) is set to report first-quarter 2014 results on Apr 21. Last
quarter, the company posted an astounding positive earnings
surprise of 1300.00%. Let's see how things are shaping up for
Growth Factors This Past Quarter
Rambus reported encouraging fourth-quarter results as the
bottom line surpassed the Zacks Consensus Estimate and the top
line was roughly in line. The company provided a decent guidance
for the first quarter of 2014, given modest royalty receipts. We
expect first-quarter results to improve, given the ramp up in its
For the current quarter, we remain optimistic about the recent
licensing deals between Rambus and several semiconductor
manufacturers such as Nanya Technology Corporation and Fairchild
Semiconductor Corp. In the beginning of 2014, Rambus signed a
10-year licensing agreement with Samsung Electronics.
Thus, these licensing agreements are a recurring revenue
source for Rambus - the result of successfully monetizing its
patents. Moreover, the company expects to introduce several
innovative products and services in 2014 that would support its
Our proven model does not conclusively show that Rambus will
beat earnings 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 1 cent. Hence, the difference is 0.00%.
Rambus' Zacks Rank #1 (Strong 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
Other Stocks to Consider
Here are some other companies you may want to consider as our
model shows that it has the right combination of elements to post
an earnings beat this quarter:
ON Semiconductor Corp.
) has an Earnings ESP of +6.67% and a Zacks Rank #1.
) has an Earnings ESP of +4.76% and a Zacks Rank #2 (Buy).
Pandora Media, Inc.
) has an Earnings ESP of +5.26% and a Zacks Rank #2.
AMAZON.COM INC (AMZN): Free Stock Analysis
ON SEMICON CORP (ONNN): Free Stock Analysis
PANDORA MEDIA (P): Free Stock Analysis Report
RAMBUS INC (RMBS): Free Stock Analysis Report
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