We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Telecom Stocks Earnings to Watch on Feb 3: NOK, VSAT & VIAV
Read MoreHide Full Article
The Technology sector, of which Telecom is an integral part, is likely to report modest earnings for the October-December quarter compared with other sectors. Despite supply-chain disruptions due to the worldwide shortage of semiconductors affecting telecom companies’ operations, the sector seems to have been well-placed with recurring revenues on digital acceleration. Better-than-expected sector revenues with a faster pace of 5G deployment and rapid proliferation of IoT devices amid the work-from-home trend instill optimism.
The passage of the $1.2 trillion infrastructure bill in the House further buoyed the growth momentum. The multi-billion infrastructure bill includes a $65 billion provision to significantly expand broadband access to Americans as the administration aims to fortify its technological prowess to thwart the dominance of countries like China. The plan envisions reaching the underserved areas of the country and prioritizing support for broadband networks affiliated with local governments, nonprofit organizations and cooperatives to encourage strong competition with privately-owned companies. The plan has also earmarked funds for the tribal areas that lack access to high-speed Internet to bridge the digital divide. It is likely to lower the prices for Internet services by requiring funding recipients to offer a low-cost affordable plan and encourage price transparency.
Though the sector appears to have overcome the pandemic-induced adversities through the gradual resumption of business activities, profitability has largely been compromised. Various trade restrictions on the grounds of national security concerns have eroded sector margins, while higher infrastructure investments for 5G networks have increased operating costs. Upfront capital investments for 5G have proven to be substantially higher than previous generations of wireless deployments due to network density requirements, hurting the return on capital.
While technological progress has changed the way consumers communicate, resulting in higher home data consumption and video streaming, intense competition and commoditization of services have limited the chances for companies to benefit from these trends.
Per the latest Earnings Trends, total earnings for the Technology sector for the quarter ended December 2021 are expected to be up 10.3% on 9.3% year-over-year higher revenues compared with the actuals of 36.1% and 17.2% in third-quarter 2021.
Let’s take a look at three leading Telecom stocks that are slated to report quarterly results on Feb 3.
Nokia Corporation (NOK - Free Report) is scheduled to report fourth-quarter 2021 results before the opening bell. The Finland-based telecom equipment vendor is expected to have recorded year-over-year lower revenues due to supply-chain constraints and headwinds in the Mobile Networks segment in North America.
During the quarter, Nokia was selected by ARC Solutions to provide a high-capacity data center interconnection solution in the Middle East. ARC, a joint venture between UAE’s du and Bahrain’s Batelco, provides networking solutions that simplify connecting and optimizing applications and services across the Middle East. Nokia partnered with Teletalk Bangladesh to deploy the first 5G network in the South Asian country. The initiative aligns with the government’s digital goals to drive automation and Industry 4.0 in the country. These developments are likely to have aided Nokia’s performance in the quarter.
The Zacks Consensus Estimate for Nokia’s revenues is pegged at $7,399 million, which indicates a decline of 5.5% from the year-ago quarter’s reported figure. The consensus estimate for adjusted earnings per share is pegged at 12 cents, suggesting a decrease of 29.4%.
Our proven model does not predict an earnings beat for Nokia for the fourth quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here.
Nokia currently has an Earnings ESP of +14.29% and a Zacks Rank #4 (Sell).
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Viasat, Inc. (VSAT - Free Report) is scheduled to report third-quarter fiscal 2022 results before the opening bell. The company is expected to have recorded year-over-year higher revenues on the back of subscriber growth.
With the rapid proliferation of the smartphone market and usage of mobile broadband, the user demand for coverage, speed and quality has increased, which in turn is fueling the demand for network tuning and optimization to maintain high data traffic. The company attracts millions of U.S. consumers and enterprises with its high-quality broadband service. Viasat is ramping up investments in developing its revolutionary ViaSat-3 broadband communications platform, which will have nearly 10 times the bandwidth capacity of ViaSat-2. These satellites will be capable of covering one-third of the world, including all Americas. The second ViaSat-3 will cover Europe, the Middle East and Africa region. The ViaSat-3 platform will help form a global broadband network with sufficient network capacity to allow better consumer choices with an affordable, high-quality, high-speed Internet and video streaming service. These are likely to have aided the upcoming earnings.
