) is set to report its second quarter 2013 results on January 18,
2013. The company posted a -9.25% surprise in the last quarter.
Let's see how things are shaping up for this
Growth Factors This Past Quarter
Parker was primarily affected by major cancellations and
rescheduling of orders in the prior quarter. The industrial
business, which makes up around three-quarters of its revenue
The decline was attributable to recessionary conditions in
Europe, moderating growth in Asia, negative currency translations
and flat organic sales. In addition, orders also declined. The
five acquisitions completed in the first quarter had a positive
impact on quarterly sales.
The company expects the sluggish trends to continue through
the second quarter of fiscal 2013 and has therefore lowered its
fiscal 2013 guidance. Earnings are now expected to be in the
range of $6.15 to $6.75 per diluted share, down from the prior
guidance of $7.10 to $7.90.
Our proven model does not conclusively show that Parker is
likely to beat earnings this quarter. That is because a stock
needs to have both a positive Earnings ESP and a Zacks Rank of
#1, #2 or #3 for this to happen. That is not the case here as you
will see below.
Negative Zacks ESP:
The Most Accurate estimate stands at $1.07 while the Zacks
Consensus Estimate is higher at $1.13. That is a difference of
Zacks Rank #3 (Hold):
Parker's Zacks Rank #3 (Hold) lowers the predictive power
of ESP because the Zacks Rank #3 when combined with a negative
ESP makes surprise prediction difficult.
Other Stocks to Consider
The following is one of the company's peers you may want to
consider as our model shows that it has the right combination of
elements to post an earnings beat this quarter:
ALTRA HOLDINGS (AIMC): Free Stock Analysis
PARKER HANNIFIN (PH): Free Stock Analysis
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Altra Holdings Inc
) -- Earnings ESP of 4.0% and Zacks #1 Rank (Strong Buy)