Back to top

Analyst Blog

Molex Inc is set to report first quarter fiscal 2014 results on Oct 23. Last quarter it posted a 2.94% negative surprise. Let’s see how things are shaping up for this announcement.

Growth Factors This Past Quarter

In the fourth quarter of 2013, Molex missed the Zacks Consensus Estimate by 2 cents or 6.8% as a result of weaker-than-expected revenue and a higher tax rate.  Rising costs coupled with stronger growth in low-margin segments made matters worse.

Molex expects revenue of $890-$930 million in the first quarter of 2014. The EPS is expected to be 35 to 39 cents a share, assuming a tax rate of 30%-32%.Molex should do well in the longer-term, as its customers introduce new products targeting the BRIC countries, as well as Vietnam and Thailand, where growth is expected to be stronger than in other parts of the world.

Earnings Whispers?    

Our proven model does not conclusively show that Molex will beat earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank of #1, 2 or 3 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 37 cents. Hence, the difference is 0.00%.

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

Other Stocks to Consider    

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

  • SanDisk Corporation (SNDK - Analyst Report), Earnings ESP of +2.84% and a Zacks Rank #1 (Strong Buy)
  • Microchip Technology Inc (MCHP - Analyst Report), Earnings ESP of +0.0% and a Zacks Rank #1 (Strong Buy)
  • Jarden Corp (JAH - Snapshot Report), Earnings ESP of 2.00% and a Zacks Rank #1 (Strong Buy)

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

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 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
UTD THERAPE… UTHR 117.83 +28.51%
TRIQUINT SE… TQNT 20.67 +6.52%
RF MICRO DE… RFMD 12.47 +6.04%
VASCO DATA… VDSI 14.77 +4.68%
BANCO DO BR… BDORY 15.53 +3.95%