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Calix CALX shares rallied 7% in the last trading session to close at $31.47. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 29.5% loss over the past four weeks.
Calix is benefiting from strong demand for its broadband platform, cloud, and managed services, driving revenue growth and customer expansion.
This cloud, software platforms, systems and services provider for communications service providers is expected to post quarterly earnings of $0.14 per share in its upcoming report, which represents a year-over-year change of -33.3%. Revenues are expected to be $207.05 million, down 8.5% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Calix, the consensus EPS estimate for the quarter has been revised 8.1% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on CALX going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Calix is part of the Zacks Internet - Software industry. Rimini Street RMNI, another stock in the same industry, closed the last trading session 1.5% higher at $4.02. RMNI has returned 40.9% in the past month.
For Rimini Street , the consensus EPS estimate for the upcoming report has changed -8.3% over the past month to $0.09. This represents a change of +28.6% from what the company reported a year ago. Rimini Street currently has a Zacks Rank of #3 (Hold).
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Calix, Inc (CALX) : Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).