The ADT Corporation
) to beat expectations when it reports fourth-quarter and fiscal
2013 results before the opening bell tomorrow, Nov 2
Why a Likely Positive Surprise?
Our proven model shows that ADT Corporation is likely to beat
earnings since it has the appropriate combination of two key
Positive Zacks ESP: The Earnings ESP, which represents the
difference between the Most Accurate Estimate and the Zacks
Consensus Estimate, is +2.17%. This indicates a likely positive
Zacks Rank #3 (Hold): Stocks with a Zacks Ranks of #1, 2 and 3
have a significantly higher chance of beating earnings. The
Sell-rated stocks (#4 and 5) should never be considered going
into an earnings announcement.
ADT Corporation's Zacks Rank #3 increases the predictive power
of its ESP. The combination of its Zacks Rank and Earnings ESP
makes us confident of a positive earnings surprise in the
Key Earnings Drivers
The company is focussing on investments in its core business,
improving its operating efficiency and pursuing acquisitions to
complement its organic growth. Moreover, ADT Corporation
announced the acquisition of security systems provider Devcon
Security with an aim to further expand its customer base and to
reap benefits from its sales force and distribution capabilities.
Also, ADT Corporation's decent operating platform and cost-saving
initiatives keep us bullish on the stock.
The company had repurchased 7 million shares for $296 million
during the third quarter. Moving forward, the company aims to
return excess cash to shareholders in the form of both dividends
and share buybacks
Given the improving market fundamentals during the third
quarter, we expect the company to post decent quarterly results
Other Stocks to Consider
Here are some companies you may want to consider as our model
shows that they have the right combination of elements to post an
earnings beat in the imminent future.
) has an Earnings ESP of +1.33% and a Zacks Rank #1 (Strong
Honeywell International Inc
) has an Earnings ESP of +0.20% and a Zacks Rank #3 (Hold).
) has an Earnings ESP of +1.23% and a Zacks Rank #2 (Strong
ADT CORP (ADT): Free Stock Analysis Report
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WPP PLC (WPPGY): Free Stock Analysis Report
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