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Telecom Stocks Earnings Roster for Jul 26: JNPR, CY & EGHT

The earnings season is off to solid start and is likely to replicate the March-end quarter performance, which proved to be one of the strongest in the past seven years. About 87 S&P 500 members have already released results till Jul 20. Total earnings for these companies are up 20.9% year over year on 10.3% higher revenues with 86.2% beating earnings estimates and 77% surpassing top-line expectations. Based on the hitherto observed pattern, the April-June quarter is anticipated to register healthy double-digit percentage earnings growth on a year-over-year basis. 

Per the latest Earnings Preview, overall earnings for all the S&P 500 companies are expected to be up 21% on 8.3% growth in revenues. This represents an almost similar growth projection from the previous quarter, which recorded 24.6% earnings growth on 8.7% higher revenues, keeping in mind that actual results typically exceed estimates by 3-5%. Experts widely believe that earnings growth is likely to improve steadily until the end of 2019, as the effect of tax cuts gradually percolates.

The Technology sector, of which Telecom is part, appears to be quite strong. For the sector, earnings are expected to improve 24.5% year over year while revenues are touted to rise 11.4% due to healthy growth dynamics on the back of existing secular trends in cloud computing, artificial intelligence and Big Data.

Let’s take a sneak peek at three Telecom stocks scheduled to report earnings on Jul 26 to see how things are shaping up for the upcoming results.

Juniper Networks, Inc. JNPR is scheduled to release second-quarter 2018 results after the closing bell. Unfavorable global macro environment and weak investment patterns among customers are likely to hurt Juniper’s revenue growth. Despite the top-line woes, non-GAAP gross margin is expected to improve sequentially due to increased volume and improvements in cost structure. Juniper expects to achieve this through value engineering efforts, supply chain optimization, pricing management and increasing software and solution sales. (Read more: Can Juniper Beat Q2 Earnings Despite Top-Line Woes?)

For the to-be-reported quarter, the company currently has an Earnings ESP of +1.34%, and Zacks Rank #3 (Hold), making us reasonably confident of an earnings beat. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 for a likely earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Juniper Networks, Inc. Price and EPS Surprise

 

Juniper Networks, Inc. Price and EPS Surprise | Juniper Networks, Inc. Quote

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Cypress Semiconductor Corporation CY is scheduled to report second-quarter 2018 results after the closing bell. We remain fairly certain on an earnings beat this quarter as it has an ESP of +0.43% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Cypress Semiconductor Corporation Price and EPS Surprise

 

Cypress Semiconductor Corporation Price and EPS Surprise | Cypress Semiconductor Corporation Quote

8x8, Inc. EGHT is slated to report first-quarter fiscal 2019 results after the closing bell. We remain inconclusive on an earnings beat prediction this quarter as it has an ESP of -16.28% and a Zacks Rank #3.

8x8 Inc Price and EPS Surprise

 

8x8 Inc Price and EPS Surprise | 8x8 Inc Quote

More Stock News: This Is Bigger than the iPhone!

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Cypress Semiconductor Corporation (CY) : Free Stock Analysis Report
 
Juniper Networks, Inc. (JNPR) : Free Stock Analysis Report
 
8x8 Inc (EGHT) : Free Stock Analysis Report
 
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