Tessera Technologies Inc.
) is set to report first-quarter fiscal 2014 results on May 6.
Last quarter, it posted in-line results. Let's see how things are
shaping up for this announcement.
Growth Factors This Past Quarter
Tessera Technologies' fourth-quarter earnings of 8 cents were
in line with the Zacks Consensus Estimate due to higher revenues.
Revenues were up 51.2% sequentially and 18.5% year over year. The
solid growth was driven by strong performance in both the
Intellectual Property and DigitalOptics segments.
Intellectual Property revenues increased year over year,
primarily due to increased royalty revenues from SK Hynix, Inc.
and greater episodic revenues. On the other hand, the
year-over-year increase in the DigitalOptics segment was
attributable to a one-time license fee related to a legacy DOC
Tessera's DOC portfolio leads the semiconductor manufacturing
technology category, ahead of companies such as Samsung,
), Foxconn and
Moreover, the company's recent litigation settlement
agreements with Renesas Electronics Corporation, Renesas
Electronics America, Inc. and Qualcomm Technologies, Inc. will
make Tessera free of litigation expenses in the future.
The company is on the right track and the fact that the target
market is fast-growing is an added bonus.
Our proven model does not conclusively show that Tessera
Technologies will beat estimates this quarter. That is because a
stock needs to have both a positive
and a Zacks Rank #1, 2 or 3 for this to happen. That is not
the case here as you will see below.
Both the Most Accurate estimate and the Zacks Consensus Estimate
stand at 50 cents. Hence, the difference is 0.00%.
Tessera Technologies' Zacks Rank #3 (Hold), when combined with a
0.00% ESP makes surprise prediction difficult.
We caution against stocks with Zacks Ranks #4 and #5
(Sell-rated stocks) going into the earnings announcement,
especially when the company is seeing negative estimate revisions
Other Stocks to Consider
Here are some other companies, which you may want to consider
as our model shows that they have the right combination of
elements to post an earnings beat this quarter:
BLACKBERRY LTD (BBRY): Free Stock Analysis
INFINERA CORP (INFN): Free Stock Analysis
INTEL CORP (INTC): Free Stock Analysis Report
INTELIQUENT INC (IQNT): Free Stock Analysis
SANDISK CORP (SNDK): Free Stock Analysis
TESSERA TEC INC (TSRA): Free Stock Analysis
To read this article on Zacks.com click here.
), with Earnings ESP of +4.00% and a Zacks Rank #1 (Strong
) with Earnings ESP of +33.33% and a Zacks Rank #2 (Buy)
) with Earnings ESP of +21.43% and a Zacks Rank #2