Telecommunication stocks fall under the widely diversified Computer &Technology sector. As per our latest Earnings trends report, 25.8% of S&P 500 companies under this sector (representing 38% in terms of market capitalization) reported their quarterly numbers as of Jul 22.
Although earnings growth rate for the sector is in the negative territory (0.2%), an impressive proportion of the sector participants (75%) have outshined the Zacks Consensus Estimate with respect to the bottom line in the Q2 earnings season so far. The healthy earnings beat percentage comes on the back of impressive bottom-line performances by key sector players like Plexus Corp. (PLXS - Free Report) and Intel Corp. (INTC - Free Report) .
According to the report, the sector is expected to end Q2 with a negative earnings growth rate of 3% as it is one of the nine Zacks sectors (total 16) projected to see earnings deceleration in Q2. In fact, earnings growth is expected to be -3.4% for the for the entire S&P 500 index in Q2.
We will be in a better position by the end of this week to answer whether the prediction will come true not only for this sector but the overall Q2 earnings season. A plethora of reports (including 189 in the S&P 500 space) will be available by the time the current week comes to an end.
Many telecommunication players are slated to release their second-quarter results this week. Investors interested in the broader Computer &Technology sector also eagerly await the quarterly releases. Let’s take a look at what possibly awaits the key telecom players on Jul 27.
New York-based Corning Inc. (GLW - Free Report) is primarily a developer of advanced glass substrates for multiple markets.According to our quantitative model, a company needs the right combination of two key ingredients – a positive Earnings ESPand a Zacks Rank #3 (Hold) or better – to increase its odds of an earnings surprise. Although Corning sports a Zacks Rank #1 (Strong Buy), its Earnings ESP of 0.00% is a spoiler, making an earnings beat unlikely (read more: What's in Store for Corning This Earnings Season?).
Founded in 1884 and based in Broomfield, CO,Level 3 Communications Inc. is an international communications and information services company with presence in North America, Latin America, Europe, the Middle East, and Africa.Previously, our model had hinted at an earnings ESP of -6.38% and a Zacks Rank #3. Although the earnings ESP measure is still the same, the company currently carries a Zacks Rank #2 (Buy). Despite the bullish rank, an earnings beat remains unlikely due to the disappointing earnings ESP (read more: Level 3 Communications Q2 Earnings: What's Up?).
ARRIS International plc , based in Suwanee, United States, is a global technology leader in the development of advanced cable telephony, next-generation high-speed data network, demand-driven video solutions, operations software, and broadband access equipment. The company is unlikely to beat earnings this quarter as it has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell). The earnings ESP stands at 0.00% as the Most Accurate estimate is pegged at 59 cents which is in line with the Zacks Consensus Estimate.
Sonus Networks Inc. , based in WESTFORD, MA, is a leading provider of secure and advanced cloud communication services. The company has a Zacks Rank #3, however, its Earnings ESP of 0.00% dims its chances of an earnings beat. The earnings ESP stands at 0.00% for the company as the Most Accurate estimate is in line with the Zacks Consensus Estimate.
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Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Telecommunication stocks fall under the widely diversified Computer &Technology sector. As per our latest Earnings trends report, 25.8% of S&P 500 companies under this sector (representing 38% in terms of market capitalization) reported their quarterly numbers as of Jul 22.
Although earnings growth rate for the sector is in the negative territory (0.2%), an impressive proportion of the sector participants (75%) have outshined the Zacks Consensus Estimate with respect to the bottom line in the Q2 earnings season so far. The healthy earnings beat percentage comes on the back of impressive bottom-line performances by key sector players like Plexus Corp. (PLXS - Free Report) and Intel Corp. (INTC - Free Report) .
According to the report, the sector is expected to end Q2 with a negative earnings growth rate of 3% as it is one of the nine Zacks sectors (total 16) projected to see earnings deceleration in Q2. In fact, earnings growth is expected to be -3.4% for the for the entire S&P 500 index in Q2.
We will be in a better position by the end of this week to answer whether the prediction will come true not only for this sector but the overall Q2 earnings season. A plethora of reports (including 189 in the S&P 500 space) will be available by the time the current week comes to an end.
Many telecommunication players are slated to release their second-quarter results this week. Investors interested in the broader Computer &Technology sector also eagerly await the quarterly releases. Let’s take a look at what possibly awaits the key telecom players on Jul 27.
New York-based Corning Inc. (GLW - Free Report) is primarily a developer of advanced glass substrates for multiple markets.According to our quantitative model, a company needs the right combination of two key ingredients – a positive Earnings ESPand a Zacks Rank #3 (Hold) or better – to increase its odds of an earnings surprise. Although Corning sports a Zacks Rank #1 (Strong Buy), its Earnings ESP of 0.00% is a spoiler, making an earnings beat unlikely (read more: What's in Store for Corning This Earnings Season?).
Founded in 1884 and based in Broomfield, CO,Level 3 Communications Inc. is an international communications and information services company with presence in North America, Latin America, Europe, the Middle East, and Africa.Previously, our model had hinted at an earnings ESP of -6.38% and a Zacks Rank #3. Although the earnings ESP measure is still the same, the company currently carries a Zacks Rank #2 (Buy). Despite the bullish rank, an earnings beat remains unlikely due to the disappointing earnings ESP (read more: Level 3 Communications Q2 Earnings: What's Up?).
ARRIS International plc , based in Suwanee, United States, is a global technology leader in the development of advanced cable telephony, next-generation high-speed data network, demand-driven video solutions, operations software, and broadband access equipment. The company is unlikely to beat earnings this quarter as it has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell). The earnings ESP stands at 0.00% as the Most Accurate estimate is pegged at 59 cents which is in line with the Zacks Consensus Estimate.
Sonus Networks Inc. , based in WESTFORD, MA, is a leading provider of secure and advanced cloud communication services. The company has a Zacks Rank #3, however, its Earnings ESP of 0.00% dims its chances of an earnings beat. The earnings ESP stands at 0.00% for the company as the Most Accurate estimate is in line with the Zacks Consensus Estimate.
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 >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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