Will Telecom ETFs Gain Despite Mixed Q2 Earnings?
Zacks Investment Research | Aug 12, 2020 03:58AM ET
Like all other sectors, the telecom sector has been impacted by the coronavirus crisis. Telecom firms had to incur higher costs associated with bad debt, production shutdowns and expenses related to retail store closures, leading to lower equipment sales and advertising revenues. Also, companies are being forced to redraw their distribution channels for changing customer demand and preferences. The players in the sector are also trying to redefine business plans to optimize efficiencies and operations and to lower costs while supporting employees and customers with several financial packages.
However, the firms have come together to manage the increase in data traffic. Most of the industry players are installing the latest 4G LTE Advanced technologies to provide higher peak data speeds and capacity. The companies are also preparing their fiber optic networks to support 4G LTE and 5G wireless standards as well as wireline connections.
Let’s take a look at some big telecom earnings releases and if these can impact the ETFs exposed to the space.
Earnings in Focus
On Jul 23, AT&T Inc (NYSE:T). Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
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