Erickson Air-Crane Inc.
) is set to release its second-quarter 2014 results before the
market opens on Aug 7, 2014. In the last quarter, the company had
incurred a loss of 52 cents per share. Let's see how things are
shaping up for this announcement.
Factors to Be Considered This Quarter
The company is a provider of aviation services to commercial and
government customers. During the quarter, Erickson inked a deal
with the oil and gas major, Repsol, to provide helicopter transport
for an oil, gas and petroleum research project in the North Slope
region. It has also secured a contract with Pluspetrol Peru
Corporation S.A., a leading exploration and production company with
a significant presence in Peru. The contract calls for Erickson to
provide one S-64 Aircrane and related support for year-round use.
Again, Erickson intends to boost its focus in 2014 and 2015 on
domestic efforts to increase its presence in major U.S.
However, the company has not seen any estimate revisions over the
past two months, and the current year earnings consensus hasn't
been in a trend either. Its share price lost 29.84% so far this
year, which is discouraging.
The company continues to expect 2014 earnings of 95 cents to $1.35
per share on revenues of $385.0 million to $405.0 million.
Our proven model does not conclusively show that Erickson is likely
to beat the Zacks Consensus Estimate this quarter. This is because
a stock needs to have both a positive
and a Zacks Rank #1, #2 or #3 for this to happen. Unfortunately,
this is not the case here as elaborated below. The Sell-rated
stocks (#4 and 5) should never be considered going into an earnings
The Most Accurate estimate and the Zacks Consensus Estimate are
poised at 9 cents. Hence, the ESP is 0.00%.
Erickson carries a Zacks Rank #3 (Hold). We caution investors
against the stock going into the earnings announcement as an ESP of
0.00% combined with a Zacks Rank #3 lowers the possibility of an
Other Stocks to Consider
Here is one company to have the right combination of elements to
post an earnings beat this quarter.
Huntington Ingalls Industries Inc. (
) has an earnings ESP of +2.20% and bears a Zacks Rank #2 (Buy).
Among other defense companies, the world's largest defense operator
Lockheed Martin Corp. (
) reported a forecast-beating 4.5% rise in second-quarter 2014
earnings per share, backed by strong operational performance. The
company raised its 2014 earnings guidance, reflecting lower pension
costs and an improved outlook for its space unit. Lockheed also
carries a bullish Zacks Rank #2 (Buy).
Again, The Boeing Co. (
) delivered upbeat second-quarter 2014 results on the back of
robust deliveries and soaring profits (up 45% year over year).
Moreover, Boeing raised its full-year 2014 earnings outlook. The
company holds a Zacks Rank #2 (Buy).
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