We expect technology company
) to beat expectations when it reports second-quarter 2014 results
on Jul 17.
Why a Likely Positive Surprise?
Our proven model shows that Google is likely to beat earnings
because it has the right combination of two key ingredients.
, which represents the difference between the Most Accurate
estimate and the Zacks Consensus Estimate, stands at +1.36%. This
is very meaningful and a leading indicator of a likely positive
earnings surprise for shares.
Google has a Zacks Rank #3 (Hold). Note that stocks with a Zacks
Rank #1, 2 or 3 have a significantly higher chance of beating
earnings estimates. The Sell-rated stocks (#4 and 5) should never
be considered going into an earnings announcement.
The combination of Google's Zacks Rank #3 and a +1.36% ESP makes
us reasonably confident in looking for a positive earnings
What is Driving the Better-than-Expected Earnings?
Google's new products, its increasing share in the mobile
market, solid execution and cost control measures are expected to
generate a positive earnings surprise in the upcoming quarter.
Additionally, Google's success in the tablet market and
diversification of its business into a fast-growing e-Commerce
segment (both retail and payment platforms), focus on the
wearables, its Nexus and Chromebook platforms and new offerings are
quite encouraging. We believe Google's growth strategies and solid
execution will help the company to continue on the growth path.
Other Stocks to Consider
Google is not the only firm looking up this earnings season. We
also see likely earnings beats coming from these companies:
), with anEarningsESP of +2.08% and a Zacks Rank #1 (Strong
), with an Earnings ESP of +3.13% and a Zacks Rank #1.
), with an Earnings ESP of +3.10% and a Zacks Rank #1.
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