Flowserve Corp . ( FLS ) is expected to
report its fourthquarter 2013 results on Feb 21. Last quarter it
posted a +1.95% surprise. Let's see how things are shaping up for
Why a Likely Positive Surprise?
Our proven model shows that Flowserve is likely to beat earnings
because it has the right combination of two key ingredients.
Positive Zacks ESP: Earnings Surprise
Prediction or ESP (Read: Zacks Earnings ESP: A Better Method ), which
represents the difference between the Most Accurate estimate and
the Zacks Consensus Estimate, stands at +0.71%. This is very
meaningful and a leading indicator of a likely positive earnings
surprise for shares.
Zacks #3 Rank (Neutral): Investors shouldnote
that stocks with Zacks Ranks #1, #2 and #3 have a significantly
higher chance of beating earnings. The sell rated stocks (#4 and
#5) should never be considered going into an earnings
The combination of Flowserve's Zacks Rank #3 (Hold) and +0.71%
ESP makes us very confident about a positive earnings beat on Feb
21 st .
What is Driving the Better-Than-Expected
Strong backlog exceeding $700 million, strong bookings
increasing in the high single-digits year over year and focused
end-user aftermarket strategies are expected to lead to a positive
earnings surprise in the upcoming quarter.
The positive trend is seen in the trailing four-quarter average
surprise of 1.08%, which was greatly helped by the 1.95% surprise
in the last reported quarter. This was possible because bookings by
end markets such as the oil and gas, and chemical industries, along
with modest growth in the general industries and water business
reported strong growth year over year.
Other Stocks to Consider
Flowserve is not the only firm looking up this earnings season.
We also see likely earnings beats coming from these 3 industry
Altra Holdings ( AIMC ) with Earnings
ESP of +4.76% and Zacks #1 Rank (Strong Buy).
Graco Inc . ( GGG ) with Earnings ESP
of +1.39% and Zacks #2 Rank (Buy).
Idex Corp .( IEX ) with Earnings ESP
of +1.41% and Zacks#2Rank (Buy).ALTRA HOLDINGS (AIMC): Free Stock Analysis
ReportFLOWSERVE CORP (FLS): Free Stock Analysis
ReportGRACO INC (GGG): Free Stock Analysis ReportIDEX CORP (IEX): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment