) is set to report second quarter 2013 results on Aug 1. Last
quarter it posted a 6.3% positive surprise. Let's see how things
are shaping up for this announcement.
Fluor Corporation is benefiting from the surge in shale gas
revolution in North America. It is generating promising
opportunities for Liquefied Natural Gas (LNG) and ethylene
projects. Fluor is benefiting from this potential in LNG market
and has been receiving steady inflow of orders from the world's
largest refineries and oil & gas facilities. The company's
order pipeline primarily comprises front-end engineering and
design (FEED) analysis of key projects. Recently, the company has
procured a FEED contract for Sasol's Lake Charles Chemical
Complex situated in Louisiana. This facility, once completed,
will be a world-class ethane cracker and associated derivative
Our proven model does not conclusively show that Fluor
Corporation 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
Read: Zacks Earnings ESP: A Better Method
): That is because the Most Accurate estimate stands at
$1.00 while the Zacks Consensus Estimate is lower at $1.01. That
is a difference of -0.99%.
Zacks Rank #4 (Sell):
Fluor Corporation's Zacks Rank #4 (Sell) lowers the predictive
power of ESP because the Zacks Rank #4 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:
Barnes group Inc
) - Earnings ESP of +1.92% and Zacks Rank #2 (Buy).
Gardner Denver Inc
) - Earnings ESP of +3.18% and Zacks Rank #2 (Buy)
) - Earnings ESP of +1.37% and Zacks Rank #2 (Buy)
BARNES GRP (B): Free Stock Analysis Report
FLUOR CORP-NEW (FLR): Free Stock Analysis
GARDNER DENVER (GDI): Free Stock Analysis
IDEX CORP (IEX): Free Stock Analysis Report
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