) to beat expectations when it reports first quarter 2014 results
on Apr 23. Last quarter, it posted a 4.0% positive surprise.
EMC CORP -MASS (EMC): Free Stock Analysis
HEWLETT PACKARD (HPQ): Free Stock Analysis
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ON SEMICON CORP (ONNN): Free Stock Analysis
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Let's see how things are shaping up for this announcement.
Why a Likely Positive Surprise?
Our proven model shows that EMC is likely to beat earnings
because it has the right combination of two key ingredients.
Positive Zacks ESP:
Earnings Surprise Prediction or
, which represents the difference between the Most Accurate
estimate and the Zacks Consensus Estimate, is at +7.41%. This is
very meaningful and a leading indicator of a likely positive
earnings surprise for shares.
Zacks Rank #3 (Hold):
Note that stocks with Zacks Ranks of #1, #2 and #3 have a
significantly higher chance of beating earnings. The sell rated
stocks (#4 and #5) should never be considered going into an
The combination of EMC's Zacks Rank #3 and +7.41% ESP makes us
very confident in looking for a positive earnings beat.
What is Driving the Better Than Expected
We believe that EMC is well positioned to benefit from
incremental data center hardware spending, going forward. EMC's
vast product portfolio, which has products suitable for any kind
of budget, will boost its market share, going ahead.
Additionally, aggressive share repurchase will drive earnings,
However, increasing competition from the likes of
) and a sluggish IT spending outlook for the next couple of years
will continue to keep margins under pressure in the near term.
Other Stocks to Consider
EMC is not the only firm looking up this earnings season. We also
see likely earnings beat coming from this industry peer:
On Semiconductor Corp.
), Earnings ESP of +6.67% and Zacks #1 Rank (Strong Buy)