Semiconductor Stocks Earnings on Jul 27: CRUS, XLNX & More

The technology sector is having a mediocre run this season with total earnings of the companies that have reported so far (38% of the sector’s total market capitalization in the S&P 500 index) down 0.2% in spite of 6.3% higher revenues.

However, the beat ratios aren’t all that bad with 75% beating EPS estimates and 81.3% coming in ahead of top-line expectations.

This week, investors will be watching semiconductor stocks closely as a number of them are expected to report their quarterly results. Let’s have a quick look at five such companies - Cirrus Logic Inc. CRUS, Xilinx Inc. XLNX, Silicon Laboratories Inc. SLAB, Applied Micro Circuits Corporation AMCC and AXT, Inc. AXTI - that are slated to report their earnings on Jul 27.

Cirrus Logic Inc. is a premier supplier of high performance analog circuits and advanced mixed-signal chip solutions.

For the quarter, the company has an Earnings ESP of 0.00% and it carries a Zacks Rank #3 (Hold). The Zacks Consensus Estimate for the quarter is pegged at 17 cents.

Last quarter, the company posted a positive earnings surprise of 92.86%. Cirrus Logic has beaten earnings in three of the last four quarters with an average beat of 32.17%.

For Cirrus Logic, continued investments in the audio segment are expected to have a positive impact in the long run. Additionally, synergies from acquisitions and expansion in the LED market continue to drive growth.

However, since, the company generates a significant portion (approximately 70%) of its revenues from Apple, there is always a risk of losing an Apple design contract, which will significantly hurt the company’s financials.

Current global economic downturn and rising competitive pressure also remain headwinds. (Read more: What's in Store for Cirrus Logic  in Q1 Earnings?)

CIRRUS LOGIC Price and EPS Surprise

CIRRUS LOGIC Price and EPS Surprise | CIRRUS LOGIC Quote

Xilinx Inc. designs, develops and markets complete programmable logic solutions, including advanced integrated circuits, software design tools and predefined system functions.

For the quarter, the company has an Earnings ESP of 0.00% and it carries a Zacks Rank #3. The Zacks Consensus Estimate for the quarter is pegged at 55 cents.

Last quarter, the company posted a positive earnings surprise of 3.85%. Xilinx has surpassed estimates in three of the last four quarters with an average beat of 2.99%.

A slowdown in the Chinese economy, along with economic weakness in Europe and the Asia-Pacific, could impact Xilinx’s quarterly results. The company is also facing a new set of challenges related to the acquisition of Altera by Intel. The acquisition has provided Intel a strategic advantage over Xilinx.

Additionally, higher spending on research and development, and selling, general and administrative activities could dent the company’s results.

Nonetheless, the company’s recent decision to tap the fast-growing cloud computing, embedded, industrial IoT and 5G markets is expected to drive its revenues. (Read more: Xilinx Q1 Earnings: Can the Stock Pull a Surprise?)

XILINX INC Price and EPS Surprise

XILINX INC Price and EPS Surprise | XILINX INC Quote

Silicon Laboratories Inc. designs and develops proprietary, analog-intensive, mixed-signal integrated circuits for the rapidly growing communications industry.

For the quarter, this Zacks Rank #3 stock has an Earnings ESP of 0.00% as both the Most Accurate estimate the Zacks Consensus Estimate are pegged at 39 cents.

Last quarter, Silicon Laboratories posted a positive earnings surprise of 57.89%. In fact, the company’s earnings exceeded the Zacks Consensus Estimate in the preceding four quarters, resulting in an average beat of 52.97%.

SILICON LAB INC Price and EPS Surprise

SILICON LAB INC Price and EPS Surprise | SILICON LAB INC Quote

Applied Micro Circuits Corporation is a global leader in network and embedded PowerPC processing, optical transport and storage solutions.

For the quarter, Applied Micro Circuits has an Earnings ESP of 0.00% as both the Most Accurate estimate the Zacks Consensus Estimate are pegged at a loss of 11 cents. It currently carries a Zacks Rank #3.

Last quarter, the company’s earnings were in line with the Zacks Consensus Estimate. The company has exceeded the consensus mark once, matched it twice and missed it once in the preceding four quarters, resulting in a negative average surprise of 0.23%.

APPLD MICRO CIR Price and EPS Surprise

APPLD MICRO CIR Price and EPS Surprise | APPLD MICRO CIR Quote

AXT, Inc.designs, develops, manufactures and distributes high-performance compound semiconductor substrates, and opto-electronic semiconductor devices.

For the quarter, this Zacks Rank #3 stock has an Earnings ESP of 0.00%. The Zacks Consensus Estimate is pegged at 1 cent.

Last quarter, the company posted a positive earnings surprise of 100%. AXT has exceeded the consensus mark thrice and missed once in the preceding four quarters, resulting in a positive average surprise of 50%.

AXT INC Price and EPS Surprise

AXT INC Price and EPS Surprise | AXT INC Quote

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