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Can Top-Line Growth Aid Clearfield's (CLFD) Q1 Earnings?

Clearfield, Inc. CLFD is scheduled to release fiscal-first quarter 2023 earnings on Feb 2, after market close. In the last reported quarter, the company beat adjusted earnings by 42 cents. The specialist in fiber management for communication service providers is expected to report high year-over-year revenues. The upside is likely to be driven by innovation in fiber broadband deployment and customer-centric approach to reducing the complexity of deployment operations by limiting time and resources.

Factors at Play

Clearfield's FastPass Connect method is expected to enhance the speed and efficiency of fiber broadband deployment operations and immensely increase the rate of homes connected. Study findings claimed that this method reduces outside installation time by 38% and inside installation time by 35%. It also needs fewer field resources and less field labor, allowing the company to serve more customers in less time. This higher efficiency will also enable technicians to serve more daily customers, increasing their earning ability. The method will help CLFD advance toward its goal of closing the digital divide. These developments are expected to enhance the company's business portfolio and boost fiscal first-quarter revenues.

For the December quarter, the Zacks Consensus Estimate for revenues is pegged at $85 million. It reported revenues of $51 million in the year-ago quarter. The consensus estimate for adjusted earnings stands at 97 cents per share, suggesting an increase from the year-ago tally of 75 cents.

Earnings Whispers

Our proven model does not predict an earnings beat for Clearfield this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here.

Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is -2.58%, with the former pegged at 95 cents and the latter at 97 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Clearfield, Inc. Price and EPS Surprise

 

Clearfield, Inc. Price and EPS Surprise
Clearfield, Inc. Price and EPS Surprise

Clearfield, Inc. price-eps-surprise | Clearfield, Inc. Quote

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Zacks Rank: Clearfield currently has a Zacks Rank #3.

Other Stocks to Consider

Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:

Telephone and Data Systems, Inc. TDS is set to release quarterly numbers on Feb 16. It has an Earnings ESP of +2.63% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Earnings ESP for Zillow Group, Inc. ZG is +53.85% and it carries a Zacks Rank of 3. The company is set to report quarterly numbers on Feb 15.

The Earnings ESP for Cambium Networks Corporation CMBM is +9.27% and it’s sporting a Zacks Rank of 1. The company is scheduled to report quarterly numbers on Feb 16.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Telephone and Data Systems, Inc. (TDS) : Free Stock Analysis Report

Clearfield, Inc. (CLFD) : Free Stock Analysis Report

Zillow Group, Inc. (ZG) : Free Stock Analysis Report

Cambium Networks Corporation (CMBM) : Free Stock Analysis Report

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Zacks Investment Research