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Rambus (RMBS) to Report Q2 Earnings: What's in the Cards?

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Rambus (RMBS - Free Report) is scheduled to report second-quarter 2020 results on Aug 3.

The Zacks Consensus Estimate for second-quarter revenues is pegged at $100.8 million, calling for a rise of 4.9%, year over year. The consensus mark for earnings is pegged at 25 cents per share, which suggests a significant improvement from the year-ago quarter’s break-even earnings.

The company’s earnings missed the Zacks Consensus Estimate in each of the trailing four quarters, the average negative surprise being 104.4%.

Let’s see how things have shaped up for the upcoming announcement.

Key Factors

Rambus’ quarterly performance is likely to have benefited from the current work-from-home and learn-from-home trends amid the COVID-19 pandemic.

Social-distancing measures to contain the spread of coronavirus have spurred demand for PCs, notebooks and other office equipment, and network peripherals apart from gaming and other leisure devices. Meanwhile, utilization of drones and other robots, contactless delivery tools, has also surged globally.

This, in turn, has fueled chip demand from PC manufacturers and data-center operators. Hence, Rambus, which offers components to semiconductor manufacturers, is anticipated to have gained from this scenario.

Moreover, Rambus’ second-quarter performance is likely to have gained from the growing momentum of tokenization solutions. In addition to mobile payments and retail, the company has expanded tokenization offerings in markets like account-based payments, e-commerce and blockchain.

What Our Model Says

Our proven model does not predict an earnings beat for Rambus this season. The combination of a positive Earnings ESP, and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.

Rambus currently carries a Zacks Rank of 3 and has an Earnings ESP of 0.00%.

Stocks With Favorable Combinations

Here are some companies, which, per our model, have the right combination of elements to post an earnings beat this quarter:

TakeTwo Interactive Software (TTWO - Free Report) has an Earnings ESP of +5.35% and carries a Zacks Rank of 2, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

AMETEK Inc. (AME - Free Report) has an Earnings ESP of +3.96% and carries a Zacks Rank of 2, currently.

KLA Corporation (KLAC - Free Report) has an Earnings ESP of +0.67% and currently carries a Zacks Rank of 2.

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

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