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AVG Technologies (AVG) Q1 Earnings: Stock to Disappoint?

AVG Technologies N.V. AVG is set to report first-quarter 2016 results on Apr 27. Last quarter, the company posted a positive earnings surprise of 4.88%.

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

Factors to Consider

AVG Technologies offers antivirus and Internet security products. Despite persistent macro uncertainties, the company seems to be positive due to a healthy security market, strong product line-up, deal wins and investment plans, which should boost its performance in the to-be-reported quarter.

Previous results show that AVG Technologies has gained from the rising demand for cyber security. Notably, the company has been witnessing a higher number of large deal signings over the past few quarters, which should again aid fourth-quarter results.

Meanwhile, with the ongoing advancements in technology, organizations are increasingly adopting the bring-your-own-device (BYOD) policy. While BYOD has enhanced employee productivity with anytime, anywhere access, it has become all the more necessary for companies to enforce stringent data security measures.

However, an uncertain economic environment, competitive pressure from Symantec Corp. SYMC and currency headwinds are likely to have a negative impact on the upcoming results at AVG Technologies.

Earnings Whispers

Our proven model does not conclusively show that AVG Technologies will beat estimates this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.

Zacks ESP: ESP for AVG Technologies is 0.00%. This is because the Most Accurate estimate of 37 cents stands in line with the Zacks Consensus Estimate.

Zacks Rank: AVG Technologies carries a Zacks Rank #4 (Sell). As it is, we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement.

Stocks to Consider

Here are a couple of stocks which you may consider, as our model shows that they have the right combination of elements to post an earnings beat this quarter:

Barracuda Networks Inc. CUDA, with an Earnings ESP of +200.00% and a Zacks Rank #1.

Boyd Gaming Corp. BYD, with an Earnings ESP of +36.00% and a Zacks Rank #1.

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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
BOYD GAMING CP (BYD): Free Stock Analysis Report
SYMANTEC CORP (SYMC): Free Stock Analysis Report
AVG TECHNOLOGS (AVG): Free Stock Analysis Report
BARRACUDA NTWRK (CUDA): Free Stock Analysis Report
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