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Telecom Stocks' Q2 Earnings Coming Up: NIHD, UTSI & More

With the current reporting cycle drawing to an end, overall earnings growth remains elusive. As more companies report their quarterly numbers, the predictions of this quarter being the fifth straight quarter of an earnings decline seems more pertinent. As per the recent Earnings Outlook , 454 out of the total S&P 500 companies' earnings have declined by 3.7% on 0.7% lower revenues (as of Aug 10). Also, we expect earnings for the quarter to be down 3.4% from the same period last year on 0.4% lower revenues.

Additionally, third-quarter estimates are on a downward spiral too, indicative of the fact that the earnings recession will prevail through this quarter. However, we expect the effects of this downturn to subside in the fourth quarter and meaningful earnings growth to resume thereon.

Focus on Telecom Stocks:

The telecom industry - which comprises telecom operators and equipment manufacturers - is likely to witness reasonable growth through 2016. We believe that continuous advancement in technologies and adoption of newer business models are aiding this industry in improving its revenues.

We focus on four telecom stocks that are scheduled to report their second-quarter financial results in the coming days.

NII Holdings Inc.NIHD provides differentiated mobile communication services for businesses and consumers. The company has a Zacks Rank #3 (Hold) 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 83 cents. 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, NII Holdings doesn't conclusively show that it is likely to beat the Zacks Consensus Estimate this quarter.

NII HOLDINGS Price and EPS Surprise

NII HOLDINGS Price and EPS Surprise | NII HOLDINGS Quote

UTStarcom Holdings Corp.UTSI is engaged in providing interactive Protocol based network solutions.The company has a combination of Zacks Rank #3 and an Earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at a loss of 8 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 UTStarcom doesn't conclusively show that it is likely to beat the Zacks Consensus Estimate this quarter.

UTSTARCOM HLDGS Price and EPS Surprise

UTSTARCOM HLDGS Price and EPS Surprise | UTSTARCOM HLDGS Quote

Parkervision Inc. PRKR is a video and wireless technology service provider. This Zacks Rank #3 stock has an Earnings ESP of 0.00%. Such a combination is insufficient for an earnings beat this quarter.

PARKERVISION Price and EPS Surprise

PARKERVISION Price and EPS Surprise | PARKERVISION 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 the Most Accurate estimate and the Zacks Consensus Estimate are pegged at a loss of 4 cents. As stated earlier, 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

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PARKERVISION (PRKR): Free Stock Analysis Report

SITO MOBILE LTD (SITO): Free Stock Analysis Report

NII HOLDINGS (NIHD): Get Free Report

UTSTARCOM HLDGS (UTSI): 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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