We expect aerospace and defense company
) to beat expectations when it reports fourth quarter fiscal 2013
results on May 2.
ALLIANT TECHSYS (ATK): Free Stock Analysis
SPIRIT AEROSYS (SPR): Free Stock Analysis
TRANSDIGM GROUP (TDG): Free Stock Analysis
EXELIS INC (XLS): Free Stock Analysis Report
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Why a Likely Positive Surprise?
Our proven model indicates that Alliant Techsystems is likely to
beat earnings because it has the right combination of two key
Positive Zacks ESP
: Expected 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, is at +9.14%. This is
a leading indicator of a likely positive earnings surprise for
Zacks Rank #3 (Hold)
: The stocks with Zacks Ranks of #1, #2 and #3 have a
significantly higher chance of beating earnings. The Sell rated
stocks (#4 and #5) should be avoided going into an earnings
The combination of Alliant Techsystems's Zacks Rank #3 (Hold) and
+9.14% ESP makes us confident of an earnings beat on May 2.
What is Driving Better-than-Expected Earnings?
Alliant Techsystems reported positive earnings surprises in the
last eight quarters. We expect the trend to continue in the
to-be-reported quarter as well. The results would be driven by
ATK's solid performance in its core markets and better management
of its expenses.
In addition, the diverse revenue stream of the company, its
competitiveness edge and operational efficiency will further
strengthen its performance. This will enable ATK to meet its
guidance set earlier.
Other Stocks to Consider
Other companies related to the aerospace and defense industry
worth considering on the basis of our model, which shows that
they have the right combination of elements to post an earnings
beat this quarter, include the following:
) has earnings ESP of +7.69% and carries a Zacks Rank #3 (Hold).
Spirit AeroSystems Holdings Inc.
) has earnings ESP of +4.26% and carries a Zacks Rank #3 (Hold).
TransDigm Group Incorporated
) has earnings ESP of +3.05% and carries a Zacks Rank #3