Zayo (ZAYO) To Report Q4 Earnings: What's In The Offing?
Zacks Investment Research | Aug 19, 2019 07:48AM ET
Zayo Group Holdings, Inc. (NYSE:ZAYO) is scheduled to report fourth-quarter fiscal 2019 results on Aug 21, after the closing bell. In the last reported quarter, the company delivered a negative earnings surprise of 16.7%.
Let’s find out how things are shaping up prior to the announcement.
Factors at Play
Zayo is poised to benefit from a diversified blue-chip customer base that comprises the largest and most sophisticated users of bandwidth. Its extensive network footprint, product portfolio and ability to penetrate in different markets are laudable. The company’s zColo portfolio comprises 51 data centers in more than 30 markets.
During the June quarter, Zayo was selected by a global infrastructure as a service provider for space and power in a zColo East Coast data center. This avant-garde solution, which has nearly 2,000 square feet of space and multiple hundreds of kilowatts of power, is an extension of one of the company’s facilities in the Southwest.
Zayo augmented its presence in Ohio with the expansion of its fiber network infrastructure in the region. The move has enabled the company to provide high-quality connectivity in order to support the seamless transition of enterprise and mobile carrier customers to 5G technology.
Despite these positives, the Zacks Consensus Estimate for total revenues stands at $647 million for the fiscal fourth quarter. Revenues of $658 million were reported in the year-earlier quarter. Adjusted earnings per share are pegged at 15 cents. The company posted earnings of 18 cents a year ago.
What Our Model Says
Our proven model does not conclusively show that Zayo 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 Zacks Investment Research
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