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NeoPhotonics (NPTN) to Report Q2 Earnings: What to Expect?

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NeoPhotonics Corporation is scheduled to release second-quarter 2020 results on Aug 4.

The company expects second-quarter revenues of $94-$102 million. The Zacks Consensus Estimate for the same is pegged at $99.7 million, suggesting year-over-year growth of 22%.

NeoPhotonics anticipates non-GAAP earnings of 5-15 cents per share. The consensus mark for the same is pinned at 12 cents per share, indicating a significant improvement from the year-ago quarter’s loss of 3 cents.

The company’s earnings surpassed estimates in all of the trailing four quarters, the average beat being 190%.

Factors at Play

Solid demand from global customers is likely to have driven NeoPhotonics’ second-quarter performance. Tender activities suggest that most of the company’s products are being sold through end customers in China, which is a positive.

Accelerated deployment of 5G in China is likely to have fueled demand for NeoPhotonics’ products during the June-end quarter.

However, supply-chain disruptions caused by the COVID-19 pandemic might have dampened the company’s overall quarterly performance. Moreover, higher operating expenses, thanks to increase in variable compensation, are likely to have weighed on the company’s performance during the quarter under review.

What Our Model Says

Our proven model predicts an earnings beat for NeoPhotonics this season. The combination of a positive Earnings ESP, and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.

NeoPhotonics currently carries a Zacks Rank of 3 and has an Earnings ESP of +21.63%.

Other Stocks With Favorable Combinations

Here are some other companies, which, per our model, have the right combination of elements to post an earnings beat this quarter:

TakeTwo Interactive Software (TTWO - Free Report) has an Earnings ESP of +5.35% and carries a Zacks Rank of 2, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

AMETEK Inc. (AME - Free Report) has an Earnings ESP of +3.96% and carries a Zacks Rank of 2, currently.

KLA Corporation (KLAC - Free Report) has an Earnings ESP of +0.67% and currently carries a Zacks Rank of 2.

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>

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