j2 Global Inc. ( JCOM ) is set to release its fourth-quarter 2014 financial numbers on Feb 12, after market close.
In the last quarter, the company delivered a positive 3.85% earnings surprise. Let's see how things are shaping up for this announcement.
Factors at Play this Quarter
j2 Global's successful diversification into cloud business and initiation of the intellectual property program, are likely to act as strong positives for the company. Moreover, The company's inorganic expansion plans will strengthen its global presence to a large extent.
However, escalating debts coupled with integration risks associated with its recent acquisitions may act as headwinds for the company. Moreover, the company's series of acquisitions may put pressure on its cash position in the forthcoming quarters.
Our proven model does not conclusively show that j2 Global is likely to beat the Zacks Consensus Estimate this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or at least 3 (Hold) for this to happen. Unfortunately, this is not the case here as elaborated below.
Zacks ESP : The Most Accurate estimate and the Zacks Consensus Estimate are poised at 91 cents. Hence, the ESP is 0.00%.
Zacks Rank : j2 Global carries a Zacks Rank #3 (Hold). While this increases the predictive power, we also need to have a positive ESP to be confident of an earnings surprise.
Meanwhile, we caution against stocks with a Zacks Rank #4 and 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are some companies you may want to consider as our model shows these have the right combination of elements to post an earnings beat this quarter.
Synchronoss Technologies, Inc. ( SNCR ) with an Earnings ESP of +12.12% and a Zacks Rank #1.
Juniper Networks, Inc. ( JNPR ) with an Earnings ESP of +4.76% and a Zacks Rank #1.
Comcast Corporation ( CMCSA ) with an Earnings ESP of +1.30% and a Zacks Rank #3.
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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.