The third-quarter 2016 earnings season has already seen releases from a large number of companies, with most reporting better-than-expected numbers. Moreover, earnings growth expectation — which was initially perceived to be negative — is now in the green zone. As per our latest Earnings Preview, aggregate Q3 earnings are expected to be up 2% from the same period last year on the back of 1.4% higher revenues. Moreover, we expect the trend to continue in the upcoming quarters. Thus, initial fears of a continued earnings recession are gradually dissipating.
While the overall earnings picture looks rosy for now, let us take a look at some of the stocks in the telecom sector that are expected to report their quarterly numbers on Nov 2.
QUALCOMM Incorporated QCOM develops and delivers innovative digital wireless communications products and services. This Zacks Rank #3 (Hold) stock will be posting its fourth-quarter fiscal 2016 results. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Meanwhile, Qualcomm has an Earnings ESP of -2.04%. This is because the Most Accurate estimate currently stands at 96 cents while the Zacks Consensus Estimate is pegged at 98 cents. The company’s negative ESP makes surprise prediction difficult. (Read more: What's in the Cards for Qualcomm in Q4 Earnings?)
ORBCOMM, Inc. ORBC, a leading global satellite data communications company, will report third-quarter 2016 results. ORBCOMM 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 5 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, ORBCOMM is not likely to beat the Zacks Consensus Estimate this quarter. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
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