Tessera Tech. Inc
) is set to report first quarter 2013 results on Apr 25. Last
quarter it reported in-line results. Let's see how things are
shaping up for this announcement.
Growth Factors This Past Quarter
Tessera posted weak results due to softness in both the
Intellectual Property and Digital Optics segments. Tessera
continues to invest in the business, which resulted in escalating
costs and weaker margins.
However, management is positive about its partnership with
Hynix (an 8-year contract) and STATS ChipPAC (5-year contract)
which is likely to boost its revenue in the future. It is also
developing other licensable technology beyond the traditional
packaging area which may translate to additional revenue going
Our proven model does not conclusively show that Tessera 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 27 cents. This is a difference of 0.00%.
Zacks Rank #2 (Buy):
Tessera's Zacks Rank #2 (Buy) 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:
AMAZON.COM INC (AMZN): Free Stock Analysis
INTERSIL CORP (ISIL): Free Stock Analysis
LINKEDIN CORP-A (LNKD): Free Stock Analysis
TESSERA TEC INC (TSRA): Free Stock Analysis
To read this article on Zacks.com click here.
), Earnings ESP of +300.0% and Zacks Rank #3 (Hold)
), Earning ESP of +62.5% and Zacks Rank #3 (Hold)
), Earnings ESP of +100.0% and Zacks Rank #3 (Hold)