Cypress Semiconductor Corporation
is set to report third-quarter 2013 results on Oct 17. Last
quarter, the company's earnings exceeded our expectations. Let us
see how things are shaping up for this announcement.
Growth Factors this Past Quarter
The company's revenues beat management's guided range of
$178.0 million-$186.0 million and were also up sequentially. This
can be attributed to broad strength across all business units,
particularly in TrueTouch BU. Also, gross margins expanded
sequentially due to better factory utilization rates and
favorable product and customer mix.
Cypress recently reduced its third-quarter guidance. The
company reduced the revenue guidance from $201 million-$207
million to $184 million-$187 million taking into account the
reduced demand from its major handset customers. The earnings per
share outlook has also been lowered to 10 cents-12 cents from the
previous guidance of 17 cents -18 cents.
Our proven model does not conclusively show that Cypress is
likely to 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.
The earnings ESP for the stock is 0.00%.
Zacks Rank #3 (Hold):
Cypress' 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
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:
), with Earnings ESP of +2.00% and a Zacks Rank #1 (Strong
Micron Technology Inc.
), with Earnings ESP of +4.35% and a Zacks Rank #1 (Strong
Advanced Micro Devices, Inc
), with Earnings ESP of +50.0% and a Zacks Rank #1 (Strong
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