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Inseego (INSG) to Report Q2 Earnings: What's in the Cards?

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Inseego (INSG - Free Report) is set to report second-quarter 2020 results on Aug 5.

For the quarter, the company expects revenues between $75 million and $85 million. The Zacks Consensus Estimate for revenues is currently pegged at $79.6 million, which suggests an increase of 42.5% from the year-ago quarter’s reported figure.

For the quarter under review, the Zacks Consensus Estimate for loss has been steady at 2 cents per share in the past 30 days, wider than the loss of 3 cents per share reported in the year-ago quarter.

Notably, in the trailing four quarters, the company’s earnings missed the Zacks Consensus Estimate in three quarters but beat the same once. It has a trailing four-quarter negative earnings surprise of 56.3%, on average.

Inseego Corp. Price and EPS Surprise

Inseego Corp. Price and EPS Surprise

Inseego Corp. price-eps-surprise | Inseego Corp. Quote

Let’s see how things have shaped up prior to this announcement.

Key Factors to Consider

Inseego’s second-quarter results are expected to have benefited from increased demand for its 4G mobile broadband solutions due to coronavirus-led work-from-home trend and growing traction of its 5G-based solutions.

The ongoing wave of remote working has led to a surge in demand for mobile hotspots. Markedly, the company announced on April 1 that it is expanding production capacity of its 4G and 5G MiFi mobile hotspots and other wireless-connectivity devices.

Moreover, accelerated bandwidth consumption has demonstrated limitations of existing 4G VOLTE networks and the need for 5G, which is two times faster than previous generations.

Per Inseego, 88 operators have deployed 5G technology (commercial and pre-commercial networks) and 380 operators are investing in 5G networks. The expanding addressable market bodes well for the company, given its portfolio strength. These factors are expected to have benefited Inseego’s top-line growth in the to-be-reported quarter.

Moreover, the company’s Skyus line of industrial IoT products has been gaining traction due to expansion in the software-defined wide area network market.

What Our Model Indicates

Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.

Inseego has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are a few companies worth considering as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:

AMETEK (AME - Free Report) has an Earnings ESP of +3.96% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Alteryx has an Earnings ESP of +16.92% and a Zacks Rank #3.

The Trade Desk (TTD - Free Report) has an Earnings ESP of +65.06% and is Zacks #3 Ranked. 

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