) is set to report third quarter 2013 results on Apr 23. Last
quarter it reported in line with estimates. Let's see how things
are shaping up for this announcement.
Growth Factors This Past Quarter
In the second quarter of 2013, Molex reported revenues of
$967.7 million, up 5.5% sequentially and 12.8% year over year,
exceeding management expectations of $930-$970 million (up 1-6%
Molex is a leading player in the fast-growing connector
market, with several secular growth drivers. However, the company
appears to be witnessing more growth in lower-margin segments,
which is impacting its profitability. Additionally, macro
conditions in Europe are impacting results and the negative
effect is expected to continue in the next few quarters.
Our proven model does not conclusively show that Molex is
likely to beat earnings this quarter. That is because a stock
needs to have both a positive Earnings ESP (Read:
Zacks Earnings ESP: A Better Method
and a Zacks Rank #1, #2 or #3 for this to happen. That is not the
case here as you will see below.
Both the Most Accurate estimate and the Zacks Consensus Estimate
stand at 39 cents. This is a difference of 0.00%.
Zacks Rank #3 (Hold):
Molex's Zacks Rank #3 (Hold) lowers the predictive power of ESP
because the Zacks Rank #3 when combined with an ESP of 0.00%
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 momentum.
Other Stocks to Consider
Here are some other companies you may want to consider as our
model shows that they have the right combination of elements to
post an earnings beat this quarter:
), Earnings ESP of +2.86% and Zacks Rank #1 (Strong Buy)
On Semiconductor Corp.
), Earning ESP of +12.5% and Zacks Rank #2 (Buy)
), Earnings ESP of +100.0% and Zacks Rank #3 (Hold)
AMAZON.COM INC (AMZN): Free Stock Analysis
MOLEX INC (MOLX): Free Stock Analysis Report
ON SEMICON CORP (ONNN): Free Stock Analysis
SANDISK CORP (SNDK): Free Stock Analysis
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