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Telecom Stocks to Watch for Earnings: HIVE, JCS, CTL, FRP
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The quarterly earnings are past the mid-way with 317 S&P 500 members having already reported their quarterly financial results as of Jul 29, 2016. As per the recent Earnings Preview, total S&P 500 earnings are estimated to decline by 3.4% on the back of 0.4% lower revenues. Additionally, growth estimates of third-quarter 2016 are starting to lean into the negative as well – emphasizing the fact that we are still in an earnings recession. However, we anticipate a change in the last quarter of the year with expectations of growth in earnings to pick up and get even better going forward into fiscal 2017.
Telecom Stocks Earnings to Date:
The telecom industry is a part of the broader Computer & Technology sector. As per our Earnings Preview report, earnings for this sector are down 0.9% year over year. However, if we condense it down to just the telecom industry – which comprises telecom operators and equipment manufacturers, we are likely to witness reasonable growth through 2016. This is evident from this quarter’s performance by telecom players. Telecom service providers’ have clocked 6% year-over-year earnings growth while telecom equipment has witnessed growth of 1.3% year over year to date. We believe that continuous advancement in technologies and adoption of newer business models are aiding this industry to improve its revenues.
We focus on three telecom stocks that are scheduled to report their quarterly results on Aug 3.
Aerohive Networks, Inc. (HIVE - Free Report) designs and develops a cloud-managed mobile networking platform that enables enterprises to deploy a mobile-centric network edge. The company carries a Zacks Rank #3 (Hold) and an Earnings ESP of 0.00%. This is because both Most Accurate estimate and the Zacks Consensus Estimate are pegged at a loss of 16 cents. According to our proven model, a company needs the right combination of two key ingredients – a positive Earnings ESP and a Zacks Rank #3 or better – to increase the odds of an earnings surprise. Thus, Aerohive doesn’t conclusively show that it is likely to beat the Zacks Consensus Estimate this quarter.
Communications Systems Inc. manufactures and markets connectors and wiring devices for voice, data and video communications. The company has a combination of Zacks Rank #3 and an Earnings ESP of 0.00%. This is because both Most Accurate estimate and the Zacks Consensus Estimate are pegged at a loss of 17 cents. Although Zacks Rank #3 increases the predictive power of ESP, we need a positive Earnings ESP to be confident of an earnings beat and hence Communications Systems doesn’t conclusively show that it is likely to beat the Zacks Consensus Estimate this quarter.
CenturyLink, Inc. is a telecommunications company that provides broadband, voice and wireless services to consumers and businesses in the U.S. CenturyLink has a combination of of Zacks Rank #3 and an Earnings ESP of 1.70%. This is because the Most Accurate estimate currently stands at 60 cents while the broader Zacks Consensus Estimate is pegged at 59 cents. CenturyLink’s combination of Zacks Rank #3 and a positive ESP makes us confident of an earnings beat this quarter. (Read more: CenturyLink Likely to Beat Q2 Earnings: Stock to Gain?)
FairPoint Communications, Inc. operates as a provider of communications services to rural and small urban communities in the U.S. FairPoint has a combination of Zacks Rank #3 and an Earnings ESP of 0.00%. This is because both Most Accurate estimate and the Zacks Consensus Estimate are pegged at $1.30. Although Zacks Rank #3 increases the predictive power of ESP, we need a positive Earnings ESP to be confident of an earnings beat and hence FairPoint doesn’t conclusively show that it is likely to beat the Zacks Consensus Estimate this quarter.
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Telecom Stocks to Watch for Earnings: HIVE, JCS, CTL, FRP
The quarterly earnings are past the mid-way with 317 S&P 500 members having already reported their quarterly financial results as of Jul 29, 2016. As per the recent Earnings Preview, total S&P 500 earnings are estimated to decline by 3.4% on the back of 0.4% lower revenues. Additionally, growth estimates of third-quarter 2016 are starting to lean into the negative as well – emphasizing the fact that we are still in an earnings recession. However, we anticipate a change in the last quarter of the year with expectations of growth in earnings to pick up and get even better going forward into fiscal 2017.
Telecom Stocks Earnings to Date:
The telecom industry is a part of the broader Computer & Technology sector. As per our Earnings Preview report, earnings for this sector are down 0.9% year over year. However, if we condense it down to just the telecom industry – which comprises telecom operators and equipment manufacturers, we are likely to witness reasonable growth through 2016. This is evident from this quarter’s performance by telecom players. Telecom service providers’ have clocked 6% year-over-year earnings growth while telecom equipment has witnessed growth of 1.3% year over year to date. We believe that continuous advancement in technologies and adoption of newer business models are aiding this industry to improve its revenues.
We focus on three telecom stocks that are scheduled to report their quarterly results on Aug 3.
Aerohive Networks, Inc. (HIVE - Free Report) designs and develops a cloud-managed mobile networking platform that enables enterprises to deploy a mobile-centric network edge. The company carries a Zacks Rank #3 (Hold) and an Earnings ESP of 0.00%. This is because both Most Accurate estimate and the Zacks Consensus Estimate are pegged at a loss of 16 cents. According to our proven model, a company needs the right combination of two key ingredients – a positive Earnings ESP and a Zacks Rank #3 or better – to increase the odds of an earnings surprise. Thus, Aerohive doesn’t conclusively show that it is likely to beat the Zacks Consensus Estimate this quarter.
AEROHIVE NETWRK Price and EPS Surprise
AEROHIVE NETWRK Price and EPS Surprise | AEROHIVE NETWRK Quote
Communications Systems Inc. manufactures and markets connectors and wiring devices for voice, data and video communications. The company has a combination of Zacks Rank #3 and an Earnings ESP of 0.00%. This is because both Most Accurate estimate and the Zacks Consensus Estimate are pegged at a loss of 17 cents. Although Zacks Rank #3 increases the predictive power of ESP, we need a positive Earnings ESP to be confident of an earnings beat and hence Communications Systems doesn’t conclusively show that it is likely to beat the Zacks Consensus Estimate this quarter.
COMMUN SYS INC Price and EPS Surprise
COMMUN SYS INC Price and EPS Surprise | COMMUN SYS INC Quote
CenturyLink, Inc. is a telecommunications company that provides broadband, voice and wireless services to consumers and businesses in the U.S. CenturyLink has a combination of of Zacks Rank #3 and an Earnings ESP of 1.70%. This is because the Most Accurate estimate currently stands at 60 cents while the broader Zacks Consensus Estimate is pegged at 59 cents. CenturyLink’s combination of Zacks Rank #3 and a positive ESP makes us confident of an earnings beat this quarter. (Read more: CenturyLink Likely to Beat Q2 Earnings: Stock to Gain?)
CENTURYLINK INC Price and EPS Surprise
CENTURYLINK INC Price and EPS Surprise | CENTURYLINK INC Quote
FairPoint Communications, Inc. operates as a provider of communications services to rural and small urban communities in the U.S. FairPoint has a combination of Zacks Rank #3 and an Earnings ESP of 0.00%. This is because both Most Accurate estimate and the Zacks Consensus Estimate are pegged at $1.30. Although Zacks Rank #3 increases the predictive power of ESP, we need a positive Earnings ESP to be confident of an earnings beat and hence FairPoint doesn’t conclusively show that it is likely to beat the Zacks Consensus Estimate this quarter.
FAIRPOINT COMM Price and EPS Surprise
FAIRPOINT COMM Price and EPS Surprise | FAIRPOINT COMM Quote
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