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PCTEL (PCTI) Gears Up for Q3 Earnings: What's in Store?

Zacks Equity Research

PCTEL, Inc.  PCTI is scheduled to report third-quarter 2019 financial results on Nov 7, after the closing bell. In the last reported quarter, the company delivered a positive earnings surprise of 85.7%. PCTEL topped the Zacks Consensus Estimate for earnings thrice in the trailing four quarters, the average beat being 146.4%.

Key Factors to Note

Although the company is in the early stage of 5G and deployment of Industrial IoT systems, its revenues and gross margin are likely to have been driven by demand for 5G scanning receivers and Industrial IoT antenna project wins. PCTEL’s cost reduction and realignment actions are likely to have aided its performance in the quarter under review.

In June 2019, the company added public safety LTE grid testing and enhanced P25 signal quality measurements to its public safety network testing solution. The capabilities support two growing trends in public safety communications across the United States — strict code-based grid testing requirements to ensure in-building coverage for first responders, and the adoption of FirstNet and other LTE-based broadband networks for enhanced public safety communications.

Further, PCTEL introduced LTE multiband antenna that helps boost data rates and reliability for utility networks. Its 5-port base station omni-directional antenna has been designed for fixed public and private LTE and Industrial IoT network deployments. The move is likely to have benefited the company in the to-be-reported quarter.

Trend in Estimates

For the September quarter, the Zacks Consensus Estimate for total revenues stands at $24 million. The company recorded $18 million in the prior-year quarter. The consensus estimate for adjusted earnings per share is pegged at 12 cents, suggesting an improvement over year-ago loss of 6 cents.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for PCTEL this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chance of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: PCTEL’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 12 cents.

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

PC-Tel, Inc. Price and EPS Surprise

PC-Tel, Inc. Price and EPS Surprise

PC-Tel, Inc. price-eps-surprise | PC-Tel, Inc. 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:

Franco-Nevada Corporation FNV is slated to release quarterly results on Nov 11. It has an Earnings ESP of +0.34% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Liberty Broadband Corporation LBRDK is scheduled to release results on Nov 11. The company has an Earnings ESP of +5.75% and carries a Zacks Rank #2.

Amicus Therapeutics, Inc. FOLD has an Earnings ESP of +3.98% and carries a Zacks Rank of 2. The company is set to report results on Nov 11.

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PC-Tel, Inc. (PCTI) : Free Stock Analysis Report
 
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