Telecom Stock Roundup: Motorola, Arista, Altice & Others Report Q3 Earnings
Zacks Investment Research | Nov 07, 2018 08:10PM ET
In the past five trading days, telecom stocks experienced an uptrend and almost mirrored the broader S&P 500 Index, albeit with a relatively above-par performance. The stocks appeared to ride on the positive feelers associated with the mid-term polls for the smooth sail. In addition, healthy corporate earnings from the telecom industry in general seem to propel the stocks, despite the unrelenting trade war tensions with China.
A few days after the U.S. Commerce Department issued a restraining order for domestic firms to stop selling key software and technology to China provincial government-owned Fujian Jinhua Integrated Circuit Co., citing national security threats, the U.S. Justice Department issued a fresh indictment. The latest salvo indicted Fujian Jinhua and Taiwan-based United Microelectronics Corp of industrial espionage and accused them of conspiracy to steal trade secrets from U.S. semiconductor firm Micron Technology (NASDAQ:MU) relating to its memory storage devices. This is further likely to aggravate the trade relations of United States with China.
Among the various other developments in the past week affecting the industry, the notable were the U.S. Supreme Court’s denial to accept any challenge on net neutrality laws and the Federal Communications Commission (“FCC”) decision to send notices to telecom firms to address the issue of ‘robocalls’. While the favorable Supreme Court verdict is a win for net neutrality supporters, the fight over how internet access will be regulated is still far from over. The FCC’s decision to seek a detailed roadmap from leading telecom service providers was further aimed to end the unsolicited calls that users have to constantly grapple with, which had long been a demand from consumers.
Regarding company-specific news, earnings, strategic collaborations and product launches took the center stage over the past five trading days.
Recap of the Week’s Most Important Stories
1. Motorola Solutions, Inc. (NYSE:MSI) reported healthy third-quarter 2018 results on the back of strength in both segments primarily led by North America, resulting in year-over-year growth in sales and profitability.
Non-GAAP earnings per share were $1.94 compared with $1.53 in the year-ago quarter. The bottom line beat the Zacks Consensus Estimate by 22 cents. Quarterly total net sales were $1,862 million compared with $1,645 million in the year-ago quarter, primarily driven by growth in the Americas and EMEA, acquisitions and adoption of accounting standard ASC 606. The top line, however, missed the Zacks Consensus Estimate of $1,863 million. (Read more: Original post
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