) is set to report third-quarter 2013 results on Oct 31 after
market closes. Last quarter it posted a 2.97% negative surprise.
Let's see how things are shaping up for this announcement.
Growth Factors this Past Quarter
Fluor Corporation posted modest top-line and bottom-line
results during the second quarter of 2013, with its earnings
increasing 3.1% year over year and revenues growing just 1.6%
year over year. During the second quarter, the company largely
benefited from a significant rise in Oil & Gas and Power
revenues. This was partially offset by declines in the company's
mining and metals business. Moreover, uncertain economic
conditions and tough competitive environment remain a matter of
concern. Fluor Corporation has a strong presence and brand name
in executing front-end engineering and design (FEED) contracts
and the engineering, procurement and construction (EPC) contracts
in large petrochemical and petroleum companies. During the third
quarter, the company largely benefited from a significant rise in
Oil & Gas and Power projects. However, the company's mining
and metals business continued to be slow during the quarter.
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
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 $1.01 while
the Zacks Consensus Estimate is higher at $1.03. That is a
difference of -1.94%.
Fluor Corporation'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 they have the right combination of elements to post
an earnings beat this quarter:
Universal Forest products Inc
), has Earnings ESP of 17.65% and Zacks Rank #1 (Strong Buy).
Boise Cascade Co
), has Earnings ESP of 5.56% and Zacks Rank #2 (Buy).
), has Earnings ESP of 2.13% and Zacks Rank #2 (Buy).
BOISE CASCADE (BCC): Free Stock Analysis
FLUOR CORP-NEW (FLR): Free Stock Analysis
RAYONIER INC (RYN): Free Stock Analysis
UNIVL FST PRODS (UFPI): Free Stock Analysis
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