We expect engineering, procurement and construction service
Chicago Bridge & Iron
) to beat expectations when it reports first-quarter 2014 results
on Apr 23, 2014.
Why a Likely Positive Surprise?
Our proven model shows that CBI is likely to beat earnings
because it has the right combination of two key ingredients.
Positive Zacks ESP:
Earnings Surprise Prediction or
, which represents the difference between the Most Accurate
estimate and the Zacks Consensus Estimate, is at +5.36%. This is
very meaningful and a leading indicator of a likely positive
earnings surprise for shares.
Zacks Rank #3 (Hold):
Note that stocks with Zacks Ranks #1, 2 and 3 have a
significantly higher chance of beating earnings. Sell-rated
stocks (#4 and #5) should never be considered going into an
The combination of CBI's Zacks Rank #3 and +5.36% ESP makes us
very confident in looking for a positive earnings beat this
What is Driving the Better Than Expected Earnings?
CBI's diligent operational execution, focus on safety and
unique business model are the key drivers behind the its growth.
CBI is benefiting from rising demand worldwide for energy
infrastructure, especially in the LNG, gas processing and oil
sands markets. Exiting the year, the company had a strong backlog
driven by significant new order wins. CBI is very positive about
increasing orders in the LNG division, especially for LNG/low
temperature storage systems (petrochemicals).
The positive trend is seen in the trailing four-quarter
average surprise of 9.03%, which was greatly helped by the 2.6%
surprise in the last-reported quarter. This was possible because
CBI reported healthy revenue growth across all the three legacy
Other Stocks to Consider
CBI is not the only firm looking up this earnings season. We
also see likely earnings beats coming from these 3 industry
NRG Yield, Inc
), Earnings ESP of +43.75% and Zacks Rank #1 (Strong Buy).
Atlantic Power Corporation
), Earnings ESP of +80.95% and Zacks Rank #2 (Buy).
Chesapeake Utilities Corporation
), Earnings ESP of +0.63% and Zacks Rank #2.
ATLANTIC PWR CP (AT): Free Stock Analysis
CHICAGO BRIDGE (CBI): Free Stock Analysis
CHESAPEAKE UTIL (CPK): Free Stock Analysis
NRG YIELD INC-A (NYLD): Free Stock Analysis
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