Latin American telecom carrier
NII Holdings Inc.
) is set to release its second-quarter 2013 results before the
market opens on Aug 1, 2013.
In the last quarter, the company delivered a 2.94% positive
earnings surprise. Let's see how things are shaping up for this
Factors to be Considered This Quarter
Stiff competition in the Latin American market remains the
primary cause of concern for NIHD. While key competitors like
Telefonica and America Movil are aggressively deploying
next-generation wireless technologies in major Latin American
markets, NIHD lags far behind in network deployment. High debt
burden, increased promotional expenses and foreign exchange
fluctuation remains other near-term concerns for NIHD.
However, NIHD combined with Motorola Mobility to launch Atrix
HD smartphones in Mexico, which is preloaded with NIHD's PTT
service. NIHD's Mexico customers will be able to enjoy the PTT
service using a high-end smartphone. This will be a new source of
revenue for the company.
Our proven model does not conclusively show that NIHD is
likely to beat the Zacks Consensus Estimate this quarter. That is
because a stock needs to have both a positive Expected Surprise
Prediction (ESP) (Read:
Zacks Earnings ESP: A Better Method
) and Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) for this
to happen. Unfortunately this is not the case here as elaborated
Negative Zacks ESP:
This is because the Most Accurate estimate stands at -$1.15 while
the Zacks Consensus Estimate is lower at -$1.05. This leads to an
ESP of -9.52% for NIHD.
Zacks Rank #3 (Hold):
NIHD's Zacks Rank #3 decreases the predictive power of ESP.
We caution investors against the stock going into the earnings
announcement, as a Zacks earnings ESP of -9.52% combined with a
Zacks Rank #3 lowers the possibility of a positive earnings
Other Stocks to Consider
Here are some other companies to consider as our model shows
they have the right combination of elements to post an earnings
beat this quarter:
Cablevision Systems Corporation
) has Earnings ESP of +40.00% and carries a Zacks Rank #3
Leap Wireless International Inc.
) currently has Earnings ESP of +6.06% and holds a Zacks Rank #3
American Tower Corporation
) currently has Earnings ESP of +3.77% and holds a Zacks Rank #3
AMER TOWER CORP (AMT): Free Stock Analysis
CABLEVISION SYS (CVC): Free Stock Analysis
LEAP WIRELESS (LEAP): Free Stock Analysis
NII HLDGS-CL B (NIHD): Free Stock Analysis
To read this article on Zacks.com click here.