Earnings releases are picking up momentum with results from 81 S&P 500 members or 19.9% of the index’s total market capitalization already out (as of Oct 19).

As per the latest Zacks Earnings Trend report, total earnings of these 81 index members are up 3.8% year over year on the back of 3.6% higher revenues.  Beat ratios are impressive with 80.2% beating EPS estimates and 63% coming in ahead of top-line expectations.

However, overall third-quarter earnings for S&P 500 companies are now expected to be down 1% (narrower than earlier estimate of -2.2%) from the year-ago quarter on revenues that are estimated to increase 1.5%.

Earnings for the Technology sector are now anticipated to be down 0.4% (narrower than previous estimate of -1.7%) based on 1% lower revenues. Apple’s guidance, which projects earnings decline of 19.8% on 9.1% lower revenues, will deal a major blow to earnings. Excluding Apple, earnings are estimated to grow 4.5%.

A few semiconductor companies are slated to report their earnings next week. The industry has been struggling for sometime due to a slowdown in China, strengthening dollar and a secular decline in the PC market.

However, Intel’s INTC impressive third-quarter 2016 result is encouraging for the investors. The company is a dominant name in the industry and currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

Here is a sneak peek into two semiconductor companies lined up to report earnings on Oct 24.

Rambus Inc. RMBS is unlikely to beat third-quarter 2016 earnings estimates as it has an unfavorable combination of a Zacks Rank #4 (Sell) and an Earnings ESP of 0.00%.

This is because, as per our proven model, a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 or 3 (Hold) to beat earnings. Simultaneously, we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

Nevertheless, we believe that Rambus is well poised to capitalize on the rising popularity of energy-efficient lighting, LED products in the latest architectural, retail, commercial and residential lighting fixtures.

Additionally, licensing agreements — the result of successful monetization of Rambus’ patents — will continue to remain one of the major recurring revenue sources for the company, in our opinion. (Read More: What to Expect When Rambus Reports Q3 Earnings?)

RAMBUS INC Price and EPS Surprise

RAMBUS INC Price and EPS Surprise | RAMBUS INC Quote

We also note that Rambus results compared favorably with the Zacks Consensus Estimate in the last four quarters, with an average beat of 18.60%.

Chipmaker Intersil Corporation ISIL is also unlikely to beat third-quarter 2016 earnings estimates based on the unfavorable combination of a Zacks Rank #4 and an Earnings ESP of 0.00%.

Intersil is a leader in the design and manufacture of high-performance analog semiconductors.The company will soon be acquired by Japan-based Renesas Electronics in a cash deal worth $3.2 billion.

INTERSIL CORP Price and EPS Surprise

INTERSIL CORP Price and EPS Surprise | INTERSIL CORP Quote

We also note that Intersil results compared favorably with the Zacks Consensus Estimate in the last four quarters, with an average beat of 20.97%.

Confidential from Zacks

Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>

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
 
RAMBUS INC (RMBS): Free Stock Analysis Report
 
INTEL CORP (INTC): Free Stock Analysis Report
 
INTERSIL CORP (ISIL): Free Stock Analysis Report
 
To read this article on Zacks.com click here.