Will EMC Corp. (EMC) Beat Earnings Estimates? - Analyst Blog
21 April 2014 - 5:00PM
Zacks
We expect EMC
Corporation (EMC) to beat expectations when it reports
first quarter 2014 results on Apr 23. Last quarter, it posted a
4.0% positive surprise.
Let’s see how things are shaping up for this announcement.
Why a Likely Positive Surprise?
Our proven model shows that EMC is likely to beat earnings because
it has the right combination of two key ingredients.
Positive Zacks ESP: Earnings Surprise Prediction
or Earnings ESP, which represents the difference between the Most
Accurate estimate and the Zacks Consensus Estimate, is at +7.41%.
This is very meaningful and a leading indicator of a likely
positive earnings surprise for shares.
Zacks Rank #3 (Hold): 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 earnings announcement.
The combination of EMC’s Zacks Rank #3 and +7.41% ESP makes us very
confident in looking for a positive earnings beat.
What is Driving the Better Than Expected
Earnings?
We believe that EMC is well positioned to benefit from incremental
data center hardware spending, going forward. EMC’s vast product
portfolio, which has products suitable for any kind of budget, will
boost its market share, going ahead. Additionally, aggressive share
repurchase will drive earnings, going forward.
However, increasing competition from the likes of IBM
Corp. (IBM) and Hewlett-Packard (HPQ) and
a sluggish IT spending outlook for the next couple of years will
continue to keep margins under pressure in the near term.
Other Stocks to Consider
EMC is not the only firm looking up this earnings season. We also
see likely earnings beat coming from this industry peer:
On Semiconductor Corp. (ONNN), Earnings ESP of
+6.67% and Zacks #1 Rank (Strong Buy)
EMC CORP -MASS (EMC): Free Stock Analysis Report
HEWLETT PACKARD (HPQ): Free Stock Analysis Report
INTL BUS MACH (IBM): Free Stock Analysis Report
ON SEMICON CORP (ONNN): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
HP (NYSE:HPQ)
Historical Stock Chart
Von Jun 2024 bis Jul 2024
HP (NYSE:HPQ)
Historical Stock Chart
Von Jul 2023 bis Jul 2024