The Zacks Consensus Estimate for Viasat’s revenues is pegged at $716 million, which indicates growth from the year-ago quarter’s reported figure of $576 million. The consensus estimate for adjusted earnings per share is pegged at a loss of 2 cents, suggesting a decline of 120%.
Viavi Solutions Inc. (VIAV - Free Report) is scheduled to report second-quarter fiscal 2022 results after the closing bell. The company is expected to have recorded year-over-year higher revenues driven by a secular demand for 5G wireless, fiber and 3D sensing.
The company boasts a comprehensive product portfolio that offers end-to-end network visibility and analytics that help build, test, certify, maintain and optimize complex physical and virtual networks. Viavi’s wireless and fiber test solutions are in the early stages of a multi-year investment cycle fueled by the transition of OEMs and service providers to superfast 5G networks. The healthy growth traction is further demonstrated by the upside in wireless & fiber test, 3D sensing products, optical transport, Ethernet, broadband access, video test and storage network testing markets. These developments are likely to have positively impacted Viavi’s upcoming earnings.
The Zacks Consensus Estimate for Viavi’s revenues is pegged at $304 million, which indicates marginal growth from the year-ago quarter’s reported figure of $300 million. The consensus estimate for adjusted earnings per share is pegged at 19 cents, suggesting a decline of 17.4%.
Viavi currently has an Earnings ESP of 0.00% and a Zacks Rank #2.
Image: Bigstock
Telecom Stocks Earnings to Watch on Feb 3: NOK, VSAT & VIAV
The Technology sector, of which Telecom is an integral part, is likely to report modest earnings for the October-December quarter compared with other sectors. Despite supply-chain disruptions due to the worldwide shortage of semiconductors affecting telecom companies’ operations, the sector seems to have been well-placed with recurring revenues on digital acceleration. Better-than-expected sector revenues with a faster pace of 5G deployment and rapid proliferation of IoT devices amid the work-from-home trend instill optimism.
The passage of the $1.2 trillion infrastructure bill in the House further buoyed the growth momentum. The multi-billion infrastructure bill includes a $65 billion provision to significantly expand broadband access to Americans as the administration aims to fortify its technological prowess to thwart the dominance of countries like China. The plan envisions reaching the underserved areas of the country and prioritizing support for broadband networks affiliated with local governments, nonprofit organizations and cooperatives to encourage strong competition with privately-owned companies. The plan has also earmarked funds for the tribal areas that lack access to high-speed Internet to bridge the digital divide. It is likely to lower the prices for Internet services by requiring funding recipients to offer a low-cost affordable plan and encourage price transparency.
Though the sector appears to have overcome the pandemic-induced adversities through the gradual resumption of business activities, profitability has largely been compromised. Various trade restrictions on the grounds of national security concerns have eroded sector margins, while higher infrastructure investments for 5G networks have increased operating costs. Upfront capital investments for 5G have proven to be substantially higher than previous generations of wireless deployments due to network density requirements, hurting the return on capital.
While technological progress has changed the way consumers communicate, resulting in higher home data consumption and video streaming, intense competition and commoditization of services have limited the chances for companies to benefit from these trends.
Per the latest Earnings Trends, total earnings for the Technology sector for the quarter ended December 2021 are expected to be up 10.3% on 9.3% year-over-year higher revenues compared with the actuals of 36.1% and 17.2% in third-quarter 2021.
Let’s take a look at three leading Telecom stocks that are slated to report quarterly results on Feb 3.
