I recently wrote an article on Seeking Alpha where I discussed my positive outlook on communications equipment suppliers exposed to telecommunications service providers. The main points that formed the basis for my positive view were:
- Data points from Ciena, Cisco and Juniper in the month June that suggest spending in the US, particularly at AT&T, is improving in 2Q and should help communications equipment providers report decent results for the June quarter.
- The outlook for LTE spending into 2014 for the US and China is improving given LTE spending plans by Sprint and T-Mobile in the US and China Mobile and China Telecom in China.
For those interested, you can read the full article here. Keep in mind, several of these stocks have rallied recently, so stocks in the communications equipment sector may have already begun to discount good results for the upcoming June quarter reporting season.