Telecom Stock Earnings On Nov 3: ANET, COMM, QRVO, SWKS

The third-quarter 2016 earnings season has already seen a plethora of releases, with most companies surpassing estimates. Moreover, earnings, which were initially projected to be negative, are now in the green zone. As per our latest Earnings Outlook, third-quarter earnings are expected to rise 2.1% from the same period last year buoyed by 1.4% higher revenues. Given the rosy earnings picture, this earnings season is on track to be the first quarter to see positive earnings growth after five consecutive quarters of decline. Moreover, we expect the trend to continue in the upcoming quarters. However, on the flipside, the year-over-year growth estimates for the fourth quarter have been revised lower to 2.9% as against 4.9% estimated last week.

Telecom Stocks’ Earnings in Focus

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 look at four telecom stocks which are scheduled to report their quarterly numbers on Nov 3.

Arista Networks, Inc. (NYSE:ANET) provides cloud networking solutions in datacentre and cloud computing environments. This Zacks Rank #3 (Hold) stock will be posting its third-quarter 2016 results. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Arista Networks has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 59 cents. 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, Arista Networks is not likely to beat the Zacks Consensus Estimate this quarter.

CommScope Holding Company, Inc. (NASDAQ:COMM) , a premier network infrastructure provider, will report third-quarter 2016 results. The company has a combination of a Zacks Rank #3 and an earnings ESP of 0.00% (both the Most Accurate estimate and the Zacks Consensus Estimate are at 69 cents). Though the company’s Zacks Rank #3 increases the predictive power of ESP, its 0.00% ESP makes surprise prediction difficult.

Qorvo, Inc. (NASDAQ:QRVO) is a provider of technologies and RF solutions for mobile, infrastructure and aerospace/defence applications. The company is expected to report second-quarter fiscal 2016 financial numbers. Qorvo has a Zacks Rank #3 and an earnings ESP of 0.00% (both Most Accurate estimate and Zacks Consensus Estimate are pegged at $1.19). The combination doesn’t predict an earnings beat for Qorvo in the quarter (Read more: Qorvo Q2 Earnings: What's in the Cards this Time?).

Skyworks Solutions Inc. (NASDAQ:SWKS) ,a leading wireless semiconductor company, will report first-quarter fiscal 2017 results. The company has a Zacks Rank #3 and an earnings ESP of 0.00% (both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at $1.33). Skyworks Solutions’ combination doesn’t make it likely to beat the estimates this quarter (read more: Skyworks Solutions Q4 Earnings: What's in Store?).

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