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Cambium (CMBM) to Report Q1 Earnings: What's in the Cards?

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Cambium Networks Corporation CMBM is scheduled to report first-quarter 2021 results on May 6, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 40.7%. It pulled off a trailing four-quarter earnings surprise of 128%, on average.

The Rolling Meadows, IL-based company is expected to have recorded significantly higher revenues on a year-over-year basis. Solid demand for wireless broadband connectivity, fueled by the increasing need for a streamlined networking infrastructure amid the COVID-19 crisis, might have acted as a major tailwind. Product launches, technological innovations and accretive investments in fixed wireless infrastructure technologies are likely to have been conducive to Cambium’s top-line performance.

Moreover, factors like favorable liquidity position, robust demand for infrastructure projects, steady customer additions and fast-tracked government funding of broadband solutions to bridge digital disparity might have boosted Cambium’s margins in the to-be-reported quarter.

Key Factors

During the quarter under review, Cambium unveiled a cloud-first wired and wireless network management systems portfolio — cnMaestro. The portfolio comprises cnMaestro Essentials and cnMaestro X that have been specifically designed to streamline operations and workflows with improved efficiency and superior end-user experiences.

It also launched the ePMP Force 400 series point-to-point system that provides high-speed fixed wireless connectivity in the Sub-6 GHz spectrum. The innovative offering has been built on Qualcomm’s 802.11ax technology that delivers high-capacity experiences on the back of the unlicensed spectrum. Notably, Cambium is touted as the first company to sell a gigabit outdoor point-to-point system with the unique 802.11ax technology.

In the quarter, the telco had also announced the deployment of affordable network connectivity in the western region of the United States with the supply of fixed wireless broadband and Wi-Fi solutions to the underserved communities. The move is primarily aimed at providing high-speed Internet access to boost local economies and aid educational institutions and municipalities with enhanced connectivity in a bid to bridge the digital gap. All these developments are likely to have had a positive impact on the company’s top line in the first quarter.

For the to-be-reported quarter, the Zacks Consensus Estimate for total revenues is pegged at $83 million, which indicates an increase of 38.3% from the year-ago quarter’s reported figure. The consensus estimate for adjusted earnings per share is pegged at 33 cents, which suggests a surge of 560%.

What Our Model Says

Our proven model does not predict an earnings beat for Cambium this time around. 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. 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 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Cambium Networks Corporation Price and EPS Surprise

Cambium Networks Corporation Price and EPS Surprise
Cambium Networks Corporation Price and EPS Surprise

Cambium Networks Corporation price-eps-surprise | Cambium Networks Corporation Quote

Zacks Rank: Cambium currently carries a Zacks Rank #2.

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:

Ironwood Pharmaceuticals, Inc. IRWD is slated to release first-quarter 2021 results on May 6. It has an Earnings ESP of +14.94% and currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Welbilt, Inc. WBT is scheduled to release first-quarter 2021 results on May 6. The company has an Earnings ESP of +92.31% and carries a Zacks Rank #2, at present.

Oportun Financial Corporation OPRT has an Earnings ESP of +60.00% and a Zacks Rank of 2. The company is set to report first-quarter 2021 results on May 6.

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