Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

We expect professional networking solution provider EMC Corporation (EMC - Analyst Report) to beat expectations when it reports third-quarter 2013 results on Oct 22, 2013.

Why a Likely Positive Surprise?

Our proven model shows that EMC is likely to beat the earnings estimate because it has the right combination of two key ingredients.

Positive Zacks ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate is at +2.70%. This is very meaningful and a leading indicator of a likely positive earnings surprise for shares.

Zacks Rank #2 (Buy): Note that stocks with Zacks Ranks of #1, #2 and #3 have a significantly higher chance of beating estimates. The sell rated stocks (#4 and #5) should never be considered going into an earnings announcement. 

The combination of EMC Corp’sZacks Rank #2 and a +2.70% ESP makes us very confident in looking for an earnings beat on Oct 22.

What is Driving the Better than Expected Earnings?

EMC is well positioned to benefit from incremental data center hardware spending going forward. We believe that EMC’s vast product portfolio, which has products suitable for any kind of budget, will boost its market share going forward. Additionally, aggressive share repurchase will drive earnings going forward.

Moreover, EMC revenues are expected to benefit from the new mid-range VNX systems (pent-up demand), along with the refresh of its backup and recovery systems and the increase in demand of flash products in the second half of the year.

Moreover, the recently announced Project Nile is also likely to benefit the company in the long run, although companies such as International Business Machines Corp. (IBM - Analyst Report) offer competitive products to grab additional marketshare.

Other Stocks to Consider

EMC Corp is not the only firm looking up this earnings season. We also see likely earnings beats coming from these 2 industry peers:

SanDisk Corporation(SNDK - Analyst Report), Earnings ESP of +2.84% and a Zacks Rank #1 (Strong Buy)

Asml Holding NV(ASML - Snapshot Report), Earnings ESP of +4.17% and a Zacks Rank #3 (Hold)

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
BITAUTO HOLD BITA 35.33 +14.82%
ANI PHARMACE ANIP 24.79 +14.66%
E-HOUSE CHIN EJ 10.99 +9.24%
CANADIAN SOL CSIQ 26.97 +7.15%
INTL CONS AI ICAGY 33.30 +5.38%