Nike, Micron Technology and Apple are part of Zacks Earnings Preview – Yahoo Finance

For Immediate Release

Chicago, IL – July 1, 2019 – Zacks.com releases the list of companies likely to issue earnings surprises. This week’s list includes Nike NKE, Micron Technology MU and Apple AAPL.

Handicapping Q2 Earnings Season

We still have a couple of weeks to go before the Q2 earnings season really gets underway, but the reporting cycle has actually gotten underway already. We have a light reporting docket this week because of the July 4th holiday, but results from 20 S&P 500 members are out already.

All of these initial releases from the likes of Nike, Micron Technology and others are for these companies’ fiscal quarters ending in May, which we count as part of the June-quarter tally. The fact is that by the time the big banks come around to report June-quarter results on July 16th, we will have seen such Q2 results from almost two dozen S&P 500 members already.

The earnings growth picture is not expected to change much from the flat growth reading in the first quarter. This trend of flat to negative growth is expected to persist through the September quarter, with current consensus estimates looking for positive growth resuming in the last quarter of the year.  But Q4 is still far from away and a lot can happen between now and then.

For Q2, total earnings for the S&P 500 index will decline -2.9% from the same period last year on +4.3% higher revenues, with 9 of the 16 Zacks sectors expected to have negative earnings growth, including the Tech sector.

Read More   Edited Transcript of PS.OQ earnings conference call or presentation 12-Feb-20 9:30pm GMT - Yahoo Finance

The overall tone and substance of management guidance during the last earnings season was on the negative side. This reflected a combination of slowing economic growth, particularly beyond the U.S., and rising input expenses. As a result, analysts steadily lowered their estimates for 2019 Q2.

The Tech Sector Drag

Growth is expected to be in negative territory for 8 of the 16 Zacks sectors, with Basic Materials, Aerospace, Technology, Conglomerates and Construction sectors expected to experience double-digit declines.

It is the weak Tech growth that is dragging the aggregate Q2 earnings growth rate for the S&P 500 index the most. The Tech sector is the biggest earnings contributor in the S&P 500 index, bringing in 22.6% of the index’s total earnings in forward 4-quarter period. Excluding the Tech sector’s drag, total earnings growth for the remainder of the index would be down only -0.6%. 

Driving the Tech sector’s weak earnings growth expectation for the quarter is Apple and the broader semiconductor space. For Apple, June quarter earnings are expected to be down -15.4% on +0.1% higher revenues. The semiconductors industry has been struggling for the last few quarters and this trend is expected to continue in Q2 as well.

The expectation is that the semiconductor industry’s earnings declines bottom in Q2 and start improving from Q3 onwards.

Join us on Facebook:  https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Read More   Is Now The Time To Put Silicon Laboratories (NASDAQ:SLAB) On Your Watchlist? - Yahoo Finance

Media Contact
Zacks Investment Research

800-767-3771 ext. 9339



Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks “Terms and Conditions of Service” disclaimer. www.zacks.com/disclaimer.

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.


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
Apple Inc. (AAPL) : Free Stock Analysis Report
NIKE, Inc. (NKE) : Free Stock Analysis Report
Micron Technology, Inc. (MU) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research

Read More   Hudson Technologies, Inc. (HDSN) CEO Kevin Zugibe on Q4 2018 Results - Earnings Call Transcript - Seeking Alpha


Leave a Reply

This website uses cookies. By continuing to use this site, you accept our use of cookies.