) is set to report first quarter fiscal 2014 results on Jan 27.
Last quarter it posted a 4.82% positive surprise. The company has
posted an average positive earnings surprise of 2.23% over the
past four quarters. Let's see how things are shaping up for
Growth Factors This Past Quarter
We believe that strong holiday season sales and the deal with
) will help Apple to post strong results in the quarter.
Apple reported strong revenue growth in China in the fourth
quarter. The China mobile deal will solidify Apple's position to
a greater extent in China and will enhance profitability going
However, Apple's iOS continues to face significant competition
from Google's Android operating system in most of the other
markets. The significant decline in revenues in the U.S and Rest
of Asia suggests market share loss to low cost smartphones and
tablets produced by Samsung, HTC, LG, Huawei and
). This remains a major headwind going forward.
Our proven model does not conclusively show that Apple is likely
to beat earnings this quarter. That is because a stock needs to
have both a positive
and a Zacks Rank of #1, 2 or 3 for this to happen. That is not
the case here as you will see below.
Negative Zacks ESP:
The Expected Surprise Prediction is -0.43%. This is because the
Most Accurate estimate stands at $13.98 while the Zacks Consensus
Estimate is higher at $14.04.
Zacks Rank #2 (Buy):
Apple's Zacks Rank #2 (Buy) when combined with a negative ESP
makes surprise prediction difficult. We caution against stocks
with Zacks #4 and #5 Ranks (Sell-rated stocks) going into the
earnings announcement, especially when the company is seeing
negative estimate revisions momentum.
Other Stocks to Consider
Here are some other companies you may want to consider as our
model shows they have the right combination of elements to post
an earnings beat this quarter:
APPLE INC (AAPL): Free Stock Analysis Report
AMAZON.COM INC (AMZN): Free Stock Analysis
CHINA MOBLE-ADR (CHL): Free Stock Analysis
MULTIMEDIA GAME (MGAM): Free Stock Analysis
MELCO CROWN ENT (MPEL): Free Stock Analysis
WESTERN DIGITAL (WDC): Free Stock Analysis
To read this article on Zacks.com click here.
Melco Crown Entertainment Ltd
), Earnings ESP of +5.0% and a Zacks Rank #1 (Strong Buy)
), Earnings ESP of +0.96% and a Zacks Rank #1 (Strong Buy)
Multimedia Games Holding Company, Inc.
), Earnings ESP of +10.35% and a Zacks Rank #2 (Buy)