Yahoo Finance Can Revenue Growth Benefit Clearfield's (CLFD) Q2 Earnings?
Clearfield, Inc. CLFD is scheduled to release second-quarter fiscal 2023 earnings on May 4, after market close. In the last reported quarter, the company beat adjusted earnings by 3 cents. The communication service provider is likely to witness a top-line expansion year over year, likely benefiting from the rising demand for fiber connectivity. However, supply chain disruptions and competition from other established leaders in the industry could strain its margins.
Factors at Play
During the quarter, Clearfield introduced SeeChange Terminal and a hardened connector system to boost fiber network deployments and support broadband and 5G network operators to better tackle supply chain obstacles and match the rising demand for fast and robust connectivity. The system is easy to install, reduces the need for highly-skilled technicians, improves network performance, speeds up time to market and saves operators time and resources. SeeChange Terminal and hardened connector system include enhanced security features, more durability allowing it to withstand extreme environments. The compact design makes it highly flexible and easily deployable in various locations such as pedestal, vault, flowerpot, pole-mount and smart-pole. This is likely to have a positive impact on Clearfield’s earnings during the second quarter.
In the quarter under review, Clearfield has reached a significant milestone by supplying more than 50 million fiber port in the market. The company’s focus on innovation and creation of craft-friendly, Labor Lite Technologies is gaining positive momentum in the fiber broadband market. These developments highlights Clearfield’s ability to provide high speed, low latency broadband and ensure premium customer experience. These initiatives likely to have supported the top-line during the quarter.
For the March quarter, the Zacks Consensus Estimate for revenues is pegged at $71 million indicating growth from $53 million reported in the prior year. The consensus estimate for adjusted earnings stands at 55 cents per share. It reported earnings of 66 cents in the year-ago quarter.
Earnings Whispers
Our proven model does not predict an earnings beat for Clearfield this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00%, with both pegged at 55 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Clearfield, Inc. Price and EPS Surprise
Clearfield, Inc. price-eps-surprise | Clearfield, Inc. Quote
Zacks Rank: Clearfield has a Zacks Rank #5 (Strong Sell).
Stocks to Consider
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:
WESCO International, Inc. WCC is set to release quarterly numbers on May 4. It has an Earnings ESP of +3.60% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Earnings ESP for Jabil, Inc. JBL is +3.38% and it carries a Zacks Rank of 3. The company is scheduled to report quarterly numbers on Jun 15.
The Earnings ESP for Splunk Inc. SPLK is +12.76% and it sports a Zacks Rank of 1. The company is scheduled to report quarterly numbers on May 24.
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WESCO International, Inc. (WCC) : Free Stock Analysis Report
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Clearfield, Inc. (CLFD) : Free Stock Analysis Report
