) is set to report fourth-quarter 2013 results on Jan 29. Last
quarter, it posted a 13.5% negative surprise. Additionally, the
company has posted an average negative earnings surprise of 0.09%
over the past four quarters.
Let's see how things are shaping up for this announcement.
Growth Factors this Past Quarter
EMC is well positioned to benefit from incremental data center
hardware spending going forward. The company'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 in the future.
EMC's aggressive acquisition strategy has been largely
responsible for the company's positioning. Acquisitions have
helped the company to enhance its presence in the emerging
markets of cloud computing, big data, mobile and security
However, increasing competition from the likes of IBM and Hewlett
Packard, and a sluggish IT spending outlook for the next two
years will continue to keep margins under pressure in the near
Our proven model does not conclusively show that EMC 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: That is because the Most Accurate
estimate stands at $0.48 while the Zacks Consensus Estimate is
$0.50. That makes a difference of -4.0%.
Zacks Rank #4 (Sell): 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 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:
Melco Crown Entertainment Limited
), earnings ESP of +2.50% and a Zacks Rank #1 (Strong Buy).
On Semiconductor Corp.
), earnings ESP of +14.29% and a Zacks Rank #2 (Buy).
Multimedia Games Holding Company, Inc.
), earnings ESP of +10.35% and Zacks Rank #2.
EMC CORP -MASS (EMC): Free Stock Analysis
MULTIMEDIA GAME (MGAM): Free Stock Analysis
MELCO CROWN ENT (MPEL): Free Stock Analysis
ON SEMICON CORP (ONNN): Free Stock Analysis
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