Adeia Inc. ADEA is slated to reveal its fourth-quarter 2023 results on Feb 20 after the market closes.
The company has a commendable track record of surpassing earnings expectations, with its earnings beating the Zacks Consensus Estimate in each of the past four quarters, delivering an average surprise of 33.4%.
Q4 Expectations
The Zacks Consensus Estimate for ADEA’s Q4 revenues stands at $89.23 million, indicating a 13.6% year-over-year decline.
The bottom-line estimate is pegged at 26 cents, down 36.6% from the year-ago reported actuals. The projected decrease in revenues, alongside rising research development costs and interest expenses, is expected to exert pressure on the company’s bottom line.
Adeia Inc. Price and EPS Surprise
Adeia Inc. price-eps-surprise | Adeia Inc. Quote
What Our Model Says
Our proven model does not conclusively predict an earnings beat for ADEA this time. While a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) typically increase the odds of an earnings beat, this is not the case here. The company currently has an Earnings ESP of 0.00% and a Zacks Rank of 3.
Stocks to Consider
There are a few stocks from the broader Business Services sector that our model indicates have the potential to outperform earnings expectations this quarter.
GFL Environmental GFL, for instance, is expected to see strong performance, with the consensus mark pegged at 18 cents per share, implying over 100% growth from last year’s reported figures. The company has delivered an average surprise of 51.45% and currently has an Earnings ESP of +8.13% and a Zacks Rank of 3.
Similarly, Fidelity National FIS and MediaAlphaMAX stand out as potential overperformers, with positive Earnings ESP and Zacks Rank indicators, though the sector prediction is one of decline on year-over-year comparisons.
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The expressions and thoughts contained herein are those of the writer and do not necessarily mirror those of Nasdaq, Inc.
