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What's in Store for Universal Electronics (UEIC) Q4 Earnings?

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Universal Electronics Inc. (UEIC - Free Report) is scheduled to report fourth-quarter 2019 results on Feb 20.

For the fourth quarter, the company expects net sales between $173 million and $183 million on both GAAP and non-GAAP basis. The Zacks Consensus Estimate for sales is pegged at $177.2 million, indicating growth of 4.05% from the prior-year quarter.

Further, the company anticipates adjusted earnings between 79 cents and 89 cents per share. The consensus mark for earnings per share is pegged at 83 cents per share, which suggests an improvement of 18.6% from the year-ago quarter.

The company surpassed the Zacks Consensus Estimate in three of the trailing four quarters by 9.19%, on average.

Universal Electronics Inc. Price and EPS Surprise

 

Universal Electronics Inc. Price and EPS Surprise

Universal Electronics Inc. price-eps-surprise | Universal Electronics Inc. Quote

 

Factor to Consider

The company’s exposure to home entertainment and home control spaces is likely to have contributed to the fourth-quarter results driven by innovative wireless control technology.

Moreover, strengthening presence in the smart home market on the back of its robust sensing technologies is likely to have driven the fourth-quarter performance.

The company is likely to have witnessed strong performance by its home entertainment control product category in the quarter under review owing to growing momentum of its voice enabled RF products in the home automations and telecom markets.

We believe all these are likely to have aided the company in gaining momentum across home entertainment and automation companies in the to-be-reported quarter.

Apart from these, large service providers who are advancing their platforms, are expected to have aided the performance of Universal Electronics’ subscription broadcasting channel during the fourth quarter.

Further, ongoing integration of over-the-top services into traditional linear television globally is likely to have acted as tailwind. This, in turn, is likely to have driven the company’s momentum in its core subscription broadcasting and consumer electronics channels.

Additionally, the company’s expanding QuickSet licensing to existing and new accounts is anticipated to have contributed to consumer electronic sales in the quarter under review.

However, tariff imposition as a result of U.S.-China trade war, mounting manufacturing overhead and factory transition costs and increasing investment costs are likely to have affected the company’s fourth-quarter results.

What Our Model Says

Our proven model doesn’t conclusively predict an earnings beat for Universal Electronics this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Universal Electronics has an Earnings ESP of 0.00% and a Zacks Rank #3.

Stocks to Consider

Here are some stocks you may consider, as our proven model shows that these have the right combination of elements to post an earnings beat this quarter.
 
Broadcom Inc. (AVGO - Free Report) has an Earnings ESP of +1.72% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Square, Inc. (SQ - Free Report) has an Earnings ESP of +3.59% and a Zacks Rank #3.

Applied Optoelectronics, Inc. (AAOI - Free Report) has an Earnings ESP of +8.12% and a Zacks Rank #3.

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