Research in Motion Limited
), the Canadian handset manufacturer, to surpass expectations
when it reports fourth-quarter fiscal 2013 results before the
opening bell on Mar 28, 2013.
Why a Likely Positive Surprise?
Our proven model shows that BBRY is likely to beat earnings
because it has the right combination of two key ingredients.
Positive Zacks ESP
: Expected Surprise Prediction or ESP (Read:
Zacks Earnings ESP: A Better Method
), which represents the difference between the Most Accurate
estimate and the Zacks Consensus Estimate, stands at +6.90%. This
is a meaningful and leading indicator of a likely positive
Zacks #3 Rank (Hold)
: BBRY currently has a Zacks Rank #3. Note that the stocks with
Zacks Ranks of #1, #2 and #3 have a significantly higher chance
of beating the earnings.
The combination of BBRY's Zacks Rank #3 (Hold) and +6.90% ESP
makes us confident of a positive earnings beat on Mar 28,
What's Driving the Positive Sentiment?
BBRY is poised for a better performance as the company's newly
launched BB10 operating system-based smartphone Z10 is receiving
good customer response in the global market. BBRY has made
significant development in its latest platform by enriching it
with popular applications and is also making strong investment in
promoting its latest operating platform.
However, the latest touch screen based device could impact the
sales of company's legacy QRT smartphones in the upcoming
Reportedly, the new device is performing well in Canada, UK
and UAE and has recently been launched in Malaysia, Singapore and
India. Recently, BBRY announced that it has witnessed a strong
customer switch from other OS platforms to their latest
However, sustainability of the current momentum and the rise
in material costs on account of the use of expensive parts,
remain the near-term headwinds for the company.
Other Stocks to Consider
Other companies you may want to consider on the basis of our
model, which shows that they have the right combination of
elements to post an earnings beat this quarter, are as
Rogers Communications Inc.
) has an Earnings ESP of +2.60% and carries a Zacks Rank #2
Juniper Networks Inc.
) has earnings ESP of +6.67% and carries a Zacks Rank #2
) has earnings ESP of +5.56% and carries a Zacks Rank #2
RESEARCH IN MOT (BBRY): Free Stock Analysis
JUNIPER NETWRKS (JNPR): Free Stock Analysis
NETFLIX INC (NFLX): Free Stock Analysis
ROGERS COMM CLB (RCI): Free Stock Analysis
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