Foster Wheeler AG
) is set to report its fourth quarter 2012 results on Mar 1,
2013. Last quarter, it posted a +24.4% surprise. Let's see how
things are shaping up for this announcement.
Growth Factors This Past Quarter
Foster Wheeler reported a robust third quarter compared to the
average quarter of 2011. The company reported a 40% increase in
adjusted net income and 57% surge in adjusted earnings per share.
The strong performance was primarily driven by a record level of
scope new orders in the Global E&C Group.
This segment received three big orders, which were booked and
announced in the third quarter itself. Further, the Global
E&C Group reported a 31% sequential increase in backlog.
Our proven model does not conclusively show that Foster
Wheeler 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 $0.45 while
the Zacks Consensus Estimate is lower at $0.47. That is a
difference of -4.26%.
Zacks #3 Rank (Hold):
Foster's Zacks Rank #3 (Hold) lowers the predictive power of ESP
because the Zacks #3 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 TECH CORP (ACM): Free Stock Analysis
FLIR SYSTEMS (FLIR): Free Stock Analysis
FOSTER WHELR AG (FWLT): Free Stock Analysis
QUANTA SERVICES (PWR): Free Stock Analysis
To read this article on Zacks.com click here.
Aecom Technology Corp
) with Earnings ESP of 1.92% and Zacks #2 Rank (Buy)
FLIR Systems Inc
) with Earnings ESP of 5.88% and Zacks #2 Rank (Buy)
Quanta Services Inc
) with Earnings ESP of 3.33% and Zacks #3 Rank (Hold)