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Will Higher Revenues Benefit Clearfield (CLFD) Q4 Earnings?

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Clearfield, Inc. (CLFD - Free Report) is scheduled to report fourth-quarter fiscal 2022 results on Nov 17 after the market closes. In the last reported quarter, the company delivered an earnings surprise of 37.3%. It pulled off a trailing four-quarter earnings surprise of 33.9%, on average. The company is expected to have recorded year-over-year higher revenues due to increased broadband demand.

Factors at Play

In the fiscal fourth quarter, Clearfield launched CraftSmart FiberFirst Pedestal, the industry’s first pedestal designed to support fiber-only deployments. The product is deployable in any outdoor environment and ideal for operators looking to deploy broadband in rural markets in a cost-effective, non-metallic enclosure. Its high-strength, rigid construction ensures long-term reliability in the harshest environments and supports a wide variety of service networks, eliminating the need for multiple, specialty pedestals. This is likely to be reflected in the upcoming results.

In the fiscal fourth quarter, the company closed the acquisition of Finland-based firm Nestor Cables Ltd., a leading developer and manufacturer of fiber optic cable solutions. Clearfield expects the acquisition to be accretive to earnings.

For the September quarter, the Zacks Consensus Estimate for total revenues is pegged at $69 million, which indicates growth from the year-ago quarter’s reported figure of $45 million. The consensus estimate for adjusted earnings per share stands at 80 cents, suggesting an increase from 53 cents reported a year ago.

Earnings Whispers

Our proven model does not predict an earnings beat for Clearfield in the fourth quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here.

Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00%, with both pegged at 80 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Clearfield, Inc. Price and EPS Surprise

Clearfield, Inc. Price and EPS Surprise

Clearfield, Inc. price-eps-surprise | Clearfield, Inc. Quote

Zacks Rank: Clearfield has a Zacks Rank #3.

Stocks to Consider

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

Zoom Video Communications, Inc. (ZM - Free Report) is set to release quarterly numbers on Nov 21. It has an Earnings ESP of +0.27% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Earnings ESP for Intuit Inc. (INTU - Free Report) is +3.15% and it carries a Zacks Rank of 3. The company is set to report quarterly numbers on Nov 29.

The Earnings ESP for Okta, Inc. (OKTA - Free Report) is +3.16% and it carries a Zacks Rank of 3. The company is scheduled to report quarterly numbers on Nov 30.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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