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Xperi (XPER) to Report Q4 Earnings: What's in the Cards?

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Xperi Corporation (XPER - Free Report) is set to release fourth-quarter 2018 results on Feb 20, after the bell. In the last reported quarter, the company delivered positive earnings surprise of 16.7%.

Shares of the company have rallied 38.9% in the past six months, against 12.4% decline of the industry.

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

Factors at Play

Xperi’s product licensing business is expected to stay robust as the fourth quarter is a seasonally strong period. Partnerships with IMAX and Cineplex are enabling the company with market expansion and penetration.Xperi’s automotive business is likely to be in good shape on the back of strong DMS and HD radio businesses.

The company’s home market is expected to benefit from increased AVR sound bar and TV customer penetration driven by the greater adoption of the virtual X and DTSX solutions.

The IP licensing and semiconductor packaging business is expected to benefit from growing interest in the company’s hybrid bonding solutions. It has engaged multiple partners in evaluations of the DBI technology for memory applications including 3D NAND and DRAM.

Zacks Model Suggests a Beat

Please note that 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Xperi has a Zacks Rank #3 and an Earnings ESP of 0.00%, a combination that makes surprise prediction difficult.

Stocks with a Zacks Rank #4 (Sell) or #5 (Strong Sell) are best avoided, especially if they have a negative Earnings ESP.

Stocks to Consider

Here are a few stocks from the broader Zacks Business Services sector that investors may consider as our model shows that these have the right combination of elements to beat estimates.

Copart (CPRT - Free Report) has Earnings ESP of +1.63% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

EVO Payments, Inc has an Earnings ESP of +1.89% and a Zacks Rank #3.

Conduent Incorporated (CNDT - Free Report) has Earnings ESP of +0.95% and a Zacks Rank #3.

Zacks' Top 10 Stocks for 2019

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