Harmonic Inc. HLIT recently announced that PCCW Media Limited — a subsidiary of Hong Kong-based PCCW Limited — is using its UHD HDR solution to deliver 4K live coverage of popular sports events. Impressively, Harmonic's ViBE CP9000 contribution solution, Electra platform as well as RD9000 UHD HEVC contribution decoder simplifies operations for PCCW Media Limited's partners besides offering better video quality and maximizing bandwidth efficiency.
Nowadays, content providers and pay-TV operators are required to deliver high-quality video on devices while keeping their capital and operational costs low. Keeping pace with this trend, Harmonic’s solution enables operators to deliver high video quality for subscribers of its over-the-top multiscreen services. Notably, Now TV — one of the largest pay-TV provider in Hong Kong — depends on Harmonic's UHD HDR solution to offer superior video quality with greater bandwidth efficiency to viewers.
Moreover, it should be noted that operator's ability to deliver more HD services improves the company’s position within the marketplace and increases revenues. Harmonic looks promising on this front as well. In the past three months, this Zacks Rank #3 (Hold) company has outperformed the industry it belongs to. The stock has gained 13% compared with the industry’s 1.6% upside.
However, over the past couple of months, the company has witnessed three downward estimate revisions compared with one upward revision, reflecting bearish analyst sentiment. The Zacks Consensus Estimate for 2018 earnings moved down from 10 cents to 9 cents, over the same time frame.
Key Picks
Some better-ranked stocks from the same space are Comtech Telecommunications Corp. CMTL, Corning Incorporated GLW and Avnet, Inc. AVT. While Comtech Telecommunications sports a Zacks Rank #1 (Strong Buy), Corning and Avnet carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Comtech Telecommunications exceeded estimates in the preceding four quarters, with an average positive earnings surprise of 123.70%.
Corning surpassed estimates in the trailing four quarters, with an average positive earnings surprise of 4.37%.
Avnet outpaced estimates in the preceding four quarters, with an average earnings surprise of 7.68%.
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