The Zacks Analyst Blog Highlights: BJ's Restaurants, Maxim Integrated
Products, LinkedIn, Intersil and Amazon.com
CHICAGO, April 24, 2013
CHICAGO, April 24, 2013 /PRNewswire/ --Zacks.com announces the list of stocks
featured in the Analyst Blog. Every day the Zacks Equity Research analysts
discuss the latest news and events impacting stocks and the financial markets.
Stocks recently featured in the blog include BJ's Restaurants Inc.
(Nasdaq:BJRI), Maxim Integrated Products (Nasdaq:MXIM), LinkedIn Corp.
(NYSE:LNKD), Intersil Corp. (Nasdaq:ISIL) and Amazon.com (Nasdaq:AMZN).
Get the most recent insight from Zacks Equity Research with the free Profit
from the Pros newsletter: http://at.zacks.com/?id=5513
Here are highlights from Tuesday's Analyst Blog:
Is BJ's Restaurants Expected to Miss?
BJ's Restaurants Inc. (Nasdaq:BJRI) prepares to release its first-quarter 2013
results after the closing bell on Thursday, Apr 25. Last quarter BJ's
Restaurants' earnings were in line with the Zacks Consensus Estimate. Let's
see how things are shaping up for this announcement.
Factors to Consider this Quarter
Continuous decline in comparable restaurant sales (comps) and increasing cost
may hurt the company's performance in the first quarter.
BJ's Restaurants' same-store sales growth has been sluggish in the past two
quarters. Even in the first seven weeks of first-quarter 2013, comps were down
0.5% in contrast to a positive 4% for the same period last year. Moreover,
with higher payroll taxes, delayed tax refund and increased gasoline prices,
the sales environment is also expected to remain choppy, as consumer spending
BJ's Restaurants' top-line growth is driven by several sales-building
measures, which are pushing up its cost structure. Management expects the
higher marketing spends to continue in the first quarter of 2013. We believe
that the continuous increase in costs will act as a major headwind for BJ's
Restaurants' profits in the to-be-reported quarter.
The Zacks Consensus Estimate for 2013 and 2014 has moved down mostly over the
last 60 days.
Our proven model does not conclusively show that BJ's Restaurants 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
Negative Zacks ESP: The Most Accurate Estimate stands at 26 cents per share
while the Zacks Consensus Estimate is higher at 28 cents per share. That is a
difference of -7.14%.
Zacks Rank #5 (Strong Sell): BJ's Restaurants carries a Zacks Rank #5 (Strong
Sell). We caution against stocks with Zacks Rank #4 and #5 (Sell rated stocks)
going into the earnings announcement, especially when the company is seeing
negative estimate revisions momentum which is exactly the case with BJ's
Will Maxim Miss Earnings Estimates?
Maxim Integrated Products (Nasdaq:MXIM) is set to report third quarter 2013
results on Apr 25. Last quarter it posted a 2% positive surprise. Let's see
how things are shaping up for this announcement.
Growth Factors This Past Quarter
Despite posting a year-over-year increase in the top line, primarily boosted
by consumer and computing end markets; higher costs and resultant contraction
in margins kept the lid on the company's earnings.
However, management is positive about the automotive end market as it won
several design wins in the last quarter. Steady growth in distributor design
registrations also boosted revenues. Maxim also witnessed stronger demand for
its femtocell offerings.
Maxim believes that its partnership with Avnet may result in new opportunities
in industrial markets.
Our proven model does not conclusively show that Maxim 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.
Negative Zacks ESP: The Most Accurate estimate stands at 41 cents while the
Zacks Consensus Estimate is at 42 cents. That is a difference of -2.38%.
Zacks Rank #2 (Buy): Maxim's Zacks Rank #2 (Buy) when combined with a negative
ESP 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
LinkedIn Corp. (NYSE:LNKD), Earnings ESP of +300.0% and Zacks Rank #3 (Hold)
Intersil Corp. (Nasdaq:ISIL), Earning ESP of +62.5% and Zacks Rank #3 (Hold)
Amazon.com (Nasdaq:AMZN), Earnings ESP of +100.0% and Zacks Rank #3 (Hold)
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