Will Solid Broadband Demand Aid Clearfield (CLFD) Q1 Earnings?

Clearfield, Inc. CLFD is scheduled to report first-quarter fiscal 2022 results after the closing bell on Jan 27. In the quarter, the company is likely to have recorded year-over-year higher revenues due to strong broadband demand in the rural markets.

Factors at Play

Clearfield is likely to have benefited from higher infrastructure investments by communication service providers to improve their broadband network capabilities to meet the exponential growth in data traffic. Increasing work-from-home trend amid rising coronavirus infections and replacement of equipment of China-based firms like Huawei and ZTE with that manufactured by domestic firms is likely to have led to top-line growth in the to-be-reported quarter.

During the fiscal first quarter, Clearfield launched a new small form factor FLATdrop cable that can be placed in any-and-all environments, including direct bury, in conduit, aerial lashed and aerial self-supporting, thereby reducing expensive real estate challenges such as pole usage. This space-saving, cost-effective, easy installation product is likely to have lowered the operating costs of carriers for fiber deployment. It is expected to have generated incremental revenues for the company.

The Zacks Consensus Estimate for total revenues of the company stands at $42 million, indicating an improvement from $27 million reported in the prior-year quarter. The consensus mark for earnings is currently pegged at 49 cents per share. It had reported earnings of 23 cents per share in the year-earlier quarter.

Earnings Whispers

Our proven model does not predict an earnings beat for Clearfield for the fiscal first quarter. 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%. 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 #3.

Stocks to Consider

Here are other 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:

Alphabet Inc. GOOGL is set to release quarterly numbers on Feb 1. It has an Earnings ESP of +7.33% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Earnings ESP for Cirrus Logic, Inc. CRUS is +1.48% and it carries a Zacks Rank of 2. The company is set to report quarterly numbers on Jan 31.

The Earnings ESP for Meta Platforms, Inc. FB is +2.52% and it carries a Zacks Rank of 3. The company is scheduled to report quarterly numbers on Feb 2.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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