Arlo Technologies (ARLO) shares soared 7% in the last trading session to close at $6.39. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 15.7% loss over the past four weeks.

The upswing in share price came after the company announced that its the second quarter, 2021 results will be disseminated on Aug 4, 2021 after the market closes.

The company is benefiting from a growing subscriber base, driven by its new business model and expanding portfolio. This home security and IoT solution provider added a record 114,000 paid accounts in the first quarter, reflecting year-over-year growth of 115.3%, a trend likely to continue in the to-be reported quarter.

This maker of smart connected devices is expected to post quarterly loss of $0.15 per share in its upcoming report, which represents a year-over-year change of +51.6%. Revenues are expected to be $86.59 million, up 30% 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 Arlo Technologies, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on ARLO 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 >>>>

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