We expect engineering construction company
Chicago Bridge & Iron
) to beat expectations when it reports first quarter 2013 results
on May 2.
Why a Likely Positive Surprise?
Our proven model shows that Chicago Bridge is likely to beat
earnings because it has the right combination of two key
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, is at 1.33%. This is
very meaningful and a leading indicator of a likely positive
earnings surprise for the stock.
Zacks #3 Rank (Neutral):
We note that 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 never be considered going into an
The combination of Chicago Bridge's Zacks Rank # 2 (Buy) and
+1.33% ESP makes us very confident in looking for a positive
earnings beat on May 2.
What is Driving the Better Than Expected Earnings?
Strong order activity coupled with rising demand for energy
infrastructure, especially in the LNG, gas processing and oil
sands markets across the world 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 1.14%, which was greatly helped by the 9.6%
surprise in the last-reported quarter. This was possible because
Chicago Bridge had a robust quarter in terms of backlogs and
orders. In addition, revenue growth across three of the company's
operating segments along with strong license sales also
Other Stocks to Consider
Chicago Bridge is not the only company looking up this
earnings season. 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:
CHICAGO BRIDGE (CBI): Free Stock Analysis
ITT CORP (ITT): Free Stock Analysis Report
KBR INC (KBR): Free Stock Analysis Report
ORION MARINE GP (ORN): Free Stock Analysis
To read this article on Zacks.com click here.
Orion Marine Group Inc.
) with an Earnings ESP of +25.00% and Zacks #1 Rank (Strong
) with an Earnings ESP of +4.65% and Zacks #2 Rank (Buy)
) with an Earnings ESP of +1.79% and Zacks #3 Rank (Hold)