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Gigamon (GIMO) to Report Q3 Earnings: What's in Store?

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Gigamon Inc.GIMO is scheduled to report third-quarter 2015 results on Oct 22. Last quarter, the network traffic management software provider posted in-line results.

Let us see how things are shaping up for this announcement.

Factors to Consider

Gigamon's product launches remain the growth catalysts. The GigaSMART and GigaVUE-HC2 platforms are witnessing increased adoption. Moreover, the company is adding clients, which should boost third-quarter results.

However, with intensifying competition from the likes of Juniper Networks Inc. JNPR and Cisco, the company is witnessing pricing challenges. Therefore, to retain market share, the company may have to lower the prices of its products and services, in turn affecting profitability.

Earnings Whispers

Our proven model does not conclusively show that Gigamon will beat earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.

Zacks ESP: Both the Most Accurate estimate and the Zacks Consensus Estimate stand at 3 cents per share. Hence, the difference is 0.00%.

Zacks Rank: Gigamon's Zacks Rank #3 increases the predictive power of ESP. However, we need to have a positive ESP to be confident about an earnings surprise.

We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions momentum.

Stocks to Consider

Here are some companies which you may consider, as our model shows that they have the right combination of elements to post an earnings beat this quarter:

Boyd Gaming Corp. BYD , with an Earnings ESP of +20.00% and a Zacks Rank #1.

Fiserv Inc. FISV , with an Earnings ESP of +3.09% and a Zacks Rank #2.

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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

FISERV INC (FISV): Free Stock Analysis Report

JUNIPER NETWRKS (JNPR): Free Stock Analysis Report

BOYD GAMING CP (BYD): Free Stock Analysis Report

GIGAMON INC (GIMO): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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