The earnings season is in full swing and the overall earnings scenario is not very encouraging so far. Although it is still too early to predict a clear picture, as more companies come up with quarterly numbers, we believe that this might end up being the fifth consecutive quarter of an earnings decline. With the key players scheduled to report earnings this week, the recent Zacks Earnings trend anticipates total S&P 500 earnings to be down 3.4% due to 0.5% lower revenues, with 9 of the 16 Zacks sectors crossing over to the negative territory.
Telecom Stocks Earnings in Focus
The telecom industry is part of the broader Computer & Technology sector. As per our Earnings trend report, earnings for this sector are expected to witness a 3% year-over-year decline this quarter. The telecom industry, which comprises telecom operators and equipment manufacturers, is projected to witness modest growth in 2016. However, companies operating in this space are anticipated to benefit from continuous technological advancement and adoption of newer business models.
Let’s take a peek at four such telecom stocks, all of which are scheduled to report quarterly results on Jul 26.
AudioCodes Ltd. (NASDAQ:AUDC) designs, develops and markets enabling technologies and communication components. The stock has a Zacks Rank #3 (Hold) and an Earnings ESP of 0.00%. We remind our investors that the combination of a Zacks Rank #3 or better and a positive Earnings ESP makes us reasonably confident of an earnings beat. Thus, the combination of AudioCodes’ Zacks Rank #3 and 0.00% ESP makes surprise prediction difficult.
Juniper Networks Inc. (NYSE:JNPR) is a provider of Internet infrastructure solutions. The company has a Zacks Rank #3 and a 0.00% ESP, which makes surprise prediction difficult. (Read more: Juniper Networks Q2 Earnings: Stock to Surprise?)
Knowles Corporation (NYSE:KN) operates as a supplier of advanced micro-acoustic, specialty components, and human interface solutions. This Zacks Rank #3 (Hold) company has an Earnings ESP of 0.00%. Our proven model does not conclusively show that , Knowles is likely to beat the Zacks Consensus Estimate this quarter.
Verizon Communications Inc. (NYSE:VZ) is a premier communications company in the U.S. This Zacks Rank #3 (Hold) stock has an Earnings ESP of -3.19%. The combination of a a Zacks Rank #3 and a negative ESP does not conclusively show that the stock is likely to beat the Zacks Consensus Estimate this quarter. (Read more: Can Verizon Spring a Surprise this Earnings Season?)
JUNIPER NETWRKS (JNPR): Free Stock Analysis Report
AUDIOCODES LTD (AUDC): Free Stock Analysis Report
KNOWLES CORP (KN): Free Stock Analysis Report
VERIZON COMM (VZ): Free Stock Analysis Report
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Zacks Investment Research