We expect professional networking solution provider
EMC Corporation (
to beat expectations when it reports third-quarter 2013 results
on Oct 22, 2013.
Why a Likely Positive Surprise?
Our proven model shows that EMC is likely to beat the earnings
estimate because it has the right combination of two key
Positive Zacks ESP:
, which represents the difference between the Most Accurate
Estimate and the Zacks Consensus Estimate is at +2.70%. This is
very meaningful and a leading indicator of a likely positive
earnings surprise for shares.
Zacks Rank #2 (Buy):
Note that stocks with Zacks Ranks of #1, #2 and #3 have a
significantly higher chance of beating estimates. The sell rated
stocks (#4 and #5) should never be considered going into an
The combination of EMC Corp'sZacks Rank #2 and a +2.70% ESP
makes us very confident in looking for an earnings beat on Oct
What is Driving the Better than Expected Earnings?
EMC is well positioned to benefit from incremental data center
hardware spending going forward. We believe that EMC's vast
product portfolio, which has products suitable for any kind of
budget, will boost its market share going forward. Additionally,
aggressive share repurchase will drive earnings going
Moreover, EMC revenues are expected to benefit from the new
mid-range VNX systems (pent-up demand), along with the refresh of
its backup and recovery systems and the increase in demand of
flash products in the second half of the year.
Moreover, the recently announced Project Nile is also likely
to benefit the company in the long run, although companies such
International Business Machines Corp. (
offer competitive products to grab additional marketshare.
Other Stocks to Consider
EMC Corp is not the only firm looking up this earnings season.
We also see likely earnings beats coming from these 2 industry
), Earnings ESP of +2.84% and a Zacks Rank #1 (Strong Buy)
Asml Holding NV
), Earnings ESP of +4.17% and a Zacks Rank #3 (Hold)
ASML HOLDING NV (ASML): Free Stock Analysis
EMC CORP -MASS (EMC): Free Stock Analysis
INTL BUS MACH (IBM): Free Stock Analysis
SANDISK CORP (SNDK): Free Stock Analysis
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