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TESSCO (TESS) to Report Q4 Earnings: What's in the Offing?

Zacks Equity Research

TESSCO Technologies Incorporated TESS is scheduled to report fourth-quarter fiscal 2019 financial results on May 6, after the closing bell. In the last-reported quarter, the company delivered a positive earnings surprise of 68.4%.

Let’s find out how things are shaping up prior to the announcement —

What Our Model Says

Our proven model does not conclusively show that TESSCO is likely to beat earnings this quarter as it does not possess one of the two key components. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is not the case here as you will see below:

Earnings ESP: TESSCO’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 16 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

TESSCO Technologies Incorporated Price and EPS Surprise

TESSCO Technologies Incorporated Price and EPS Surprise

TESSCO Technologies Incorporated price-eps-surprise | TESSCO Technologies Incorporated Quote

Zacks Rank: TESSCO currently has a Zacks Rank #3, which increases the predictive power of ESP. However, the company’s 0.00% Earnings ESP makes surprise prediction difficult.

Note that we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated) going into the earnings announcement, especially when the company is seeing a negative estimate revisions momentum.

Factors at Play

The wireless communications company has been experiencing strong results from its big customers, while increasing market share with existing ones. It is well positioned to drive its business by providing products and solutions for the 5G build out over the next several years.

During the fiscal fourth quarter, TESSCO unveiled Partner Solutions to help retailers navigate the next generation of wireless technology and consumer behavior. The announcement was made at the 2019 Consumer Electronics Show in Las Vegas. The move is expected to have supplemented its top-line performance in the to-be-reported quarter.

In addition, the company integrated JLab Audio to its range of suppliers for providing quality product at accessible price points for consumers. They now make JLab’s line of audio accessories available to retailers across the nation. The deal has amplified the company’s collection of audio accessories by adding JLab’s cutting-edge wireless earbuds, wired Bluetooth earbuds and headsets. TESSCO is actively pursuing strategies to capitalize on exciting growth opportunities in the marketplace.

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:

Upland Software, Inc. UPLD with an Earnings ESP of +0.32% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Cigna Corporation CI with an Earnings ESP of +5.14% and a Zacks Rank #2.

Church & Dwight Co., Inc. CHD with an Earnings ESP of +1.06% and a Zacks Rank #2.

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