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Flash memory solutions provider, SanDisk Corp. (SNDK - Analyst Report), is set to report fourth-quarter 2013 results on Jan 22. Last quarter, the company posted a positive earnings surprise of 23.77%. The company has a positive earnings surprise of 27.94% over the trailing four quarters. Let us see how things are shaping up for this announcement.

Growth Factors This Past Quarter

Enterprise Solid State Drives remains the growth driver for SanDisk coupled with its strong product portfolio comprising mobile cards, imaging cards, USB Flash Drive and diversified client base. Moreover, the acquisition of SMART Storage Systems is expected to expand its product portfolio.

However, continued lackluster PC sales, European issues, competition from Micron Technology and currency fluctuations remain the headwinds for the company. Moreover, the expected increase in expenses could impact results in the near term.

Earnings Whispers?

Our proven model does not conclusively show that SanDisk will beat earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #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 $1.47. Hence, the difference is 0.00%.

Zacks Rank: SanDisk’s Zacks Rank #3 (Hold), when combined with a 0.00% ESP makes surprise prediction difficult.

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 that they have the right combination of elements to post an earnings beat this quarter:

Cirrus Logic (CRUS - Snapshot Report), with Earnings ESP of +4.41% and a Zacks Rank #1 (Strong Buy).

Western Digital Corp (WDC - Analyst Report), with Earnings ESP of +0.96% and a Zacks Rank #1.

Seagate Technology (STX - Analyst Report), with Earnings ESP of +1.44% and a Zacks Rank #1.

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