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Telecom Service Earnings Releases on Aug 2: IQNT, SITO, TNAV

As we get into the thick of the earnings season, forecasts of a negative earnings growth still remains the primary concern though the actual results are not as dreary as the initial predictions. The pace of the growth is improving despite the presumption of a negative earnings growth. As per the recent Earnings Preview , total S&P 500 earnings are expected to decline by 3.4% on the back of 0.4% lower revenues. Additionally, growth estimates of third-quarter 2016 are starting to lean into the negative as well. However, we anticipate a change in the last quarter of the year with expectations of growth in earnings to pick up and get even better going forward into fiscal 2017.

Telecom Stocks in Focus

The U.S. telecommunications industry is anticipated to observe reasonable growth through 2016. This industry has lately emerged as an intensely contested space where the key catalysts to success are technical superiority, the quality of services and scalability. Despite fierce competition, an uninterrupted advancement in telecom technologies has aided the telecom operators and equipment manufacturers to adopt newer business models in order to improve revenues.

Let us look at some of the stocks related to the telecom sector that are due to report their earnings on Aug 2.

Inteliquent, Inc.IQNT provides voice, Internet protocol transit and Ethernet solutions to carriers, service providers and content management firms. The company carries a Zacks Rank #3 (Hold) and an Earnings ESP of 0.00%. This is because both Most Accurate estimate and the Zacks Consensus Estimate are pegged at 28 cents. According to our quantitative 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, Inteliquent doesn't conclusively show that it is likely to beat the Zacks Consensus Estimate this quarter.

INTELIQUENT INC Price and EPS Surprise

INTELIQUENT INC Price and EPS Surprise | INTELIQUENT INC Quote

SITO Mobile, Ltd.SITO is a technology based mobile solutions provider. SITO Mobile has a combination of Zacks Rank #3 and an Earnings ESP of 0.00%. This is because both Most Accurate estimate and the Zacks Consensus Estimate are pegged at a loss of 5 cents. Although Zacks Rank #3 increases the predictive power of ESP, we need a positive Earnings ESP to be confident of an earnings beat and hence SITO Mobile doesn't conclusively show that it is likely to beat the Zacks Consensus Estimate this quarter.

SITO MOBILE LTD Price and EPS Surprise

SITO MOBILE LTD Price and EPS Surprise | SITO MOBILE LTD Quote

Telenav, Inc.TNAV is a provider of location based services, or LBS, including voice guided navigation, on mobile phones. Telenav has a combination of a Zacks Rank #3 and an Earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at a loss of 24 cents. Although Zacks Rank #3 increases the predictive power of ESP, we need a positive Earnings ESP to be confident of an earnings beat.

TELENAV INC Price and EPS Surprise

TELENAV INC Price and EPS Surprise | TELENAV INC Quote

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TELENAV INC (TNAV): Free Stock Analysis Report

SITO MOBILE LTD (SITO): Free Stock Analysis Report

INTELIQUENT INC (IQNT): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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