Over the last trading session, shares of Ceragon Networks (CRNT) were up slightly at $2.13 a share. Year over year, the stock is down nearly 45%. While down, the stock is viewed as an interesting 5G stock to watch.
CRNT provides wireless backhaul solutions that enable cellular operators and other wireless service providers to deliver voice and data services worldwide. Its wireless backhaul solutions use microwave radio technology to transfer telecommunication traffic between base stations, small sells, and the core of the service provider’s network. The company also provides wireless fronthaul solutions that use microwave technology for communication between LTE/LTE-advanced base band digital unit stations and remote radio heads.
In Nov. 2019, the stock fell even more after a disappointing earnings report. Third quarter sales fell by 17% year over year to $72.2 million. Adjusted EPS fell from seven cents to a penny, which was below expectations for four cents on sales of $85 million.
We’ll get a better look at what’s happening with CRNT when it releases its next earnings report before the market opens on February 10, 2020. According to estimates, CRNT may post an EPS loss of a penny a share.
In 2020, close to 10% of Americans with a smartphone will subscribe to 5G services. By the end of 2023, Ericsson predicts that almost 50% of all U.S. mobile subscriptions will be based on the new standard. As smartphones and other digital devices get smarter and more numerous — and as the applications they run generate ever more data — the wireless network that connects them must change to keep pace, which is where CRNT may be able to help.
Telecommunications giants like Verizon, AT&T, and Sprint are racing to roll out the fifth generation of wireless network technology, says NBC News. Plus, 5G will help provide faster speed. In many cases, data transfer speeds could be up to 10x faster than 4G. That means faster transmission of images and videos.
As of this writing, Ian Cooper does not have a position in shares of CRNT.
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