As we are in the last leg of second-quarter earnings, the pessimism regarding the earnings decline projected at the start of the season has dissipated to some extent. Our Earnings Preview predicts a 3.5% year-over-year drop in earnings of S&P 500 companies on account of 0.4% lower revenues. Thus, the quarter is still expected to be in the negative territory for the fifth straight quarter. Additionally, growth estimates for third-quarter 2016 are starting to lean into the negative as well. However, we anticipate a change in the last quarter of the year with expectations of growth in earnings to pick up.
Satellite Industry in a Nutshell
Satellite communication, on its path to becoming a global industry, has had its share of earnings debacles and failures due to unprofitable business models. However, with time, these companies have developed into very successful ventures, in turn lucrative options for investors looking to boost their portfolios. As better satellite-receiving technology finds its way into more and more consumer devices, the possibilities are growing and the success creating very prominent revenue footprints for these rapidly expanding companies.
We focus on satellite communication stocks that are scheduled to report their second-quarter financial results on Aug 9.
Charter Communications, Inc. (CHTR - Free Report) is a leading broadband communications company and the fourth-largest cable operator in the United States. The stock 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 stand at 21 cents. We remind our investors that a combination of Zacks Rank #3 or better with a positive Earnings ESP makes us confident of an earnings beat. However, Charter Communications’ Earnings ESP of 0.00% makes a surprise prediction difficult.
EchoStar Corp. (SATS - Free Report) engages in digital set-top box business and a fixed satellite services business. The company has a Zacks Rank #4 (Sell) and an Earnings ESP of 4.35%. This is because the Most Accurate estimate currently stands at 48 cents while the broader Zacks Consensus Estimate stands lower at 46 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.
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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 >>
As we are in the last leg of second-quarter earnings, the pessimism regarding the earnings decline projected at the start of the season has dissipated to some extent. Our Earnings Preview predicts a 3.5% year-over-year drop in earnings of S&P 500 companies on account of 0.4% lower revenues. Thus, the quarter is still expected to be in the negative territory for the fifth straight quarter. Additionally, growth estimates for third-quarter 2016 are starting to lean into the negative as well. However, we anticipate a change in the last quarter of the year with expectations of growth in earnings to pick up.
Satellite Industry in a Nutshell
Satellite communication, on its path to becoming a global industry, has had its share of earnings debacles and failures due to unprofitable business models. However, with time, these companies have developed into very successful ventures, in turn lucrative options for investors looking to boost their portfolios. As better satellite-receiving technology finds its way into more and more consumer devices, the possibilities are growing and the success creating very prominent revenue footprints for these rapidly expanding companies.
We focus on satellite communication stocks that are scheduled to report their second-quarter financial results on Aug 9.
Charter Communications, Inc. (CHTR - Free Report) is a leading broadband communications company and the fourth-largest cable operator in the United States. The stock 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 stand at 21 cents. We remind our investors that a combination of Zacks Rank #3 or better with a positive Earnings ESP makes us confident of an earnings beat. However, Charter Communications’ Earnings ESP of 0.00% makes a surprise prediction difficult.
EchoStar Corp. (SATS - Free Report) engages in digital set-top box business and a fixed satellite services business. The company has a Zacks Rank #4 (Sell) and an Earnings ESP of 4.35%. This is because the Most Accurate estimate currently stands at 48 cents while the broader Zacks Consensus Estimate stands lower at 46 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.
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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