read our latest Earnings Outlook  article).

The technology space is one of the sectors expected to chart positive earnings growth this quarter. Its earnings are on track to be up 3.4% in the quarter, on 4.3% higher sales compared with the last year.

Let's have a look at how some electronics companies within the sector, like AVX Corporation AVX and Sanmina Corporation SANM are poised, ahead of their scheduled announcements early next week.

AVX  is a leading worldwide manufacturer and supplier of passive electronic components and related products. The company has a modest earnings surprise history, having beaten estimates just once in the trailing four quarters, for an average positive surprise of 1.4%. In the last reported quarter, the company had missed earnings estimates by 6.3%.

AVX Corp. Price and EPS Surprise

AVX Corp. Price and EPS Surprise | AVX Corp. Quote

Our proven model does not conclusively show that the company is likely to beat on earnings in the to-be-reported quarter. AVX presently has an  Earnings ESP  of 0.00% and a Zacks Rank #3 (Hold). The Zacks Consensus Estimate for the quarter is pegged at 20 cents.

Despite a favorable rank, the company's 0.00% Earnings ESP makes surprise prediction inconclusive. Note that stocks with a Zacks Rank #1 (Strong Buy), or 2 (Buy) or 3 have a significantly higher chance of beating estimates. You can see  the complete list of today's Zacks #1 Rank stocks here .

Sanmina  provides integrated manufacturing solutions, components, products and repair, logistics, and after-market services worldwide.

Sanmina Corp. Price and EPS Surprise

Sanmina Corp. Price and EPS Surprise | Sanmina Corp. Quote

The company has a choppy earnings history, having missed estimates in two of the trailing four quartersfor as many beats, for an average positive surprise of 1.7%. In the last reported quarter, the company had missed earnings estimates by 4.5%.

Our proven model does not conclusively show that Sanminais likely to beat on earnings in the quarter. The company has an Earnings ESP of 0.00% and a Zacks Rank #3. The Zacks Consensus Estimate for the quarter is pegged at 59 cents. The company's zero ESP makes surprise prediction inconclusive. You can uncover the best stocks to buy or sell before they're reported with our  Earnings ESP Filter .

Keep an eye on our full earnings articles to see how these players finally fared in quarter.

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JPMorgan Chase & Co. (JPM): Free Stock Analysis Report

Bank of America Corp. (BAC): Free Stock Analysis Report

AVX Corp. (AVX): Free Stock Analysis Report

Sanmina Corp. (SANM): Free Stock Analysis Report

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Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.





This article appears in: Investing , Business , Earnings , Stocks
Referenced Symbols: JPM , BAC , AVX , SANM



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