) is set to report first quarter fiscal 2014 results on Oct 23.
Last quarter it posted a 2.94% negative surprise. Let's see how
things are shaping up for this announcement.
Growth Factors This Past Quarter
In the fourth quarter of 2013, Molex missed the Zacks Consensus
Estimate by 2 cents or 6.8% as a result of weaker-than-expected
revenue and a higher tax rate. Rising costs coupled with
stronger growth in low-margin segments made matters worse.
Molex expects revenue of $890-$930 million in the first quarter
of 2014. The EPS is expected to be 35 to 39 cents a share,
assuming a tax rate of 30%-32%.Molex should do well in the
longer-term, as its customers introduce new products targeting
the BRIC countries, as well as Vietnam and Thailand, where growth
is expected to be stronger than in other parts of the world.
Our proven model does not conclusively show that Molex will beat
earnings this quarter. That is because a stock needs to have both
and a Zacks Rank of #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 37 cents. Hence, the difference is 0.00%.
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:
JARDEN CORP (JAH): Free Stock Analysis Report
MICROCHIP TECH (MCHP): Free Stock Analysis
MOLEX INC (MOLX): Free Stock Analysis Report
SANDISK CORP (SNDK): Free Stock Analysis
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), Earnings ESP of +2.84% and a Zacks Rank #1 (Strong Buy)
Microchip Technology Inc
), Earnings ESP of +0.0% and a Zacks Rank #1 (Strong Buy)
), Earnings ESP of 2.00% and a Zacks Rank #1 (Strong Buy)