Satellite Communication Q3 Earnings On Nov 8: SATS & LSXMA

The third-quarter earnings season is approaching its end with reports from 84.6% of the S&P 500 companies already out as of Nov 4 (per the latest Earnings Outlook report). The outcome of the season so far has given a decent growth picture, breaking the five-quarter-long lackluster trend. Clearly, this period is quite significant with both earnings and revenues on the growth trajectory.

Per our latest Earnings Outlook, out of the 423 S&P 500 companies that have come up with their quarterly numbers, approximately 72.8% posted positive earnings surprises, while 55.1% beat top-line expectations. According to the report, earnings for the 423 S&P 500 companies that have reported so far are up 3.6% from the same period last year, while revenues have also increased 2.4%.

Satellite Communications Stocks’ Earnings in Focus

The satellite Communications industry, which comprises satellite linkup, satellite TV and satellite radio services, is part of the widely diversified Computer &Technology sector. Companies operating in this space are anticipated to benefit from continuous technological advancement and adoption of newer business models.

Per the latest report, in the third-quarter earnings season, nearly 73.8% of the Computer & Technology companies have already reported their third-quarter results, out of which 82.2% beat earnings and 75.6% surpassed revenue estimates. Total earnings for these companies climbed 5% while revenues increased 2.5% year over year.

Let’s take a look at two satellite communications stocks that are scheduled to report their third-quarter numbers on Nov 8.

EchoStar Corp. (NASDAQ:SATS) : The company is a developer and distributer of set-top boxes and related products for direct-to-home satellite service providers. This company carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

EchoStar has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 39 cents per share. Please check our Earnings ESP Filter that 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, EchoStar is unlikely to beat the Zacks Consensus Estimate this quarter.

The Liberty SiriusXM Group (NASDAQ:LSXMA) : The Liberty SiriusXM Group provides satellite radio services consists of commercial-free music, sports, news, talk, entertainment, traffic and weather. The company currently carries a Zacks Rank #4 (Sell).

Meanwhile, The Liberty SiriusXM Group has an Earnings ESP of +9.09%. The Most Accurate estimate is 36 cents while the Zacks Consensus Estimate is pegged lower at 33 cents. However, a Zacks Rank #4 coupled with a positive earnings ESP makes surprise prediction difficult. Therefore, The Liberty SiriusXM Group is unlikely to beat the Zacks Consensus Estimate this quarter.

Confidential: Zacks' Best Investment Ideas

Would you like to see a hand-picked "all-star" selection of investment ideas from the man who heads up Zacks' trading and investing services? Steve Reitmeister knows when key trades are about to be triggered and which of our experts has the hottest hand. Click for his selected trades right now >>