Arrow Electronics Inc.
) is set to report fourth-quarter fiscal 2013 results on Feb 5.
Last quarter, the company posted a negative earnings surprise of
1.67%. Let us see how things are shaping up for this
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Growth Factors This Past Quarter
Electronic component distributor Arrow delivered
lower-than-expected third-quarter 2013 results. We believe that
Arrow's core strength of providing best-in-class services and
easy-to-acquire technologies are expected to bolster its growth
in the future. The company's recent associations with
International Business Machines
) and Dell also remain the positives going forward.
Additionally, the company's positive commentary about enhanced
productivity, annual cost savings and expected contributions from
Europe remain the growth drivers. However, the cyclicality of the
components business and competition from peers could pose
headwinds for the company.
Our proven model does not conclusively show that Arrow 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 $1.62 per share. Hence, the difference is 0.00%.
Arrow's Zacks Rank #3 (Hold), 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 are other companies you may want to consider as our model
shows that they have the right combination of elements to post an
earnings beat this quarter:
Advance Auto Parts Inc.
), Earnings ESP of +2.56% and a Zacks Rank #1 (Strong Buy)
ON Semiconductor Corp.
), Earnings ESP of +14.29% and a Zacks Rank #2 (Buy)