Rambus (RMBS) To Report Q1 Earnings: What's In The Cards?

Rambus, Inc. (NASDAQ:RMBS) is slated to release first-quarter 2018 results on May 7. Notably, Rambus surpassed the Zacks Consensus Estimate in three of the trailing four quarters, with an average positive surprise of 8.2%.

Let’s take a look at how things are shaping up prior to this announcement.

Factors to Consider

We believe strong adoption of an innovative portfolio will drive Rambus’ top line in the soon-to-be reported quarter.

The company recently announced that it is developing hybrid memory systems in collaboration with International Business Machines (NYSE:IBM), primarily for use in future data centers.

In January, the company announced the launch of GDDR6 (Graphics Double Data Rate) Memory PHY IP Core aimed at artificial intelligence (AI), ADAS (advanced driver assistance systems), networking and cryptocurrency mining applications.

Rambus is also taking up initiatives to strengthen its position in the Internet of Things (IoT) industry. The company along with Cybertrust Japan Co., Ltd demonstrated Mitsufuji hamon bio-monitoring wearable at the Consumer Electronics Show (CES) in Las Vegas in January. The wearable features Rambus CryptoManager IoT Security Service and the Cybertrust Japan Secur IoT Platform for monitoring security.

At the Mobile World Congress in Barcelona held in February, Rambus demonstrated its CryptoManager IoT security service, mobile payment and smart ticketing solutions. These initiatives are expected to spread awareness about the company’s products thereby driving the company’s financials in the near-term

Rambus, Inc. Price and EPS Surprise

Rambus, Inc. Price and EPS Surprise | Rambus, Inc. Quote

What the Zacks Model Says

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. The Sell-rated stocks (Zacks Rank #4 or #5) are best avoided.

Rambus has a Zacks Rank #3 and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are some companies that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:

Microchip Technology Incorporated (NASDAQ:MCHP) has an Earnings ESP of +0.15% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here

Arrow Electronics, Inc. (NYSE:ARW) has an Earnings ESP of +0.66% and a Zacks Rank #2.

Analog Devices, Inc. (NASDAQ:ADI) has an Earnings ESP of +0.20% and a Zacks Rank #2.

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