) is set to report second-quarter 2014 results on Nov 13. The
company delivered a positive earnings surprise of 8.82% in the
first quarter. Let's see how things are shaping up for this
Factors This Past Quarter
NetApp reported mixed first-quarter results wherein the bottom
line beat the Zacks Consensus Estimate but the top line lagged
the same. Although NetApp's year-over-year comparisons were
favorable, the company reported sequential declines in revenues.
Moreover, operating expenses increased sequentially. The
year-over-year growth was primarily driven by higher branded
revenues while original equipment manufacturer (OEM) revenues
Moreover, weak demand environment and competition from
) storage platform remain the concerns for the company.
Our proven model does not conclusively show that NetApp will
beat earnings this quarter. That is because a stock needs to have
both a positive
and a Zacks Rank #1, 2 or 3 for this to happen. That is not the
case here as you will see below.
Negative Zacks ESP:
The Most Accurate estimate stands at 42 cents, while the
Zacks Consensus Estimate is higher at 48 cents. That is a
difference of -12.5%.
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:
Best Buy Co., Inc.
), with Earnings ESP of +18.18% and a Zacks Rank #1 (Strong
Dish Network Corp.
), with Earnings ESP of +4.76% and a Zacks Rank #2 (Buy).
BEST BUY (BBY): Free Stock Analysis Report
DISH NETWORK CP (DISH): Free Stock Analysis
EMC CORP -MASS (EMC): Free Stock Analysis
NETAPP INC (NTAP): Free Stock Analysis Report
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