Increased Earnings Estimates Seen for MellaNox Technologies (MLNX): Can It Move Higher?

MellaNox Technologies, Ltd. (MLNX) is an end-to-end InfiniBand and Ethernet interconnect solutions and services provider that could be an interesting play for investors. That is because, not only does the stock have decent short-term momentum, but it is seeing solid activity on the earnings estimate revision front as well.

These positive earnings estimate revisions suggest that analysts are becoming more optimistic on MLNX’s earnings for the coming quarter and year. In fact, consensus estimates have moved sharply higher for both of these time frames over the past four weeks, suggesting that Mellanox could be a solid choice for investors.

Current Quarter Estimates for MLNX

In the past 30 days, 4 estimates have gone higher for Mellanox while none has gone lower in the same time period. The trend has been pretty favorable too, with loss estimates narrowing down from 4 cents a share 30 days ago, to a penny today, a move of 75.0%.

Current Year Estimates for MLNX

Meanwhile, Mellanox’s current year figures are also looking quite promising, with 6 estimates moving higher in the past month, compared to none moving lower. The consensus estimate trend has also seen a boost for this time frame, narrowing down from loss of 22 cents per share 30 days ago to loss of 11 cents per share today, an increase of 50.0%.

Bottom Line

The stock has also started to move higher lately, adding 10.4% over the past four weeks, suggesting that investors are starting to take note of this impressive story. So investors may definitely want to consider this Zacks Rank #3 (Hold) stock to profit in the near future.

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MELLANOX TECH LTD ORD (MLNX): Free Stock Analysis Report


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