Electronics stocks are expected to have continued gaining from the pandemic-led work-from-home and learn-from-home trends in third-quarter 2021.
The trends, which have led to the growing proliferation of laptops, notebooks, office equipment and network peripherals, have turned out to be boons for electronics companies.
Electronics stocks’ upcoming quarterly results are expected to reflect the impacts of the growing adoption of AI, Machine Learning (ML), Augmented Reality (AR)/Virtual Reality (VR) devices, and cloud computing.
The increasing demand for data centers to ensure an efficient remote-working environment is expected to have benefited the stocks in the quarter under review.
Technical advancements in Internet infrastructure and accelerated deployment of 5G technology worldwide are also expected to have benefited industry participants in the to-be-reported quarter.
IoT-supported industrial automation and the rising demand for connected appliances are expected to have acted as tailwinds for electronic companies.
The increasing use of electronic components in smart cars and autonomous vehicles is likely to have benefited electronics companies in the quarter under review.
Solid demand in the consumer sector for connected appliances such as smart TVs, high-end smartphones, and AI-backed smart speakers is anticipated to have been a tailwind.
However, uncertainties related to the ongoing pandemic are likely to have been concerning for the industry participants in the quarter under discussion.
Sneak Peek on a Few Upcoming Releases
Let’s see how the following electronics stocks are poised ahead of their quarterly results, which are slated to be reported on Oct 27.
KLA Corporation’s KLAC first-quarter fiscal 2022 results are expected to reflect gains from a solid momentum in wafer fabrication equipment. Strength in optical pattern wafer inspection is anticipated to have persistently driven the company’s semiconductor process control segment in the quarter under review.
Growing investments in foundry, logic and memory are anticipated to have contributed well to the semiconductor process control systems business in the quarter under discussion. Also, the impacts of increasing investments in the advanced packaging market for boosting the adoption of the latest technologies are anticipated to get reflected in the upcoming quarterly results. (Read more: KLA Corp to Report Q1 Earnings: What’s in Store?)
Our proven model conclusively predicts an earnings beat for KLA Corp 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Notably, KLA Corp has an Earnings ESP of +0.41% and a Zacks Rank #3.
The Zacks Consensus Estimate for the company’s fiscal first-quarter earnings has been unchanged at $4.45 per share over the past 30 days.
KLA Corporation Price and EPS Surprise
KLA Corporation price-eps-surprise | KLA Corporation Quote
TE Connectivity’s TEL fourth-quarter fiscal 2021 results are anticipated to reflect benefits from its solid execution of strategies, especially cost-reduction and footprint consolidation initiatives. The growing momentum across the factory-automation and renewable