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Ingram Micro Inc. (IM - Analyst Report) is set to report fourth-quarter fiscal 2013 results on Feb 13. Last quarter, it posted a positive surprise of 1.92%. Let us see how things are shaping up for this announcement.

Factors to Consider This Past Quarter

Ingram Micro posted mixed third-quarter results with the bottom line surpassing the Zacks Consensus Estimate but the top line missing the same. Ingram Micro has been striking distribution deals with a number of original equipment manufacturers thus expanding its product portfolio. Moreover, Ingram Micro’s exposure in cloud computing products is also expected to remain a key growth driver for the company.

We believe that the improving IT spending trend will help Ingram to post better results going forward. Also, the company’s focus on the high-margin market and strategic acquisitions to grow market share are encouraging.

Though Ingram Micro’s significant European exposure and a high debt burden are concerns, we remain fairly optimistic about the company’s strategic relationships with network giants such as Juniper Networks Inc. (JNPR - Analyst Report), Cisco (CSCO - Analyst Report) and International Business Machines Corp.

Earnings Whispers?

Our proven model does not conclusively show that Ingram Micro is likely to beat earnings this quarter. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 to surpass earnings estimates. However, that is not the case here due to the following factors:

Zacks ESP: The expected surprise prediction for Ingram Micro is 0.00% since both the Most Accurate estimate and the Zacks Consensus Estimate stand at 80 cents per share.

Zacks Rank: Ingram Micro’s Zacks Rank #2 (Buy) 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.

Another Stock to Consider

Here is another company, which you may want to consider as our model shows that it hasthe right combination of elements to post an earnings beat this quarter:

Zillow Inc. (Z - Snapshot Report), with Earnings ESP of +20.00% and a Zacks Rank #2.

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