The overall earnings scenario has been quite encouraging this season. With most of the companies having already announced their quarterly numbers, this quarter is on track to be the first quarter of positive earnings growth after five consecutive quarters of decline. With key players scheduled to report earnings this week, our latest Earnings Preview now predicts earnings growth of 3% year over year on 1.5% higher revenues. Moreover, we expect the trend to continue in the upcoming quarters.
Let us take a look at some telecom stocks that are expected to post their quarterly numbers on Nov 10.
Acacia Communications, Inc. (ACIA - Free Report) designs, develops, manufactures and markets communication equipment. This Zacks Rank #1 (Strong Buy) stock will be posting its third-quarter 2016 results. You can see the complete list of today’s Zacks #1 Rank stocks here.
Meanwhile, Acacia Communications has an Earnings ESP of 0.00%.This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 70 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 (Hold) or better – to increase the odds of an earnings surprise. Thus, Acacia Communications is not likely to beat the Zacks Consensus Estimate this quarter. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Clearfield, Inc. (CLFD - Free Report) , designer and manufacturer of the FieldSmart fiber management platform, will report fourth-quarter fiscal 2016 results. Clearfield has a combination of a Zacks Rank #3 and an Earnings ESP of 0.00% (the Most Accurate estimate and Zacks Consensus Estimate are at 12 cents). Though the company’s Zacks Rank #3 increases the predictive power of ESP, its 0.00% ESP makes surprise prediction difficult.
NII Holdings Inc. provides differentiated mobile communication services for businesses and consumers under the Nextel brand primarily in Brazil and Argentina. The company has a combination of a Zacks Rank #3 and an Earnings ESP of 0.00% for third-quarter 2016. This is because both Most Accurate estimate and the Zacks Consensus Estimate are pegged at a loss of 41 cents. The combination dims the chances of a beat for NII Holdings.
Now See Our Private Investment Ideas
While the above ideas are being shared with the public, other trades are hidden from everyone but selected members. Would you like to peek behind the curtain and view them? Starting today, for the next month, you can follow all Zacks' private buys and sells in real time from value to momentum . . . from stocks under $10 to ETF and option moves . . . from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors. Click here for Zacks' secret trades >>