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Electronics Stocks' Earnings Slated on Feb 14: A, GNRC, NVMI

We are past the peak of the earnings season with 358 S&P 500 members, representing 71.6% of the index's total membership, having already reported their results.

As of Feb 10, total earnings of these companies were up 6.1% on a year-over-year basis (69% of the companies beat EPS estimates) while total revenue was up 4.6% (54.7% of the companies beat top-line estimates).

Notably, earnings and revenues are better than the recent quarters and the growth looks poised to reach its highest level in the last two years. Also, total earnings are on track to reach a new quarterly record.

Per our latest Earnings Preview , overall Oct-Dec 2016 quarter's earnings for S&P 500 companies are anticipated to be up 7.5% from the year-ago period on revenues that are estimated to increase 3.9%.

For the technology sector in particular, earnings are anticipated to be up 8.7% year over year based on 4.4% higher revenues. As of Feb 10, 88.6% of the sector's total market cap has already reported their earnings with 71.4% beating on the top line and 71.4% topping the bottom line. Total earnings for these companies were up 8.2% from the year-ago quarter on 6% higher revenues. A notable report from the sector this week is that of Cisco CSCO .

Here we take a look at three electronics companies, which are scheduled to release their quarterly numbers on Feb 14.

Agilent Technologies, Inc.A , the world's premier measurement company and a technology leader in communications, electronics, life sciences and chemical analysis is slated to release its first-quarter fiscal 2017 results.

The company has a Zacks Rank #4 (Sell) and an Earnings ESP of -4.08%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .

Per our proven model, a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat estimates. We don't recommend Sell-rated stocks (Zacks Rank #4 or #5) going into the earnings announcement.

However, Agilent's surprise history has been much impressive, since the company has beaten estimates in all of the last four quarters with an average beat of 9.38%.

Shares of Agilent have underperformed the Zacks Electronics - Testing Equipment industry over the last one year. The stock returned 39%, while the industry gained 47.9%.

Agilent Technologies, Inc. Price and EPS Surprise

Agilent Technologies, Inc. Price and EPS Surprise | Agilent Technologies, Inc. Quote

Likewise, we don't recommend Generac Holdings Inc.GNRC , a leading manufacturer of backup power generation products serving residential, light commercial and industrial markets, which is slated to release fourth-quarter 2016 results.

The company has a Zacks Rank #4 and an Earnings ESP of 0.00% (Most Accurate estimate is in line with the Zacks Consensus Estimate). However, Generac's surprise history has been impressive, since the company has beaten estimates in all of the last four quarters with an average beat of 9.03%.

Shares of Generac have outperformed the Zacks Electronics - Power Generation industry over the last one year. While the industry gained 24.6%, the stock returned 51.3%.

Generac Holdlings Inc. Price and EPS Surprise

Generac Holdlings Inc. Price and EPS Surprise | Generac Holdlings Inc. Quote

We also don't expect Nova Measuring Instruments Ltd.NVMI , a provider of metrology solutions for advanced process control used in semiconductor manufacturing, to post an earnings beat when it reports fourth-quarter 2016 results.

This is because the company's Earnings ESP of 0.00% complicates our surprise prediction in spite of its favorable Zacks Rank #1. You can see the complete list of today's Zacks #1 Rank stocks here .

We note that Nova's results compared favorably with the Zacks Consensus Estimate in the last four quarters, with an average positive surprise of 40.58%.

Also, shares of Nova have outperformed the Zacks Electronics - Measuring Instruments industry over the last one year. While the industry gained 29.2%, the stock soared 65.8%

Nova Measuring Instruments Ltd. Price and EPS Surprise

Nova Measuring Instruments Ltd. Price and EPS Surprise | Nova Measuring Instruments Ltd. Quote

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Cisco Systems, Inc. (CSCO): Free Stock Analysis Report

Nova Measuring Instruments Ltd. (NVMI): Free Stock Analysis Report

Generac Holdlings Inc. (GNRC): Free Stock Analysis Report

Agilent Technologies, Inc. (A): Free Stock Analysis Report

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


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

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