) is set to report its third-quarter 2013 results on Oct 24. Last
quarter, it posted a 50.0% positive surprise. Let's see how
things are shaping up for this announcement.
Growth Factors This Past Quarter
PMC-Sierra's strength in the Optical and Mobile market
segments led to higher sales growth rates in the second quarter
of 2013. However, the company's Storage segment was impacted by
the continued sluggish enterprise spending. Gross margins
expanded in the quarter, driven by higher revenues and a
favorable product mix.
For the third quarter, PMC-Sierra expects to generate revenues
in the range of $126-$134 million, up about 2% sequentially at
Our proven model does not conclusively show that PMC-Sierra
will beat earnings this quarter. This is because a stock needs to
have both a positive
and a Zacks Rank #1, 2 or 3 for this to happen. This is not the
case here as you will see below.
Both the Most Accurate estimate and the Zacks Consensus Estimate
stand at 7 cents. Hence, the difference is 0.00%.
Zacks Rank #3 (Hold):
PMC-Sierra's Zacks Rank #3 (Hold) when combined with a 0.0% ESP
makes surprise prediction difficult.
We caution against stocks with a Zacks Ranks #4 and #5 (Sell
rated stocks) going into the earnings announcement, especially
when the company is seeing negative estimate revisions
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:
Melco Crown Entertainment Ltd
), with an Earnings ESP of +6.45% and a Zacks Rank #1 (Strong
), with an Earnings ESP of +39.53% and a Zacks Rank #1 (Strong
SY Bancorp Inc.
), with an Earnings ESP of +4.08% and a Zacks Rank #1 (Strong
KEMPER CORP (KMPR): Free Stock Analysis
MELCO CROWN ENT (MPEL): Free Stock Analysis
PMC-SIERRA INC (PMCS): Free Stock Analysis
S Y BANCORP INC (SYBT): Free Stock Analysis
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