The third-quarter 2016 earnings season has already seen releases from a large number of companies, with most reporting better-than-expected numbers. Moreover, earnings growth expectation – which was initially perceived to be negative – is now in the green zone. As per our latest Earnings Outlook, total third-quarter earnings are now expected to be up 2.1% from the same period last year on the back of 1.4% higher revenues. Given the rosy earnings picture, this earnings season is on track to be the first quarter to record positive earnings growth after five quarters of back-to-back declines. Moreover, we expect the trend to continue in the upcoming quarters.
While the initial fears of continued ‘earnings recession’ are gradually dissipating, let us take a look at some of the stocks in the telecom sector that are expected to report their quarterly numbers on Nov 3.
Motorola Solutions, Inc. (NYSE:MSI) is engaged in providing communication equipment, software and services. This Zacks Rank #3 (Hold) stock will be posting its third-quarter fiscal 2016 results. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Motorola Solutions has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at $1.14. Please check our Earnings ESP Filterthat enables you to find stocks that are expected to come out with earnings surprises.
Meanwhile, according to our proven model, a company needs the right combination of two key ingredients – a positive earnings ESP and a Zacks Rank #3 or better – to increase the odds of an earnings surprise. Thus, we cannot conclusively predict an earnings beat for Motorola Solutions this quarter (read more: Motorola Solutions Q3 Earnings: A Surprise in Store?)
Ubiquiti Networks, Inc. (NASDAQ:UBNT) ,a global broadband wireless solutions company, is slated to report first-quarter fiscal 2017 results. The company has a combination of a Zacks Rank #3 and an earnings ESP of 0.00% (Most Accurate estimate and Zacks Consensus Estimate at 65 cents). Though the company’s Zacks Rank #3 increases the predictive power of ESP, its 0.00% ESP makes surprise prediction difficult.
Mitel Networks Corporation (NASDAQ:MITL) is a provider of integrated communications solutions focused on the SME market. Slated to report its third-quarter 2016 figures, the company has a combination of a Zacks Rank #3 and an earnings ESP of 0.00% (Most Accurate estimate and Zacks Consensus Estimate pegged at a loss of 3 cents). Again, the combination doesn’t make it likely for the company to beat estimates.
Sierra Wireless Inc. (NASDAQ:SWIR) is a leading provider of wireless data communications products. The company also has a combination of Zacks Rank #3 and an earnings ESP of 0.00% for third-quarter 2016. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 4 cents. However, the combination of a Zacks Rank #3 and earnings ESP of 0.00% doesn’t hint at a beat for Sierra Wireless.
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 >>
MITEL NETWORKS (MITL): Free Stock Analysis Report
SIERRA WIRELESS (SWIR): Free Stock Analysis Report
MOTOROLA SOLUTN (MSI): Free Stock Analysis Report
UBIQUITI NETWRK (UBNT): Free Stock Analysis Report
Original post