ON Semiconductor Corp.
) to beat expectations when it reports first quarter 2014 results
on May 1.
Why a Likely Positive Surprise?
Our proven model shows that ON Semiconductor is likely to beat
estimates because it has the right combination of two key
Positive Zacks ESP
: Earnings Surprise Prediction or
, which represents the difference between the Most Accurate
estimate and the Zacks Consensus Estimate, is at +6.67%. This is
very meaningful and a leading indicator of a likely positive
earnings surprise for shares.
Zacks Rank #1 (Strong Buy)
: Note that stocks with Zacks Ranks of #1, #2 and #3 have a
significantly higher chance of beating earnings. The Sell-rated
stocks (#4 and #5) should never be considered going into an
The combination of ON Semiconductor's Zacks Rank #1 and +6.67%
ESP makes us very confident about a positive earnings beat on May
What's Driving the Better Than Expected
ON Semiconductor's launch of new products and numerous design
wins in communication, automotive and industrial markets are
expected to lead to a positive earnings surprise in the upcoming
Moreover, ON Semiconductor's recent acquisition of Truesense
Imaging, Inc. will make it the chief supplier of a wide range of
high-geared image sensors for applications in the high-margin
industrial end-market. Thus, the deal will prove to be accretive
to both margins and earnings. The positive trend is seen in the
trailing four-quarter average surprise of 17.6%, which was
greatly helped by the 21.4% surprise in the last-reported
Other Stocks to Consider
ON Semiconductor is not the only firm looking up this earnings
season. We also see likely earnings beats coming from these 3
technology sector peers:
ADV ENERGY INDS (AEIS): Free Stock Analysis
INTUIT INC (INTU): Free Stock Analysis Report
MARVELL TECH GP (MRVL): Free Stock Analysis
ON SEMICON CORP (ONNN): Free Stock Analysis
To read this article on Zacks.com click here.
Advanced Energy Industries, Inc.
), Earnings ESP of +10.00% and Zacks Rank #1 (Strong Buy)
), Earnings ESP of +1.18% and Zacks Rank #2 (Buy)
Marvell Technology Group Ltd.
), Earnings ESP of +6.67% and Zacks Rank #2