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.
Wireless Equipment Stocks Earnings on Aug 2: PCTI, IDCC, HRS
Read MoreHide Full Article
With 317 S&P 500 members having already reported their quarterly numbers (as of Jul 29), we are well past the half-way mark of the Q2 earnings season. Although growth pace in the quarter seems to have improved, anticipation for earnings growth remains negative. This would mean the fifth straight quarter of negative growth, asserting the fact that we are still in ‘Earnings Recession’.
As per the recent Earnings Preview, total S&P 500 earnings are expected to decline by 3.4% due to 0.4% lower revenues. The growth estimates for Q2 might not be the scraping end of the barrel as even Q3 estimates are leaning into the negative territory, raising concerns. However, we foresee positive earnings growth in the last quarter of the year which may scale even higher in 2017.
Focus on Wireless Equipment Industry
The wireless equipment industry currently carries a Zacks Industry Rank of 172 out of more than 265 industries. As per the Zacks Industry Rank guideline, the outlook for this particular industry is neutral. We believe that innovation in telecom technologies will aid equipment manufacturers in implementing newer business models in order to boost their revenues. However, cut-throat pricing competition might put pressure on margins.
Let us focus on three stocks of the wireless equipment segment that are due to release their earnings on Aug 2.
PCTEL, Inc. designs, develops, and delivers wireless solutions. The company has a Zacks Rank #3 (Hold) and an Earnings ESP of 0.00%. This is because both Most Accurate estimate and the Zacks Consensus Estimate are pegged at 2 cents. According to our quantitative 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, PCTEL doesn’t conclusively show that it is likely to beat the Zacks Consensus Estimate this quarter.
InterDigital, Inc. (IDCC - Free Report) develops and markets advanced digital wireless telecommunications systems. The company has a Zacks Rank #4 (Sell) and an Earnings ESP of -23.08%. This is because the Most Accurate estimate currently stands at 20 cents while the Zacks Consensus Estimate is pegged at 26 cents. Note that we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Harris Corporation is an international company focused on communications equipment for voice, data and video applications. The company has a Zacks Rank #4 and an Earnings ESP of 0.00%.This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 14 cents. As per our model, this combination of Harris doesn’t conclusively show that it is likely to beat the Zacks Consensus Estimate this quarter.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Wireless Equipment Stocks Earnings on Aug 2: PCTI, IDCC, HRS
With 317 S&P 500 members having already reported their quarterly numbers (as of Jul 29), we are well past the half-way mark of the Q2 earnings season. Although growth pace in the quarter seems to have improved, anticipation for earnings growth remains negative. This would mean the fifth straight quarter of negative growth, asserting the fact that we are still in ‘Earnings Recession’.
As per the recent Earnings Preview, total S&P 500 earnings are expected to decline by 3.4% due to 0.4% lower revenues. The growth estimates for Q2 might not be the scraping end of the barrel as even Q3 estimates are leaning into the negative territory, raising concerns. However, we foresee positive earnings growth in the last quarter of the year which may scale even higher in 2017.
Focus on Wireless Equipment Industry
The wireless equipment industry currently carries a Zacks Industry Rank of 172 out of more than 265 industries. As per the Zacks Industry Rank guideline, the outlook for this particular industry is neutral. We believe that innovation in telecom technologies will aid equipment manufacturers in implementing newer business models in order to boost their revenues. However, cut-throat pricing competition might put pressure on margins.
Let us focus on three stocks of the wireless equipment segment that are due to release their earnings on Aug 2.
PCTEL, Inc. designs, develops, and delivers wireless solutions. The company has a Zacks Rank #3 (Hold) and an Earnings ESP of 0.00%. This is because both Most Accurate estimate and the Zacks Consensus Estimate are pegged at 2 cents. According to our quantitative 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, PCTEL doesn’t conclusively show that it is likely to beat the Zacks Consensus Estimate this quarter.
PC-TEL INC Price and EPS Surprise
PC-TEL INC Price and EPS Surprise | PC-TEL INC Quote
InterDigital, Inc. (IDCC - Free Report) develops and markets advanced digital wireless telecommunications systems. The company has a Zacks Rank #4 (Sell) and an Earnings ESP of -23.08%. This is because the Most Accurate estimate currently stands at 20 cents while the Zacks Consensus Estimate is pegged at 26 cents. Note that we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
INTERDIGITL INC Price and EPS Surprise
INTERDIGITL INC Price and EPS Surprise | INTERDIGITL INC Quote
Harris Corporation is an international company focused on communications equipment for voice, data and video applications. The company has a Zacks Rank #4 and an Earnings ESP of 0.00%.This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 14 cents. As per our model, this combination of Harris doesn’t conclusively show that it is likely to beat the Zacks Consensus Estimate this quarter.
HARRIS CORP Price and EPS Surprise
HARRIS CORP Price and EPS Surprise | HARRIS CORP Quote
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>