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Bull Of The Day: Xcerra (XCRA)

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Xcerra XCRA just pulled off a triple play of sorts.  The company reported earnings and beat on top, beat on bottom and raised guidance.  I love to see stocks beat and raise as these stocks tend to outperform for the next several months.  Normally when I see a stock beat and raise, it becomes a Zacks Rank #1 (Strong Buy), but this stock already held the coveted Rank before the report.  Now it is the Bull of the Day.

Recent Earnings Report

XCRA beat the Zacks Consensus of a loss of $0.02 by $0.08 when they reported a gain of $0.06 for the most recent quarter.  Revenues came in at $80.1M and that was ahead of the $78.9M estimate and represented growth of 10.8% from year ago levels.

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Company Description

Xcerra Corporation engages in designing, manufacturing, and marketing automatic test equipment for the semiconductor industry. Its product portfolio includes Diamond platform; X-Series platform; and ASL platform. The Company also offers various services, such as installation and maintenance of test systems, servicing of spare parts, parts and labor warranties on test systems and instruments, and training on the maintenance and operation of test systems. Xcerra Corporation, formerly known as LTX-Credence Corporation, is headquartered in Norwood, Massachusetts.

Guiding Higher

The company said the next three months are going to be better than what was previously expected. They guided EPS to a range of $0.10 - $0.14 compared to an $0.08 estimate.  Revenues are expected to be $95M - $99M compared to the $89.75M estimate.

Further, in the press release the company noted they plan to ship a record number of Diamondx systems during the current quarter.


The beat is pretty fresh and all the reports are clearly not in yet.  The Zacks Consensus Estimate for 2017 is holding still at $0.22 as is the estimate for 2018 at $0.56.

To me, this means that estimates have not yet moved and we could be in for a big surprise.

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