) is set to report its fourth quarter 2012 results on Feb 28.
Last quarter, it posted a +1.23% surprise. Let's see how things
are shaping up for this announcement.
Growth Factors This Past Quarter
CBI benefited from the rising demand for energy
infrastructure, particularly in the LNG, gas processing and oil
sands markets. Projects from round the world drove the upside
during the year.
Chicago Bridge & Iron is very positive about the increase
in order activity in the LNG division. Further, the company
delivered solid third-quarter performance with earnings
increasing 13.9% year over year and revenues growing 15.0%.
Our proven model does not conclusively show that Chicago
Bridge 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 of #1, 2 or 3 for this to happen. That is not
the case here as you will see below.
Positive Zacks ESP:
That is because the Most Accurate estimate stands at $0.82 while
the Zacks Consensus Estimate is higher at $0.83. That is a
difference of -1.21%.
Zacks #3 Rank (Hold):
Chicago Bridge & Iron's Zacks Rank #2 (Buy) lowers the
predictive power of ESP because the Zacks #2 Rank when combined
with a negative ESP makes surprise prediction difficult. We
caution against stocks with Zacks #4 and #5 Ranks (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 they have the right combination of elements to post
an earnings beat this quarter:
Aecom Technology Corp.
), with Earnings ESP of +1.92% and Zacks #2 Rank (Buy)
), with Earnings ESP of +8.57%and Zacks #3 Rank (Hold)
), with Earnings ESP of +50.0% and Zacks #3 Rank (Hold).
AECOM TECH CORP (ACM): Free Stock Analysis
CHICAGO BRIDGE (CBI): Free Stock Analysis
STERLING CONSTR (STRL): Free Stock Analysis
URS CORP (URS): Free Stock Analysis Report
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