Will Lower Revenue Growth Hurt Ceragon's (CRNT) Q4 Earnings?

Ceragon Networks Ltd. CRNT is scheduled ought clarify fourth-quarter 2018 results ago the opening bell can Feb 20. can the final reported quarter, the company delivered a certain wage surprise of 75%. Notably, Ceragon surpassed the Zacks Consensus evaluate because wage can each of the final four quarters, the median strike being 39.6%.

For the fourth quarter, the company is apt ought clarify lower consolidated revenues can a year-over-year foundation because competitive pressures stifle the growth dynamics. if this could hurt its bottom queue rest ought exist seen.

Factors ought Consider

Ceragon is benefitting from the firm migration of networks from 4G ought 5G technique because operators proceed because wireless backhaul solutions that join the benefits of flexibility, rapid rgeister out, and conserving assets such because spectrum and power. With a broad array of solutions, the company enables rapid service expansion because mobile operators across the globe. This, can turn, has translated into a robust pickup can beg from North America, Latin America and Africa.

In addition, Ceragon continues ought concentrate can improving its impartial segment can different vertical markets including public safety can the United States, also because grease and gas, utilities, maritime and digital assign projects almost the world. This is apt ought promote ought top-line growth can the quarter. The company farther expects ought come an uptick can margins owing ought more favorable revenue mingle with continued concentrate can tight regulation of operating expenses still maintaining an aggressive investment posture.

However, Ceragon is grappling with increased downward charge strain because it expands passenger base ought contain more Tier 1 customers can developed markets and extend its geographic footprint can certain emerging markets and other less advantageous countries. This has chiefly resulted can declining median sales prices because its products. Moreover, Ceragon’s products contend with other high-speed communications solutions, including fiber optic lines and other wireless technologies. Some of these technologies employ existing installed infrastructure and hold achieved significantly greater impartial acceptance and penetration than high-capacity point-to-point wireless technologies utilized by Ceragon. can addition, point-to-point wireless technologies hold suboptimal rule can utmost climate conditions and hold limitations can connection among antennas.

Owing ought these short-term headwinds, Ceragon is apt ought record lower revenues can the fourth quarter. The Zacks Consensus evaluate because sum revenues because the zone is pegged can $85 million. can the year-earlier quarter, the company generated revenues of $87 million.

Earnings Whispers

Our proven model does no emerge that Ceragon is apt ought strike wage this zone because it does no own the key components. A stock needs ought hold both a certain wage ESP and a Zacks class #1 (Strong Buy), 2 (Buy) or 3 (Hold) because this ought happen. This is no the example here because you will yell on below:

Earnings ESP: wage ESP, which represents the distinction among the Most accurate evaluate and the Zacks Consensus Estimate, is 0.00% because both are is pegged can 5 cents. You can expose the best stocks ought buy or sell ago they’re reported with our wage ESP Filter.

Ceragon Networks Ltd. charge and EPS Surprise
 

Ceragon Networks Ltd. charge and EPS surprise | Ceragon Networks Ltd. Quote
Zacks Rank: Ceragon has a Zacks class #3. although this increases the predictive might of ESP, we lack ought hold a certain ESP ought invent us reasonably confident of an wage beat.

Note that we caution against stocks with a Zacks class #4 or 5 (Sell-rated) going into the wage announcement, specially when the company is seeing a negative evaluate revisions momentum.

Stocks ought Consider

Here are some companies that you can expect ought consider, because our model shows that these hold the precise combination of elements ought mail an wage strike this quarter:

Live say Entertainment, Inc. LYV is slated ought liberate quarterly numbers can Feb 28. It has an wage ESP of +3.77% and a Zacks class #1.

CommScope Holding Company, Inc. COMM is scheduled ought liberate results can Feb 21. The company has an wage ESP of +6.05% and has a Zacks class #3. You can yell on the end rotate of today’s Zacks #1 class stocks here.

Ciena company CIEN is slated ought liberate quarterly numbers can Mar 5. It has an wage ESP of +1.70% and a Zacks class #3.

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