Nokia Corporation (NOK - Free Report) is scheduled to report fourth-quarter 2021 results before the opening bell. The Finland-based telecom equipment vendor is expected to have recorded year-over-year lower revenues due to supply-chain constraints and headwinds in the Mobile Networks segment in North America.
During the quarter, Nokia was selected by ARC Solutions to provide a high-capacity data center interconnection solution in the Middle East. ARC, a joint venture between UAE’s du and Bahrain’s Batelco, provides networking solutions that simplify connecting and optimizing applications and services across the Middle East. Nokia partnered with Teletalk Bangladesh to deploy the first 5G network in the South Asian country. The initiative aligns with the government’s digital goals to drive automation and Industry 4.0 in the country. These developments are likely to have aided Nokia’s performance in the quarter.
The Zacks Consensus Estimate for Nokia’s revenues is pegged at $7,399 million, which indicates a decline of 5.5% from the year-ago quarter’s reported figure. The consensus estimate for adjusted earnings per share is pegged at 12 cents, suggesting a decrease of 29.4%.
Our proven model does not predict an earnings beat for Nokia for the fourth quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here.
Nokia currently has an Earnings ESP of +14.29% and a Zacks Rank #4 (Sell).
Nokia Corporation Price and EPS Surprise
Nokia Corporation price-eps-surprise | Nokia Corporation Quote
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Viasat, Inc. (VSAT - Free Report) is scheduled to report third-quarter fiscal 2022 results before the opening bell. The company is expected to have recorded year-over-year higher revenues on the back of subscriber growth.
With the rapid proliferation of the smartphone market and usage of mobile broadband, the user demand for coverage, speed and quality has increased, which in turn is fueling the demand for network tuning and optimization to maintain high data traffic. The company attracts millions of U.S. consumers and enterprises with its high-quality broadband service. Viasat is ramping up investments in developing its revolutionary ViaSat-3 broadband communications platform, which will have nearly 10 times the bandwidth capacity of ViaSat-2. These satellites will be capable of covering one-third of the world, including all Americas. The second ViaSat-3 will cover Europe, the Middle East and Africa region. The ViaSat-3 platform will help form a global broadband network with sufficient network capacity to allow better consumer choices with an affordable, high-quality, high-speed Internet and video streaming service. These are likely to have aided the upcoming earnings.
The Zacks Consensus Estimate for Viasat’s revenues is pegged at $716 million, which indicates growth from the year-ago quarter’s reported figure of $576 million. The consensus estimate for adjusted earnings per share is pegged at a loss of 2 cents, suggesting a decline of 120%.
Viasat currently has an Earnings ESP of 0.00% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Viasat Inc. Price and EPS Surprise
Viasat Inc. price-eps-surprise | Viasat Inc. Quote
Viavi Solutions Inc. (VIAV - Free Report) is scheduled to report second-quarter fiscal 2022 results after the closing bell. The company is expected to have recorded year-over-year higher revenues driven by a secular demand for 5G wireless, fiber and 3D sensing.
The company boasts a comprehensive product portfolio that offers end-to-end network visibility and analytics that help build, test, certify, maintain and optimize complex physical and virtual networks. Viavi’s wireless and fiber test solutions are in the early stages of a multi-year investment cycle fueled by the transition of OEMs and service providers to superfast 5G networks. The healthy growth traction is further demonstrated by the upside in wireless & fiber test, 3D sensing products, optical transport, Ethernet, broadband access, video test and storage network testing markets. These developments are likely to have positively impacted Viavi’s upcoming earnings.
The Zacks Consensus Estimate for Viavi’s revenues is pegged at $304 million, which indicates marginal growth from the year-ago quarter’s reported figure of $300 million. The consensus estimate for adjusted earnings per share is pegged at 19 cents, suggesting a decline of 17.4%.
Viavi currently has an Earnings ESP of 0.00% and a Zacks Rank #2.
Viavi Solutions Inc. Price and EPS Surprise
Viavi Solutions Inc. price-eps-surprise | Viavi Solutions Inc. Quote
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.