Telecom Stock Roundup: Motorola, Ubiquiti Trump Earnings Estimates & More
Zacks Investment Research | Feb 13, 2019 09:11PM ET
In the past five trading days, telecom stocks mostly traded flat for the bulk of the week owing to the continued market uncertainty triggered by trade-related headwinds and no apparent headways in the recent U.S.-China bilateral talks. However, the stocks witnessed a steep rise at the end of the week as President Trump proposed to extend the Mar 1 deadline to reach a sweeping agreement to end the trade skirmishes. A probable meeting between the leaders of both the countries is also in the cards in the near future.
The high-level trade negotiation between a team of U.S. delegates headed by Treasury Secretary Steven Mnuchin and their Chinese counterparts led by vice premier Liu He commenced from Monday and is scheduled to run through the week. Although no apparent breakthrough has been made, the Trump administration maintained that the talks were quite fruitful. Notably, President Trump offered an olive branch with proposal for a likely extension to the deadline to give negotiators more time for a long-term solution to the trade war. He also hinted that he could meet Chinese president Xi Jinping sometime later, to close the trade deal. Although specific discussions relating to restrictions for technology products remained muted, the industry cheered the positive developments.
Meanwhile, the government is moving closer to give the final touches to an executive order that could offer sweeping powers to the Commerce Department to review imported products by domestic firms and ban the outright sale of such equipment on grounds of national security interests. Industry observers feel that it could ultimately serve as a knell to some Chinese telecom firms and make it virtually impossible for them to operate in the U.S. shores if the bill is passed by President Trump. However, the proposed executive order is facing stiff opposition from rural telecom service providers that use low-cost Chinese equipment like that of Huwaei.
Regarding company-specific news, earnings 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 strong fourth-quarter 2018 results with record revenues, earnings per share, operating cash flow and backlog, driven by strength in both segments and diligent execution of operational plans. This marked an excellent end to 2018, which represented another year of healthy demand across its portfolio.
Non-GAAP earnings per share were $2.63 compared with $2.10 in the year-ago quarter. The bottom line beat the Zacks Consensus Estimate by 14 cents. Quarterly net sales were record high at $2,254 million compared with $1,957 million in the year-ago quarter, primarily driven by growth in both the segments. The top line exceeded the consensus estimate of $2,219 million. (Read more: Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.