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Calix (CALX) to Report Q4 Earnings: What's in the Cards?

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Calix, Inc. (CALX - Free Report) is scheduled to report fourth-quarter 2020 results on Jan 27, after the closing bell. In the last reported quarter, the company delivered a positive earnings surprise of 100%. Notably, the company pulled off a trailing four-quarter earnings surprise of 72.2%, on average.

The San Jose, CA-based company is expected to have recorded higher revenues year over year. It continues to benefit from an expansion in customer base along with operational excellence. Calix is focused on providing the platforms that enable service providers to create services at a DevOps pace.

Factors at Play

During the quarter under review, Roanoke Connect (a broadband subsidiary of Roanoke Electric Cooperative) selected Calix’s portfolio to build North Carolina’s first 10G network. WWZ Energie, a leading Swiss quadruple-play cable broadband provider, is using Calix’s Intelligent Access EDGE solution to complete a migration from coax-based DOCSIS to fiber.

Calix made a host of enhancements to the Revenue EDGE solution for communications service provider (CSP) marketers to better identify subscribers who are working remotely. It also enhanced the Calix Support Cloud to increase the efficiency of how subscribers set up EDGE suites.

The company announced the 10G PON GigaPoint, which enables CSPs to future-proof not only their network capacity but also their service offerings. Arlo Technologies, a leading Internet-connected camera brand, added to the expanding ecosystem of the Revenue EDGE solutions. These developments are likely to have had a positive impact on the company’s top line.

For the December quarter, the Zacks Consensus Estimate for revenues is pegged at $159 million, indicating growth of 32.5% from the year-ago quarter’s reported figure. Adjusted earnings per share are pegged at 34 cents, which implies a surge of 277.8% from the prior-year quarter’s recorded figure.

What Our Model Says

Our proven model doesn’t conclusively predict an earnings beat for Calix this season. 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: Calix’s Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00% as both are pegged at 34 cents.

Calix, Inc Price and EPS Surprise

Calix, Inc Price and EPS Surprise

Calix, Inc price-eps-surprise | Calix, Inc Quote

Zacks Rank: Calix currently carries a Zacks Rank #3.

Stocks to Consider

Here are some companies that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:

United Rentals, Inc. (URI - Free Report) is slated to release fourth-quarter 2020 results on Jan 27. It has an Earnings ESP of +10.34% and carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

TE Connectivity Ltd. (TEL - Free Report) is scheduled to release first-quarter fiscal 2021 results on Jan 27. The company has an Earnings ESP of +0.85% and carries a Zacks Rank #2.

MarketAxess Holdings Inc. (MKTX - Free Report) has an Earnings ESP of +0.79% and a Zacks Rank of 2. The company is set to report fourth-quarter 2020 results on Jan 27.

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