) is set to report first quarter 2014 results before the opening
bell on Oct 18. Last quarter, Parker posted an 8.72% negative
earnings surprise. Given, the continued weakness in international
markets and the uncertain economic environment, we are skeptical
about its chances of an earnings beat in this quarter. Let's see
how things are shaping up for this announcement.
Factors this Past Quarter
Parker was primarily affected by major cancellations and
rescheduling of orders in the past quarter. Earnings during the
quarter were also impacted by lower volumes and
greater-than-expected inventory, acquisition, integration and
related expenses. Further, the company witnessed declining
revenues in North America Industrial sales. The recessionary
condition in Europe, negative currency translations and flat
organic sales in some segments were headwinds for the
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
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 $1.46 while
the Zacks Consensus Estimate is at $1.47. 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.
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
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
Clayton Williams Energy, Inc. (
with Earnings ESP of +43.75% and a Zacks Rank #2 (Buy).
Carrizo Oil & Gas Inc. (
, with Earnings ESP of +1.35% and a Zacks Rank #2 (Buy).
SPANSION INC (CODE): Free Stock Analysis
CARRIZO OIL&GAS (CRZO): Free Stock Analysis
WILLIAMS(C)ENGY (CWEI): Free Stock Analysis
PARKER HANNIFIN (PH): Free Stock Analysis
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