Spreadtrum (SPRD)

Spreadtrum Communications, Inc. (SPRD - Snapshot Report) reported a solid second-quarter performance in early August that has helped keep this Chinese fabless semiconductor provider on the Zacks #1 Rank Top Performers List.

Now, we are less than two weeks away from SPRD’s third quarter report on Nov 9, and fortunately earnings estimates for the period are on the rise. Presently, the Zacks Consensus Estimate for the quarter is 67 cents per share, or nearly 20% higher than three months ago. There has even been a 1.5% improvement in the past seven trading days.

If this company, which specializes in advanced technology for 2G and 3G wireless communications standards, can put together another encouraging performance, then it may be able to sustain an enviable Zacks Rank for the foreseeable future.

Today, it was one of the best Zacks #1 Rank performers with a price over $5. Shares advanced approximately 7.75%. Volume practically reached 1.85 million shares, compared to the daily average of 1.127 million.

One of the great advantages of SPRD is its location. Chinese consumers are spending more while the country’s economy continues to churn. In the second quarter, the company’s revenue grew for both its 2.5G and 3G product lines. It is also expanding its presence in emerging markets.

The second quarter saw earnings per ADS of 60 cents, which surpassed the Zacks Consensus Estimate by more than 9% while also surging past last year’s 21 cents. Total revenue jumped 124.2% to US$160.2 million. It forecasted revenue between US$172 million and US$178 million for the third quarter.

As the graph below shows, earnings estimates have been moving steadily higher for Spreadtrum Communications. The Zacks Consensus Estimate for 2011 is currently $2.46 per share, which is up 18.3% from three months ago. There has also been a penny improvement over the past week.

As welcome a trend as that is, SPRD’s 2012 outlook is even more impressive. The Zacks Consensus Estimate is up 13.5% in three months to $2.69. In addition, the past seven days have seen an improvement of 10 cents, or nearly 4%.

Analysts are now expecting year-over-year profit improvement of more than 9%.

Other Zacks #1 Rank Top Performers on Wednesday included Rentech Inc. (RTK - Snapshot Report, +18.33%) and VIST Financial Corp. (VIST - Snapshot Report, +17.44%).

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Read the full analyst report on RTK

Read the full analyst report on VIST

Read the full analyst report on SPRD