The Q3 earning season so far has seen companies record better earnings and revenue growth than in the past few quarters. Notably, a larger number of companies are beating street estimates, with the banking sector leading the way. Given the rosy earnings picture, earnings growth in Q3 may move into the positive territory for the first time after the 5 back-to-back quarters of declines for the S&P 500 Index. However, our Earnings Outlook still projects a 1% year-over-year decline in Q3 earnings with revenues likely to clock 1.5% growth.
Telecom Stocks in Focus
The U.S. telecommunications industry is expected to see reasonable growth through 2016. This industry has lately emerged as an intensely contested space where the key catalysts to success are technical superiority, the quality of services and scalability. Despite fierce competition, uninterrupted advancement in telecom technologies has aided the telecom operators and equipment manufacturers to adopt newer business models in order to improve revenues.
Let us look at some of the stocks related to the telecom services sector that are due to report their earnings next week.
T-Mobile US Inc. (TMUS - Free Report) – a Zacks Rank #3 (Hold) stock – is scheduled to report its quarterly numbers on Oct 24. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The stock has an Earnings ESPof 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 23 cents. We remind our investors that a combination of a Zacks Rank #3 or better with a positive Earnings ESP makes us confident of an earnings beat. However, T-Mobile’s ESP of 0.00% makes surprise prediction difficult. Initially, our model had predicted an earnings beat for the company in this quarter. (Read More: T-Mobile US (TMUS - Free Report) : A Beat in Store this Earnings Season?)
AT&T Inc. (T - Free Report) is scheduled to report its quarterly figures on Oct 25. The company has a combination of Zacks Rank #3 and an Earnings ESP of -1.35%. This is because the Most Accurate estimate is 73 cents while the Zacks Consensus Estimate is pegged at 74 cents. This doesn’t make us confident of an earnings beat this quarter. (Read More: AT&T (T - Free Report) Q3 Earnings: What's in Store for the Stock?)
Sprint Corp. (S) is also expected to release its quarterly results on Oct 25. This Zacks Rank #3 stock has an Earnings ESP of -12.50%. This is because the Most Accurate estimate stands at a loss of 9 cents while the Zacks Consensus Estimate is pegged at a loss of 8 cents. This, as per our model, doesn’t conclusively show that Sprint will beat estimates this quarter. (Read more: Sprint (S): What's in Store for the Stock in Q2 Earnings?)
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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.
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The Q3 earning season so far has seen companies record better earnings and revenue growth than in the past few quarters. Notably, a larger number of companies are beating street estimates, with the banking sector leading the way. Given the rosy earnings picture, earnings growth in Q3 may move into the positive territory for the first time after the 5 back-to-back quarters of declines for the S&P 500 Index. However, our Earnings Outlook still projects a 1% year-over-year decline in Q3 earnings with revenues likely to clock 1.5% growth.
Telecom Stocks in Focus
The U.S. telecommunications industry is expected to see reasonable growth through 2016. This industry has lately emerged as an intensely contested space where the key catalysts to success are technical superiority, the quality of services and scalability. Despite fierce competition, uninterrupted advancement in telecom technologies has aided the telecom operators and equipment manufacturers to adopt newer business models in order to improve revenues.
Let us look at some of the stocks related to the telecom services sector that are due to report their earnings next week.
T-Mobile US Inc. (TMUS - Free Report) – a Zacks Rank #3 (Hold) stock – is scheduled to report its quarterly numbers on Oct 24. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The stock has an Earnings ESPof 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 23 cents. We remind our investors that a combination of a Zacks Rank #3 or better with a positive Earnings ESP makes us confident of an earnings beat. However, T-Mobile’s ESP of 0.00% makes surprise prediction difficult. Initially, our model had predicted an earnings beat for the company in this quarter. (Read More: T-Mobile US (TMUS - Free Report) : A Beat in Store this Earnings Season?)
AT&T Inc. (T - Free Report) is scheduled to report its quarterly figures on Oct 25. The company has a combination of Zacks Rank #3 and an Earnings ESP of -1.35%. This is because the Most Accurate estimate is 73 cents while the Zacks Consensus Estimate is pegged at 74 cents. This doesn’t make us confident of an earnings beat this quarter. (Read More: AT&T (T - Free Report) Q3 Earnings: What's in Store for the Stock?)
Sprint Corp. (S) is also expected to release its quarterly results on Oct 25. This Zacks Rank #3 stock has an Earnings ESP of -12.50%. This is because the Most Accurate estimate stands at a loss of 9 cents while the Zacks Consensus Estimate is pegged at a loss of 8 cents. This, as per our model, doesn’t conclusively show that Sprint will beat estimates this quarter. (Read more: Sprint (S): What's in Store for the Stock in Q2 Earnings?)
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>
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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