Back to top

Image: Bigstock

Telecom Stock Earnings on Nov 3: ANET, COMM, QRVO, SWKS

Read MoreHide Full Article

The third-quarter 2016 earnings season has already seen a plethora of releases, with most companies surpassing estimates. Moreover, earnings, which were initially projected to be negative, are now in the green zone. As per our latest Earnings Outlook, third-quarter earnings are expected to rise 2.1% from the same period last year buoyed by 1.4% higher revenues. Given the rosy earnings picture, this earnings season is on track to be the first quarter to see positive earnings growth after five consecutive quarters of decline. Moreover, we expect the trend to continue in the upcoming quarters. However, on the flipside, the year-over-year growth estimates for the fourth quarter have been revised lower to 2.9% as against 4.9% estimated last week.

Telecom Stocks’ Earnings in Focus

The telecom industry, which comprises telecom operators and equipment manufacturers, is projected to witness modest growth in 2016. However, companies operating in this space are anticipated to benefit from continuous technological advancement and adoption of newer business models.

Let’s take a look at four telecom stocks which are scheduled to report their quarterly numbers on Nov 3.

Arista Networks, Inc. (ANET - Free Report) provides cloud networking solutions in datacentre and cloud computing environments. This Zacks Rank #3 (Hold) stock will be posting its third-quarter 2016 results. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Arista Networks has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 59 cents. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.

Meanwhile, according to our proven model, a company needs the right combination of two key ingredients – a positive earnings ESP and a Zacks Rank #3 or better – to increase the odds of an earnings surprise. Thus, Arista Networks is not likely to beat the Zacks Consensus Estimate this quarter.

ARISTA NETWORKS Price and Consensus

 

ARISTA NETWORKS Price and Consensus | ARISTA NETWORKS Quote

CommScope Holding Company, Inc. (COMM - Free Report) , a premier network infrastructure provider, will report third-quarter 2016 results. The company has a combination of a Zacks Rank #3 and an earnings ESP of 0.00% (both the Most Accurate estimate and the Zacks Consensus Estimate are at 69 cents). Though the company’s Zacks Rank #3 increases the predictive power of ESP, its 0.00% ESP makes surprise prediction difficult.

COMMSCOPE HLDG Price and Consensus

 

COMMSCOPE HLDG Price and Consensus | COMMSCOPE HLDG Quote

Qorvo, Inc. (QRVO - Free Report) is a provider of technologies and RF solutions for mobile, infrastructure and aerospace/defence applications. The company is expected to report second-quarter fiscal 2016 financial numbers. Qorvo has a Zacks Rank #3 and an earnings ESP of 0.00% (both Most Accurate estimate and Zacks Consensus Estimate are pegged at $1.19). The combination doesn’t predict an earnings beat for Qorvo in the quarter (Read more: Qorvo Q2 Earnings: What's in the Cards this Time?).

QORVO INC Price and Consensus

 

QORVO INC Price and Consensus | QORVO INC Quote

Skyworks Solutions Inc. (SWKS - Free Report) ,a leading wireless semiconductor company, will report first-quarter fiscal 2017 results. The company has a Zacks Rank #3 and an earnings ESP of 0.00% (both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at $1.33). Skyworks Solutions’ combination doesn’t make it likely to beat the estimates this quarter (read more: Skyworks Solutions Q4 Earnings: What's in Store?).

SKYWORKS SOLUTN Price and Consensus

 

SKYWORKS SOLUTN Price and Consensus | SKYWORKS SOLUTN Quote

Now See Our Private Investment Ideas

While the above ideas are being shared with the public, other trades are hidden from everyone but selected members. Would you like to peek behind the curtain and view them? Starting today, for the next month, you can follow all Zacks' private buys and sells in real time from value to momentum . . . from stocks under $10 to ETF and option moves . . . from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors. Click here for Zacks' secret trades >>

Published in