Back to top

Image: Bigstock

Inseego (INSG) to Report Q3 Earnings: What's in the Cards?

Read MoreHide Full Article

Inseego (INSG - Free Report) is set to report third-quarter 2020 results on Nov 5.

The Zacks Consensus Estimate for revenues is currently pegged at $81.7 million, which suggests an increase of 30.2% from the year-ago quarter’s reported figure.

For the quarter under review, the consensus mark for earnings remained steady at breakeven over the past 30 days.

Over the trailing four quarters, the company’s earnings beat the Zacks Consensus Estimate twice and missed in the remaining two, the average surprise being 6.3%.

Inseego Corp. Price and EPS Surprise

Inseego Corp. Price and EPS Surprise

Inseego Corp. price-eps-surprise | Inseego Corp. Quote

Let’s see how things have shaped up prior to this announcement.

Key Factors to Consider

Inseego’s third-quarter results are expected to have benefited from increased demand for its 4G mobile broadband solutions due to the coronavirus-led work-from-home trend and growing traction of its 5G-based solutions.

The ongoing wave of remote working has led to a surge in demand for mobile hotspots. Moreover, accelerated bandwidth consumption has demonstrated the limitations of the existing 4G VOLTE networks and the need for 5G, which is two times faster than the previous generations.

Notably, in September, the company introduced Inseego 5G MiFi M2000 mobile hotspot, the first commercially available 5G MiFi mobile hotspot built on second-generation 5G technology. It is expected to have expanded the company’s product offerings and driven innovation in the 5G network portfolio.

Markedly, Inseego also partnered with Verzion to unveil the Inseego MiFi M2100 5G UW mobile hotspot. The partnership is likely to have helped in the deployment of its second-generation 5G solutions to international carrier customers.

Further, the company added a new Tier 1 North American customer to its customer base for 4G LTE MiFi mobile hotspot. This is expected to have aided growth and expansion of 5G engagements with U.S.-based carriers.

Moreover, Inseego is likely to have benefited from the expansion of its customer base in the SD WAN market, as it strengthened its relationships with industry leaders like VMware and Dell.

Notably, the company’s Ctrack business is likely to have gained momentum in the to-be-reported quarter due to the lifting of government restrictions led by the pandemic.

Moreover, the company’s Skyus line of industrial IoT products has been gaining traction due to expansion in the software-defined, wide- area network market.

What Our Model Indicates

Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.

Inseego has a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Other Stocks to Consider

Here are some other companies worth considering as our model shows that these too have the right combination of elements to beat on earnings this reporting cycle:

Paycom Software (PAYC - Free Report) has an Earnings ESP of +3.67% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Cambium Networks (CMBM - Free Report) has an Earnings ESP of +17.21% and a Zacks Rank #2.

Marchex (MCHX - Free Report) has an Earnings ESP of +16.67% and a Zacks Rank #2.

The Hottest Tech Mega-Trend of All

Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.

See Zacks' 3 Best Stocks to Play This Trend >>