Canada’s leading communication service provider, BCE Inc. BCE), is slated to report its third-quarter 2015 financial numbers before the opening bell on Nov 5 .
Last quarter, BCE haddelivered a positive earnings surprise of 5.97%. Moreover, the company’s earnings have surpassed the Zacks Consensus Estimate in three of the previous four quarters, with an average beat of 4.92%. Let’s see how things are shaping up for this announcement.
Factors Likely to Influence this Quarter
BCE’s subsidiary Bell Canada has launched Gigabit Fibe to provide enhanced Internet speeds to 1.3 million homes in Ontario and Quebec, Further, the company is planning to extend its Gigabit Fibe service to around 2.2 million homes by the end of this year.
Moreover, Bell Canada has become the first telecom provider in North America to roll out Tri-Band LTE Advanced (LTE-A) network services which can deliver speeds of up to 290 megabits per second. With demand growing for the latest line of smartphones such as Samsung’s Galaxy S6 and Apple’s iPhone 6s which support the technology, BCE Inc. is well poised for growth in the near future.
However, the company’s local line access for traditional telephony service continues to face a decline among large customers owing to higher wireless substitution and migration to IP-based services. To add to the woes, headwinds such as stiff competition and union issues might continue to hurt profits.
Earnings Whispers
Our proven model does not conclusively show that Shaw Communicationsis likely to beat the Zacks Consensus Estimate this quarter. This is because a stock needs to have both a positive Earnings ESP 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 below.
Zacks ESP:BCEhas an earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 64 cents.
Zacks Rank:BCEhas a Zacks Rank #3 (Hold) which increases the predictive power of ESP. However, we need to have a positive ESP to be confident of an earnings surprise.
Stocks to Consider
Here are some companies you may want to consider as our model shows these have the right combination of elements to post an earnings beat this quarter:
Telus Corp. TU has an earnings ESP of +4.26% and a Zacks Rank #3.
AT&T Inc. T has an earning ESP of +1.61% and a Zacks Rank #1.
Sprint Corp. S has an earning ESP of +11.11% and a Zacks Rank #2.
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