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AudioCodes (AUDC) to Report Q4 Earnings: What's in the Offing?

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·3 min read
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AudioCodes Ltd. AUDC is scheduled to report fourth-quarter 2020 results, before the opening bell, on Jan 26. In the September quarter, the company delivered a positive earnings surprise of 22.6%. Notably, the company pulled off a trailing four-quarter positive earnings surprise of 20.6%, on average.

The Lod, Israel-based provider of next-gen communications software and productivity solutions is expected to have recorded higher revenues on a year-over-year basis on the back of robust demand across Contact Center and Unified Communications-as-a-Service markets.

In the quarter, healthy business momentum and lucrative cash flow from operations with a substantial rise in work-from-home trend amid the COVID-19 pandemic might have boosted its profitability. Also, increased deployment of Microsoft Teams is expected to have driven the overall cloud communication ecosystem with an upsurge in collaborative activities.

With a resilient business model, the leading vendor of advanced voice networking and media processing solutions intends to focus on two major growth areas — Microsoft Teams and Voice.AI business. Strong service revenues, which comprise managed and professional services, are likely to have bolstered AudioCodes’ financial performance in the fourth quarter.

For the December quarter, the Zacks Consensus Estimate for total revenues is pegged at $58 million, which indicates increase of 9.4% from the year-ago quarter’s reported figure. The consensus estimate for adjusted earnings per share is pegged at 38 cents, which suggests a surge of 46.2% from the prior-year quarter’s recorded figure.

What Our Model Says

Our proven model doesn’t conclusively predict an earnings beat for AudioCodes this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.

Earnings ESP: AudioCodes’s Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00% as both are pegged at 38 cents.

Zacks Rank: AudioCodes currently carries a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

AudioCodes Ltd. Price and EPS Surprise

AudioCodes Ltd. Price and EPS Surprise
AudioCodes Ltd. Price and EPS Surprise

AudioCodes Ltd. price-eps-surprise | AudioCodes Ltd. Quote

Stocks to Consider

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

Tesla, Inc. TSLA is slated to release fourth-quarter 2020 results on Jan 27. It has an Earnings ESP of +17.23% and currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

WesBanco, Inc. WSBC is scheduled to release fourth-quarter 2020 results on Jan 26. The company has an Earnings ESP of +6.69% and sports a Zacks Rank #1, at present.

Veritex Holdings, Inc. VBTX has an Earnings ESP of +2.47% and a Zacks Rank of 2. The company is set to report fourth-quarter 2020 results on Jan 26.

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