MICROS Systems Inc.
) is set to report third-quarter fiscal 2014 results on May 1.
Last quarter, the company posted a negative earnings surprise of
1.69%. Let us see how things are shaping up for this
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Growth Factors This Past Quarter
MICROS reported mixed second-quarter fiscal 2014 results with the
top line beating the Zacks Consensus Estimate and the bottom line
missing the same. Revenues increased year over year, primarily
attributable to improving macro conditions across all business
Moreover, recent collaborations with companies like
), Dell and
) are expected to boost MICROS' hardware business going forward.
Also, rapid adoption of MICROS' solutions will increase its top
line. Expansion of the company's SaaS capabilities and increase
in licensed software sales should also support revenues.
On the flip side, the company is facing competition from the
likes of Square, Revel,
), which provide mobile and tablet-based offerings for the
hospitality sector and cannibalize the legacy point of sale (POS)
Moreover, the company's European exposure and a sluggish
macro-economic environment are the other headwinds, going
Our proven model does not conclusively show that MICROS will beat
earnings this quarter. That is because a stock needs to have both
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 61 cents. Hence, the difference is 0.00%.
MICROS' Zacks Rank #2 (Buy) 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 momentum.
Other Stocks to Consider
Here is another company you may want to consider as our model
shows that they have the right combination of elements to post an
earnings beat this quarter:
ON Semiconductor Corp.
) has an Earnings ESP of +6.67% and holds a Zacks Rank #1 (Strong