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Ubiquiti (UBNT) to Report Q4 Earnings: What's in the Cards?
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Ubiquiti Networks, Inc. is scheduled to report fourth-quarter fiscal 2018 results before the opening bell on Aug 24. In the last reported quarter, the company delivered a positive earnings surprise of 22.5%.
Let’s see how things are shaping up for this announcement.
Factors at Play
Ubiquiti is focusing on three core technologies for optimal contribution toward its growth momentum — high-capacity distributed Internet access, unified information technology and next-gen consumer electronics for home and personal use. It believes that its global market share in Enterprise Technology will continue to grow, supported by increasing adoption of UniFi products, including switches, security gateways and cameras. However, the company continues facing various operating risks that impair its growth potential to some extent.
For fourth-quarter fiscal 2018, the Zacks Consensus Estimate for total revenues is pegged at $242 million, higher than $229 million reported in the year-earlier quarter on the back of healthy demand pattern for UniFi product family. Adjusted earnings per share are expected to improve to 98 cents from 75 cents reported a year ago.
What Our Model Says
Our proven model does not conclusively show that Ubiquiti is likely to beat estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is not the case here as you will see below:
Earnings ESP: Ubiquiti’s Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00%, as both are pegged at 98 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Ubiquiti currently has a Zacks Rank #3, which increases the predictive power of ESP. However, the company’s 0.00% ESP acts as a dampener.
We caution against all Sell-rated stocks (#4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are some companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this quarter:
ScanSource, Inc. (SCSC - Free Report) has an Earnings ESP of +1.94% and a Zacks Rank #2.
DSW Inc. has an Earnings ESP of +2.13% and a Zacks Rank #2.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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Ubiquiti (UBNT) to Report Q4 Earnings: What's in the Cards?
Ubiquiti Networks, Inc. is scheduled to report fourth-quarter fiscal 2018 results before the opening bell on Aug 24. In the last reported quarter, the company delivered a positive earnings surprise of 22.5%.
Let’s see how things are shaping up for this announcement.
Factors at Play
Ubiquiti is focusing on three core technologies for optimal contribution toward its growth momentum — high-capacity distributed Internet access, unified information technology and next-gen consumer electronics for home and personal use. It believes that its global market share in Enterprise Technology will continue to grow, supported by increasing adoption of UniFi products, including switches, security gateways and cameras. However, the company continues facing various operating risks that impair its growth potential to some extent.
For fourth-quarter fiscal 2018, the Zacks Consensus Estimate for total revenues is pegged at $242 million, higher than $229 million reported in the year-earlier quarter on the back of healthy demand pattern for UniFi product family. Adjusted earnings per share are expected to improve to 98 cents from 75 cents reported a year ago.
What Our Model Says
Our proven model does not conclusively show that Ubiquiti is likely to beat estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is not the case here as you will see below:
Earnings ESP: Ubiquiti’s Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00%, as both are pegged at 98 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Ubiquiti Networks, Inc. Price and EPS Surprise
Ubiquiti Networks, Inc. Price and EPS Surprise | Ubiquiti Networks, Inc. Quote
Zacks Rank: Ubiquiti currently has a Zacks Rank #3, which increases the predictive power of ESP. However, the company’s 0.00% ESP acts as a dampener.
We caution against all Sell-rated stocks (#4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are some companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this quarter:
Best Buy Co., Inc. (BBY - Free Report) has an Earnings ESP of +1.46% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
ScanSource, Inc. (SCSC - Free Report) has an Earnings ESP of +1.94% and a Zacks Rank #2.
DSW Inc. has an Earnings ESP of +2.13% and a Zacks Rank #2.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>