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Netlist (NLST) to Report Q3 Earnings: What's in the Cards?

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Netlist, Inc. (NLST - Free Report) is expected to release third-quarter fiscal 2018 results on Nov 8.

Notably, the company missed the Zacks Consensus Estimate in one of the trailing four quarters recording average negative surprise of 33.3%.

In the last reported quarter, the company reported loss of 4 cents per in line with the Zacks Consensus Estimate. Revenues were $8 million, down 27.6% from the year-ago quarter. Further, the figure lagged the Zacks Consensus Estimate of $10 million.

What to Expect

The Zacks Consensus Estimate for earnings shows an increase of 40% year over year to a loss of 2 cents per share for the to-be reported quarter. The consensus estimate for revenues is pegged at $8.9 million, down 1.2% year over year.

Let’s see how things are shaping up prior to this announcement.

Factors to Consider

Netlist continues to benefit from its nonvolatile (“NV”) memory products, such as EXPRESSvault PCIe, a plug-and-play memory card and NVvault DDR3 NVDIMM. These products offer data acceleration and data protection for server appliances, designed to meet the needs of x86-based platform designers.

We expect the company’s product launches and strategies to gain traction in the server market and bolster its near-term performance further.

The company also entered into an agreement with ScaleMP, a premier software-defined computing company. The partnership will help Netlist to provide maximum consumer satisfaction via higher adoption of HybriDIMM’s cost-effective fast storage and memory know-hows.

The company recently announced a partnership with Nyriad to boost its products using Nyriad's software. The companies have collaborated to develop GPU-accelerated storage to address the need of a storage system that facilitates fast data applications and new technologies.

We believe all these factors will positively impact the company’s to-be-reported results.

However, with stiff competition and pricing pressure remains a woe.

Netlist, Inc. Price and EPS Surprise

 

Netlist, Inc. Price and EPS Surprise | Netlist, Inc. Quote

What Our Model Says

According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. Zacks Rank #4 (Sell) or 5 (Strong Sell) stocks are best avoided. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Netlist Technologies has an Earnings ESP of 0.00% and a Zacks Rank #2.

Stocks With Favorable Combination

Here are some companies you may want to consider as our model shows that these stocks have the right combination of elements to post an earnings beat:

Adobe Systems Incorporated (ADBE - Free Report) has an Earnings ESP of +0.19% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Northern Oil and Gas, Inc. (NOG - Free Report) has an Earnings ESP of +6.52% and a Zacks Rank #2.

Activision Blizzard, Inc has an Earnings ESP of +1.75% and a Zacks Rank #3.

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