Parker Hannifin Corporation
) is set to report second-quarter 2014 results before the opening
bell on Jan 22. In the last quarter, Parker posted a +13.6%
However, due to the weakness in industrial North American
market 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 before this announcement.
Factors to Influence This Quarter
During the second quarter, uncertain macro economic conditions
and the currency headwinds continued to be a drag on the
company's profitability. Nevertheless, strong cash
flow-generating capability and a strong balance sheet are its
strengths. In addition, the company gives dividend hikes,
reflecting its commitment to return value to shareholders.
Our proven model does not conclusively show that Parker
Hannifin 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.
: The Most Accurate estimate stands at $1.16 while the Zacks
Consensus Estimate is at $1.22. That is a difference of
Zacks Rank #2
: Parker's Zacks Rank #2 (Buy) indicates an outperformance in the
to-be reported quarter. However, Zacks Rank #2 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
Other Stocks to Consider
Here are some other companies you may want to consider as our
model shows that these have the right combination of elements to
post an earnings beat this quarter:
Altra Holdings Inc
) with earnings ESP of +8.11% and Zacks Rank #2.
), with earnings ESP of +4.00% and a Zacks Rank #2.
), with earnings ESP of +23.5% and a Zacks Rank #2.
ALTRA HOLDINGS (AIMC): Free Stock Analysis
EMBRAER AIR-ADR (ERJ): Free Stock Analysis
GORMAN RUPP CO (GRC): Free Stock Analysis
PARKER HANNIFIN (PH): Free Stock Analysis
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