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Telecom Stock Earnings Roster for Nov 7: VSAT, COMM & CCOI

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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% 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 Nov 7.

According to the Zacks 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Viasat, Inc. (VSAT - Free Report) is scheduled to report second-quarter fiscal 2020 results after the closing bell. The Zacks Consensus Estimate for revenues of $569 million indicates a 10.1% rise from the year-ago reported figure. The consensus estimate is pegged at a loss of 12 cents per share, suggesting a 70% improvement.

Our proven model does not conclusively predict an earnings beat for Viasat this time around. Viasat currently has a Zacks Rank #3 and an Earnings ESP of 0.00%.

Viasat Inc. Price and EPS Surprise


CommScope Holding Company, Inc. (COMM - Free Report) is set to report third-quarter 2019 financial results before the opening bell. The Zacks Consensus Estimate for revenues stands at $2,428 million, which indicates a rise of 111.1% from the year-ago quarter’s reported figure. The consensus estimate for earnings is pegged at 45 cents per share, suggesting a year-over-year decline of 23.7%.

CommScope has an Earnings ESP of 0.00% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

CommScope Holding Company, Inc. Price and EPS Surprise


Cogent Communications Holdings, Inc. (CCOI - Free Report) is scheduled to report third-quarter 2019 results before the opening bell. The Zacks Consensus Estimate for earnings is pegged at 18 cents per share, which indicates no change from the year-ago quarter reported figure. The consensus estimate for revenues stands at $137 million, indicating an increase of 5.4% from the year-ago quarter’s reported figure.

Cogent Communications has an Earnings ESP of +4.11% and a Zacks Rank #3.

Cogent Communications Holdings, Inc. Price and EPS Surprise

Check back later for our full write-up on earnings releases of these stocks.

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Viasat Inc. (VSAT) - free report >>

CommScope Holding Company, Inc. (COMM) - free report >>

Cogent Communications Holdings, Inc. (CCOI) - free report >>

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