Back to top

Image: Bigstock

Telecom Stocks' Q3 Earnings Roster for Oct 23: VZ, GLW, JNPR

Read MoreHide Full Article

The earnings season is off to solid start and is likely to replicate the preceding two quarter’s performance, which proved to be one of the strongest in the past seven years. About 84 S&P 500 members have already released results till Oct 19. Total earnings for these companies are up 19.2% year over year on 8.4% higher revenues with 82.1% beating earnings estimates and 61.9% surpassing top-line expectations. Based on the hitherto observed pattern, third-quarter 2018 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 19.2% on 7.2% growth in revenues. Experts widely believe that earnings growth is likely to improve steadily until the end of 2018, as the effect of tax cuts gradually percolates.

The Technology sector, of which Telecom is part, appears to be quite strong. For the sector, earnings are expected to improve 15% year over year while revenues are touted to rise 11.4% 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 three major Telecom stocks scheduled to report third-quarter earnings on Oct 23 to see how things are shaping up for the upcoming results.

Verizon Communications Inc. (VZ - Free Report) is scheduled to release results before the opening bell. The company expects considerable growth in both its Wireless and Wireline businesses, going forward. Verizon anticipates healthy improvement in margins on the back of continued strong FiOS fiber-optic network and strategic services in the Wireline business. Also, it is looking forward to capitalize on the countless innovative technology solutions being developed in the Internet of Things and telematics ecosystem across multiple industries. Further, the company’s current focus on online content delivery, mobile video and online advertising should drive growth. Moreover, Verizon continues to achieve increased market traction with focus on the retail post-paid market, higher penetration of smartphones and related sale of Internet devices.

For the to-be-reported quarter, the company currently has an Earnings ESP of +0.04%, and Zacks Rank #3 (Hold), making an earnings surprise prediction certain. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 for a likely earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. (Read More: Will High Wireless Revenues Buoy Verizon's Q3 Earnings?)

Corning Incorporated (GLW - Free Report) is scheduled to report results before the opening bell. Corning expects a step-change in sales and profitability in the third quarter as several of its large capacity expansion projects have exited the start-up phase, and production and efficiency rates are climbing. The company expects pricing environment to be favorable. It expects tax rate for the quarter to be around 21.7%. (Read More: Can Healthy Top-Line Growth Aid Corning’s Q3 Earnings?)

We remain inconclusive on an earnings beat prediction this quarter as it has an ESP of -0.42% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Corning Incorporated Price and EPS Surprise

 

Corning Incorporated Price and EPS Surprise | Corning Incorporated Quote

Juniper Networks, Inc. (JNPR - Free Report) is scheduled to report results after the closing bell.

During the third quarter, Juniper introduced a 5G-ready firewall processing card to meet high security requirements. The company’s SPC3 Advanced Security Acceleration card offers an 11x performance boost to its line of SRX5000 Services Gateways. The SPC3 Advanced Security Acceleration card enables cloud providers, service providers and enterprises to meet the growing security demands of multicloud, Internet of Things, 5G as well as enterprise edge. The company has also launched a cost-effective cloud solution for service providers. Dubbed the Contrail Edge Cloud, the product offers a full-fledged secure cloud experience to the space- and power-constrained edge network, which includes base stations, hub sites and switching sites. The Contrail Edge Cloud solution provides automation, security and analytics features to facilitate service providers in deploying dynamic consumer and enterprise services in a cost and resource- efficient manner. (Read More: Will Lower Revenues Hurt Juniper’s Earnings in Q3?)

We remain fairly conclusive on an earnings beat prediction this quarter as it has an ESP of +3.18% and a Zacks Rank #3.

Juniper Networks, Inc. Price and EPS Surprise

 

Juniper Networks, Inc. Price and EPS Surprise | Juniper Networks, Inc. Quote

Looking for Stocks with Skyrocketing Upside?

Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.

Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.

See the pot trades we're targeting>>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Verizon Communications Inc. (VZ) - free report >>

Juniper Networks, Inc. (JNPR) - free report >>

Corning Incorporated (GLW) - free report >>

Published in