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We expect Research in Motion Limited (BBRY - Analyst Report), the Canadian handset manufacturer, to surpass expectations when it reports fourth-quarter fiscal 2013 results before the opening bell on Mar 28, 2013.

Why a Likely Positive Surprise?

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

Positive Zacks ESP: Expected Surprise Prediction or ESP (Read: Zacks Earnings ESP: A Better Method), which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, stands at +6.90%. This is a meaningful and leading indicator of a likely positive earnings surprise.

Zacks #3 Rank (Hold): BBRY currently has a Zacks Rank #3. Note that the stocks with Zacks Ranks of #1, #2 and #3 have a significantly higher chance of beating the earnings. 

The combination of BBRY’s Zacks Rank #3 (Hold) and +6.90% ESP makes us confident of a positive earnings beat on Mar 28, 2013.

What's Driving the Positive Sentiment?

BBRY is poised for a better performance as the company’s newly launched BB10 operating system-based smartphone Z10 is receiving good customer response in the global market. BBRY has made significant development in its latest platform by enriching it with popular applications and is also making strong investment in promoting its latest operating platform.

However, the latest touch screen based device could impact the sales of company’s legacy QRT smartphones in the upcoming quarters.

Reportedly, the new device is performing well in Canada, UK and UAE and has recently been launched in Malaysia, Singapore and India. Recently, BBRY announced that it has witnessed a strong customer switch from other OS platforms to their latest BB10-based device.

However, sustainability of the current momentum and the rise in material costs on account of the use of expensive parts, remain the near-term headwinds for the company.

Other Stocks to Consider

Other companies you may want to consider on the basis of our model, which shows that they have the right combination of elements to post an earnings beat this quarter, are as follows:

Rogers Communications Inc. (RCI - Analyst Report) has an Earnings ESP of +2.60% and carries a Zacks Rank #2 (Buy).

Juniper Networks Inc. (JNPR - Analyst Report) has earnings ESP of +6.67% and carries a Zacks Rank #2 (Buy).

Netflix Inc. (NFLX - Analyst Report) has earnings ESP of +5.56% and carries a Zacks Rank #2 (Buy).

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