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Telecom Stocks Earnings Roster for Jul 31: HRS, COMM & More

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The earnings season is past the halfway mark with 265 S&P 500 members having reported results till Jul 27, 2018. Sustained momentum reinforces expectations that second-quarter 2018 is likely to replicate the performance of the prior quarter, which proved to be one of the strongest in the past seven years. Total earnings for the S&P 500 companies that have already reported are up 23.6% year over year on 10.1% higher revenues with 80.8% beating earnings estimates and 72.1% surpassing top-line expectations. Based on the hitherto observed pattern, the April-June 2018 quarter is anticipated to register healthy double-digit percentage earnings growth on a year-over-year basis.  

Per the latest Earnings Preview, overall earnings for all the S&P 500 companies are expected to be up 23.6% on 8.8% growth in revenues. This represents an almost similar growth projection from the previous quarter, which recorded 24.6% earnings growth on 8.6% higher revenues, keeping in mind that actual results typically exceed estimates by 3-5%. Experts widely believe that earnings growth is likely to improve steadily until the end of 2019, as the effect of tax cuts gradually seep in.

The Technology sector, of which Telecom is part, appears to be quite strong. For the sector, earnings are expected to improve 30.6% year over year while revenues are touted to rise 11.8% due to healthy growth dynamics on the back of existing secular trends in cloud computing, artificial intelligence and Big Data.

Let’s take a sneak peek at five Telecom stocks scheduled to report earnings on Jul 31 to see how things are shaping up for the upcoming results.

Harris Corporation is scheduled to release fourth-quarter fiscal 2018 results before the opening bell. With continued order momentum reflecting strength in DoD Tactical and Avionics, Harris expects healthy top-line growth. For the fiscal fourth quarter, the Zacks Consensus Estimate for total revenues is pegged at $1,618 million, up from $1,542 million reported in the year-earlier quarter. However, higher operating costs remain a perennial challenge for the company and strain its bottom line. (Read more: Harris to Report Q4 Earnings: Disappointment in Store?)

For the to-be-reported quarter, the company currently has an Earnings ESP of -0.34%, and Zacks Rank #4 (Sell), making an earnings surprise prediction uncertain. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for a likely earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Harris Corporation Price and EPS Surprise

 

Harris Corporation Price and EPS Surprise | Harris Corporation Quote

CommScope Holding Company, Inc. (COMM - Free Report) is scheduled to report second-quarter 2018 results before the opening bell. It is continuously pursuing strategies focused on reducing operational costs and optimizing the overall cost structure. The company has a strong track record of successfully executing annual profit improvement plans and cost-saving initiatives. However, simmering tensions between the United States and China related to trade restrictions imposed on the sale of communication equipment to the Chinese firms have dented the credibility of the industry and led to loss of businesses.

We remain inconclusive about an earnings beat prediction this quarter as it has an ESP of 0.00% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

SendGrid, Inc. is slated to report second-quarter 2018 results after the closing bell. We remain inconclusive about an earnings beat prediction this quarter as it has an ESP of 0.00% and a Zacks Rank #3.

SendGrid, Inc. Price and EPS Surprise

 

SendGrid, Inc. Price and EPS Surprise | SendGrid, Inc. Quote

Intelsat S.A. is scheduled to report second-quarter 2018 results before the opening bell. We remain inconclusive about an earnings beat prediction this quarter as it has an ESP of 0.00% and a Zacks Rank #3.

Intelsat S.A. Price and EPS Surprise

 

Intelsat S.A. Price and EPS Surprise | Intelsat S.A. Quote

Iridium Communications Inc. (IRDM - Free Report) is slated to report second-quarter 2018 results before the opening bell. We remain fairly certain on an earnings beat prediction this quarter as it has an ESP of +63.64% and a Zacks Rank #3.

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