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Telecom Stocks Earnings Roster for Oct 31: ANET, QRVO, IDCC
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The Technology sector, of which Telecom is an integral part, is likely to be a major drag on overall third-quarter earnings. The sector is expected to have taken a beating from the on-again-off-again trade war skirmishes that sent confusing signals to the market. Sector revenues, particularly within the chip industry, are expected to have declined significantly as the market bore the brunt of tariffs and counter tariffs, awaiting the elusive trade deal.
Moreover, various trade restrictions on grounds of national security concerns hampered the supply chain mechanism of the companies and eroded sector margins. In addition, higher infrastructure investments are expected to have escalated operating costs as 5G deployments picked up pace across the United States.
The Technology sector is the biggest earnings contributor in the S&P 500 Index, bringing in 22.9% of the index’s total earnings in forward four-quarter period. Per the latest Earnings Outlook, overall earnings for the Technology sector for the quarter are expected to be down 8.5% year over year. This compares unfavorably with the prior-quarter decline of 6.3%.
Let’s take a look at three Telecom stocks that are slated to report results for the September quarter on Oct 31.
Arista Networks, Inc. (ANET - Free Report) is scheduled to report third-quarter 2019 results after the closing bell. The Zacks Consensus Estimate for revenues of $653 million indicates a 16% improvement from the year-ago reported number. The consensus estimate for earnings per share is pegged at $2.44, indicating a 15.6% rise.
Our proven model does not predict an earnings beat for Arista this time around. 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.
Arista has a Zacks Rank #4 (Sell) and Earnings ESP of -0.07%.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
As part of its cognitive management plane framework, Arista launched CloudVision 2019 during the quarter. This is likely to have generated additional revenues for the company in the third quarter. (Read More: Can Healthy Top-Line Growth Drive Arista Q3 Earnings?)
Qorvo, Inc. (QRVO - Free Report) is set to report second-quarter fiscal 2020 financial results after the closing bell. The Zacks Consensus Estimate for revenues stands at $754.4 million, which indicates a decline of 14.7% from the year-ago quarter’s reported figure. The consensus estimate for earnings is pegged at $1.30 per share, representing a year-over-year decline of 25.7%.
Solid demand for Qorvo’s performance-tier for RF Fusion-based solutions is likely to have driven its top line in the to-be-reported quarter. Also, the quarterly results are expected to reflect benefits from antenna tuning, discrete components and Bulk Acoustic Wave based multiplexers. (Read More: Qorvo Gears Up for Q2 Earnings: What's in Store?)
InterDigital, Inc. (IDCC - Free Report) is scheduled to report third-quarter 2019 results before the opening bell. The Zacks Consensus Estimate is pegged at a loss of 20 cents per share, indicating 133.3% decline year over year. The consensus estimate for revenues stands at $73 million, down 2.7%.
InterDigital has an Earnings ESP of 0.00% and Zacks Rank #3.
Continued tensions between the United States and China owing to trade restrictions imposed on the sales of communication equipment and technology solutions to Chinese firms are likely to have hurt the industry's credibility and induced loss for InterDigital businesses.
Check back later for our full write-up on earnings releases of these stocks.
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This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
Image: Bigstock
Telecom Stocks Earnings Roster for Oct 31: ANET, QRVO, IDCC
The Technology sector, of which Telecom is an integral part, is likely to be a major drag on overall third-quarter earnings. The sector is expected to have taken a beating from the on-again-off-again trade war skirmishes that sent confusing signals to the market. Sector revenues, particularly within the chip industry, are expected to have declined significantly as the market bore the brunt of tariffs and counter tariffs, awaiting the elusive trade deal.
Moreover, various trade restrictions on grounds of national security concerns hampered the supply chain mechanism of the companies and eroded sector margins. In addition, higher infrastructure investments are expected to have escalated operating costs as 5G deployments picked up pace across the United States.
The Technology sector is the biggest earnings contributor in the S&P 500 Index, bringing in 22.9% of the index’s total earnings in forward four-quarter period. Per the latest Earnings Outlook, overall earnings for the Technology sector for the quarter are expected to be down 8.5% year over year. This compares unfavorably with the prior-quarter decline of 6.3%.
Let’s take a look at three Telecom stocks that are slated to report results for the September quarter on Oct 31.
Arista Networks, Inc. (ANET - Free Report) is scheduled to report third-quarter 2019 results after the closing bell. The Zacks Consensus Estimate for revenues of $653 million indicates a 16% improvement from the year-ago reported number. The consensus estimate for earnings per share is pegged at $2.44, indicating a 15.6% rise.
Our proven model does not predict an earnings beat for Arista this time around. 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.
Arista has a Zacks Rank #4 (Sell) and Earnings ESP of -0.07%.
Arista Networks, Inc. Price and EPS Surprise
Arista Networks, Inc. price-eps-surprise | Arista Networks, Inc. Quote
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
As part of its cognitive management plane framework, Arista launched CloudVision 2019 during the quarter. This is likely to have generated additional revenues for the company in the third quarter. (Read More: Can Healthy Top-Line Growth Drive Arista Q3 Earnings?)
Qorvo, Inc. (QRVO - Free Report) is set to report second-quarter fiscal 2020 financial results after the closing bell. The Zacks Consensus Estimate for revenues stands at $754.4 million, which indicates a decline of 14.7% from the year-ago quarter’s reported figure. The consensus estimate for earnings is pegged at $1.30 per share, representing a year-over-year decline of 25.7%.
Qorvo has an Earnings ESP of 0.00% and Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Qorvo, Inc. Price and EPS Surprise
Qorvo, Inc. price-eps-surprise | Qorvo, Inc. Quote
Solid demand for Qorvo’s performance-tier for RF Fusion-based solutions is likely to have driven its top line in the to-be-reported quarter. Also, the quarterly results are expected to reflect benefits from antenna tuning, discrete components and Bulk Acoustic Wave based multiplexers. (Read More: Qorvo Gears Up for Q2 Earnings: What's in Store?)
InterDigital, Inc. (IDCC - Free Report) is scheduled to report third-quarter 2019 results before the opening bell. The Zacks Consensus Estimate is pegged at a loss of 20 cents per share, indicating 133.3% decline year over year. The consensus estimate for revenues stands at $73 million, down 2.7%.
InterDigital has an Earnings ESP of 0.00% and Zacks Rank #3.
InterDigital, Inc. Price and EPS Surprise
InterDigital, Inc. price-eps-surprise | InterDigital, Inc. Quote
Continued tensions between the United States and China owing to trade restrictions imposed on the sales of communication equipment and technology solutions to Chinese firms are likely to have hurt the industry's credibility and induced loss for InterDigital businesses.
Check back later for our full write-up on earnings releases of these stocks.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
See their latest picks free >>