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Velodyne (VLDR) to Report Q3 Earnings: What's in Store?

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Velodyne Lidar is set to release third-quarter 2020 results on Nov 5.

Markedly, this would be Velodyne’s first earnings call as a publicly traded company. On Sep 30, it completed merger with Graf Industrial Corp., a subsidiary of a publicly traded special purpose acquisition company and began trading on Nasdaq under the ticker VLDR.

The Zacks Consensus Estimate for third-quarter revenues is currently pegged at $30.2 million. Moreover, the consensus mark has improved from a loss of 30 cents to 18 cents over the past 30 days.

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

 

Factors to Note

Velodyne is a leading provider of lidar technology used in Advanced Driver Assistance Systems and autonomous vehicles. The company’s third-quarter top-line growth is expected to reflect strong demand for its smart vision solutions.

Per Velodyne’s estimates, market opportunity for its lidar technology will be $11.9 billion by 2022, 60% of which will be in automobile applications. Increasing awareness about safety among vehicle users and increasing number of regulatory guidelines about safety norms is driving the need for lidar technology.

Velodyne’s lidar technology is known for its high precision and accurate real-time detection features. This has also helped it to expand its customer base that not only includes automobile manufacturers like General Motors (GM - Free Report) and Ford but also technology companies like Google and Yandex.

Moreover, increasing deployment of lidar technology in non-automotive uses including autonomous mobile robots, UAVs, last-mile delivery, agriculture, advanced security systems and smart city initiatives is a key growth catalyst.

Notably, last-mile and contactless deliveries have gained significant importance amid the global coronavirus outbreak. This is also expected to have provided a boost to Velodyne’s smart vision shipment volume in the to-be-reported quarter.

However, increasing investments related to the development of cost-effective lidar technology is expected to have hurt profitability in third quarter.

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.

Velodyne 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 couple of companies worth considering as our model shows that these have the right combination of elements to beat on earnings this reporting cycle:

Advanced Energy Industries (AEIS - Free Report) has an Earnings ESP of +1.03% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

NVIDIA (NVDA - Free Report) has an Earnings ESP of +1.75% and is #2 Ranked.

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