PCTEL (PCTI) Gears Up For Q3 Earnings: What's In Store?
Zacks Investment Research | Nov 04, 2019 09:15PM ET
PCTEL, Inc. (NASDAQ: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 Original post
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