Satellite communications company
), is set to release its first-quarter fiscal 2015 financial
numbers after the closing bell on Aug 12, 2014.
In the last-reported quarter, the company had delivered a
negative earnings surprise of 130.00%. Let's see how things are
shaping up for this announcement.
Factors to be Considered this Quarter
In June, the company acquired privately held Wi-Fi technology
firm NetNearU Corp. in a bid to deliver high-speed satellite and
Internet services. This acquisition is expected to drive revenues
higher in the coming quarters.
In the previous quarter, ViaSat's top-line performance was the
weakest in two years. Revenues increased 35% in the Satellite
Services segment but slid 3% in its largest segment - Government
Systems. We do not expect the top line to recover much this
quarter. Moreover, reduced government spending may hamper the
company's results in the coming quarters.
Our proven model does not conclusively show that ViaSat is
likely to beat earnings this quarter. This is because a stock needs
to have both a positive
and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) for this to
happen. Unfortunately, that is not the case here as elaborated
Zero Zacks ESP:
This is because both the Most Accurate estimate and the Zacks
Consensus Estimate are poised at 4 cents. This leads to an ESP of
0.00% for ViaSat.
ViaSat has a Zacks Rank #3 which, when combined with ESP of 0.00%
makes surprise prediction difficult.
We caution against stocks with Zacks Ranks #4 and 5 (Sell-rated
stocks) going into the earnings announcement, especially when the
company is seeing a negative estimate revision momentum.
Other Stocks to Consider
Here are some other companies to consider from among other
sectors, as our model shows they have the right combination of
elements to post an earnings beat this quarter.
La Jolla Pharmaceutical Co. (
) with Earnings ESP of +17.57% and a Zacks Rank #2.
Crescent Point Energy Corp. (
) with Earnings ESP of +28.21% and a Zacks Rank #2.
J. C. Penney Company, Inc. (
) with Earnings ESP of +14.14% and a Zacks Rank #2.
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PENNEY (JC) INC (JCP): Free Stock Analysis
VIASAT INC (VSAT): Free Stock Analysis Report
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