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Telecom Stocks to Watch for Earnings on Feb 2: MSI, HRS, CY
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The Q4 earnings season is in full swing with the quarterly numbers of several companies already on board. The picture to have emerged so far for top- and bottom-line growth, is an extremely a healthy one. In fact, the Q4 earnings season is poised to be the second successive reporting cycle to witness earnings growth. Prior to Q3, we witnessed five consecutive quarters of earnings contraction.
According to our latest Earnings Outlook report, 171 S&P 500 players (34.1% of the index’s membership) have reported their quarterly numbers this season. The bottom line has expanded 6% year over year for these companies, while the top line has grown only 3.1%. Over 64% of these companies have reported better-than-expected earnings and 54.8% of them have outperformed on the revenue front.
The S&P 500 space is projected to end the current reporting cycle with total earnings growth of 5.3% and revenue expansion of 4%, both on a year-over-year basis. The majority of the 16 Zacks sectors are poised to end Q4 with bottom-line expansion. One of those sectors is the Computer & Technology sector, whose bottom line is expected to expand 5.9% in Q4 with revenues growing 4.4%.
Given this backdrop, let's take a look at some key telecom stocks, belonging to this sector, that are due to report their quarterly numbers on Feb 2.
Motorola Solutions, Inc. (MSI - Free Report) is engaged in providing communication equipments, software and services. It focuses on providing public safety communications – from infrastructure to applications and devices. The company has a Zacks Rank #3 (Hold) and Earnings ESP of 0.00%. This is because both Most Accurate estimate and the Zacks Consensus Estimate stand at $1.80 per share. 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, our proven model does not conclusively show that Motorola Solutions is likely to beat the Zacks Consensus Estimate this quarter (Read more: Motorola Solutions Q4 Earnings: What's in the Cards?).
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Harris Corporation is an international company focused on communications equipment for voice, data and video applications. Harris has a Zacks Rank #2 (Buy) and an Earnings ESP of 0.00%. This is because the Most Accurate estimate is in line with the Zacks Consensus Estimate of $1.38. Though the company’s Zacks Rank #2 increases the predictive power of ESP, its 0.00% Earnings ESP makes surprise prediction difficult (Read more: Harris to Report Q2 Earnings: What's in the Cards?).
Cypress Semiconductor Corporation designs, develops, manufactures and markets a broad line of high-performance digital and mixed-signal integrated circuits for a range of markets, including data communications, telecommunications, computers, and instrumentation systems. The company has an earnings ESP of 0.00% and a Zacks Rank #4 (Sell). The combination makes it unlikely for the company to report better-than-expected earnings this time. We advise investors not to consider Sell-rated stocks (Zacks Rank #4 or 5) going into an earnings announcement, especially when the company is seeing negative estimates revisions.
Cypress Semiconductor Corporation Price and EPS Surprise
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? As of early December, the 2016 Top 10 produced 5 double-digit winners including oil and natural gas giant Pioneer Natural Resources which racked up a stellar +50% gain. The new list is painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. Be among the very first to see it>>
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Telecom Stocks to Watch for Earnings on Feb 2: MSI, HRS, CY
The Q4 earnings season is in full swing with the quarterly numbers of several companies already on board. The picture to have emerged so far for top- and bottom-line growth, is an extremely a healthy one. In fact, the Q4 earnings season is poised to be the second successive reporting cycle to witness earnings growth. Prior to Q3, we witnessed five consecutive quarters of earnings contraction.
According to our latest Earnings Outlook report, 171 S&P 500 players (34.1% of the index’s membership) have reported their quarterly numbers this season. The bottom line has expanded 6% year over year for these companies, while the top line has grown only 3.1%. Over 64% of these companies have reported better-than-expected earnings and 54.8% of them have outperformed on the revenue front.
The S&P 500 space is projected to end the current reporting cycle with total earnings growth of 5.3% and revenue expansion of 4%, both on a year-over-year basis. The majority of the 16 Zacks sectors are poised to end Q4 with bottom-line expansion. One of those sectors is the Computer & Technology sector, whose bottom line is expected to expand 5.9% in Q4 with revenues growing 4.4%.
Given this backdrop, let's take a look at some key telecom stocks, belonging to this sector, that are due to report their quarterly numbers on Feb 2.
Motorola Solutions, Inc. (MSI - Free Report) is engaged in providing communication equipments, software and services. It focuses on providing public safety communications – from infrastructure to applications and devices. The company has a Zacks Rank #3 (Hold) and Earnings ESP of 0.00%. This is because both Most Accurate estimate and the Zacks Consensus Estimate stand at $1.80 per share. 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, our proven model does not conclusively show that Motorola Solutions is likely to beat the Zacks Consensus Estimate this quarter (Read more: Motorola Solutions Q4 Earnings: What's in the Cards?).
Motorola Solutions, Inc. Price and EPS Surprise
Motorola Solutions, Inc. Price and EPS Surprise | Motorola Solutions, Inc. Quote
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Harris Corporation is an international company focused on communications equipment for voice, data and video applications. Harris has a Zacks Rank #2 (Buy) and an Earnings ESP of 0.00%. This is because the Most Accurate estimate is in line with the Zacks Consensus Estimate of $1.38. Though the company’s Zacks Rank #2 increases the predictive power of ESP, its 0.00% Earnings ESP makes surprise prediction difficult (Read more: Harris to Report Q2 Earnings: What's in the Cards?).
Harris Corporation Price and EPS Surprise
Harris Corporation Price and EPS Surprise | Harris Corporation Quote
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Cypress Semiconductor Corporation designs, develops, manufactures and markets a broad line of high-performance digital and mixed-signal integrated circuits for a range of markets, including data communications, telecommunications, computers, and instrumentation systems. The company has an earnings ESP of 0.00% and a Zacks Rank #4 (Sell). The combination makes it unlikely for the company to report better-than-expected earnings this time. We advise investors not to consider Sell-rated stocks (Zacks Rank #4 or 5) going into an earnings announcement, especially when the company is seeing negative estimates revisions.
Cypress Semiconductor Corporation Price and EPS Surprise
Cypress Semiconductor Corporation Price and EPS Surprise | Cypress Semiconductor Corporation Quote
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? As of early December, the 2016 Top 10 produced 5 double-digit winners including oil and natural gas giant Pioneer Natural Resources which racked up a stellar +50% gain. The new list is painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. Be among the very first to see it>>