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Molex Inc(MOLX) is set to report third quarter 2013 results on Apr 23. Last quarter it reported in line with estimates. Let’s see how things are shaping up for this announcement.

Growth Factors This Past Quarter

In the second quarter of 2013, Molex reported revenues of $967.7 million, up 5.5% sequentially and 12.8% year over year, exceeding management expectations of $930–$970 million (up 1-6% sequentially).

Molex is a leading player in the fast-growing connector market, with several secular growth drivers. However, the company appears to be witnessing more growth in lower-margin segments, which is impacting its profitability. Additionally, macro conditions in Europe are impacting results and the negative effect is expected to continue in the next few quarters.

Earnings Whispers?

Our proven model does not conclusively show that Molex is likely to beat earnings this quarter. That is because a stock needs to have both a positive Earnings ESP (Read: Zacks Earnings ESP: A Better Method)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 39 cents. This is a difference of 0.00%.

Zacks Rank #3 (Hold): Molex’s Zacks Rank #3 (Hold) lowers the predictive power of ESP because the Zacks Rank #3 when combined with an ESP of 0.00% 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:

Sandisk Corp. (SNDK - Analyst Report), Earnings ESP of +2.86% and Zacks Rank #1 (Strong Buy)

On Semiconductor Corp. (ONNN - Analyst Report), Earning ESP of +12.5% and Zacks Rank #2 (Buy)

Amazon.com (AMZN - Analyst Report), Earnings ESP of +100.0% and Zacks Rank #3 (Hold)

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