j2 Global Inc.
), a leading provider of unified messaging capabilities, is
slated to report its fourth-quarter 2013 financial results after
the closing bell on Feb 13, 2014.
In the last quarter, the company delivered a 7.14% earnings
surprise. We will briefly discuss those factors which will
influence the earnings results.
Factors to Influence This Quarter
At present, j2 Global commands approximately 30% of the
world's cloud-based digital faxing system. The company was able
to reinvigorate sales from credit-sensitive clients, despite
facing global macroeconomic volatility. Segment wise, the company
continues to grow its most powerful eFax brand with creative
content and designs. Strong free cash flow and low leverage have
induced the company to execute five buyouts in 2013.
j2 Global is confident about its growth prospect owing to
increasing demand for cloud based, value-added communication,
messaging and data backup services.
The company's business is sensitive to overall macroeconomic
factors, particularly weakness in credit markets. The company has
a vast majority of credit-sensitive customers from lending and
mortgage industries and other financial institutions. Moreover,
competition in the outsourced, value-added messaging and
communications industry is fierce and continues to intensify.
Thus, this is likely to increase the operating expenses.
Our proven model does not conclusively show that j2 Global is
likely to beat the Zacks Consensus Estimate this quarter. This is
because a stock needs to have both a positive
and a Zacks Rank #1, 2 or 3 for this to happen. Unfortunately,
this is not the case here as elaborated below.The Sell-rated
stocks (#4 and 5) should never be considered going into an
The Most Accurate estimate and the Zacks Consensus Estimate are
poised at $0.69. Hence, the ESP is 0.00%.
Zacks Rank #3 (Hold):
j2 Global's Zacks Rank #3 decreases the predictive power of
We caution investors against the stock going into the earnings
announcement, as a Zacks Earnings ESP of 0.00% combined with a
Zacks Rank #3 lowers the possibility of an earnings surprise.
Other Stocks to Consider
Here are some other companies to might consider as our model
shows these have the right combination of elements to post an
earnings beat this quarter.
Tableau Software, Inc.
) with earnings ESP of +16.67% and Zacks Rank #3.
The Walt Disney Company
) with earnings ESP of +1.10% and Zacks Rank #2 (Buy).
AMC Networks Inc.
) with earnings ESP of +5.20% and Zacks Rank #3.
AMC NETWORKS- A (AMCX): Free Stock Analysis
TABLEAU SOFTWAR (DATA): Free Stock Analysis
DISNEY WALT (DIS): Free Stock Analysis Report
J2 GLOBAL INC (JCOM): Free Stock Analysis
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