) is set to report third quarter 2013 results before the opening
bell on Oct 17. Last quarter, Danaher posted a 2.35% positive
earnings surprise. Let's see how things are shaping up for this
Factors this Past Quarter
Danaher is affected by the poor macroeconomic conditions. The
instability in Western Europe has also proved to be a drag for
the company. Danaher's Test & Measurement Tools segment has
been affected by a weaker-than-expected product demand, leading
to decreased margin expectations in the segment. The company's
operating cash flow had decreased in the quarter driven by
increasing capital expenditures. Danaher had provided a tepid
outlook for the third quarter and forecasted earnings to be in
the range of 78 cents to 83 cents a share.
Our proven model does not conclusively show that Danaher is
likely to beat earnings this quarter. That is because a stock
needs to have both a positive
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:
That is because the Most Accurate estimate stands at 82 cents
while the Zacks Consensus Estimate is at 83 cents. That is a
difference of -1.21%.
Zacks Rank #3 (Hold):
Danaher'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. We caution against stocks with
Zacks Ranks #4 and #5 (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 that they have the right combination of elements to
post an earnings beat this quarter:
),with Earnings ESP of +6.67% and a Zacks Rank #1 (Strong
Micron Technology Inc.
),with Earnings ESP of +11.63% and a Zacks Rank #2 (Buy).
Honeywell International Inc.
), with Earnings ESP of +0.81% and a Zacks Rank #2 (Buy).
SPANSION INC (CODE): Free Stock Analysis
DANAHER CORP (DHR): Free Stock Analysis
HONEYWELL INTL (HON): Free Stock Analysis
MICRON TECH (MU): Free Stock Analysis Report
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