Were semiconductor stocks earnings impacted by supply complications?

Semiconductor stocks have been rallying most of this year and hit new hikes. The pandemic has bolstered demand for chips by leaps and bounds, leading to the worst global shortage in many years.

iShares Semiconductor and Vectors Semiconductor have benefited from the crisis and reaped gains of about 4% over the past three months while First Trust Nasdaq Semiconductor ETF added 3%. This solid uptrend might continue in the weeks ahead going into the earnings season.

A number of major players in this specialized market segment will report earnings during the upcoming days. As Q3 earnings unfold, SOXX is largely concentrated on five firms with a combined share of 31.6% followed by 31.2% for SMH and 23.2% for FTXL.

Texas Instruments will announce earnings on 26 October, after market close. It has a Zacks Rank second and an Earnings ESP of +9.22%. The stock saw positive earnings estimate revision by two cents over the past 30 days for the to-be reported quarter.

Estimates are raised right before earnings, with the most up-to-date information possible, providing a good indicator for the stock. The earnings surprise track over the last four quarters has been good, with the beat being 20.25%, on average.