) is set to report third quarter 2013 results on Nov 5. Last
quarter it posted a 6.2% negative surprise. Let's see how things
are shaping up for this announcement.
Growth Factors this Past Quarter
During the third quarter, URS Corp. received a couple of
contracts and contract extensions. Most recently, the company
received two indefinite delivery/indefinite quantity,
multiple-award pillar contracts by the Space and Naval Warfare
Systems Center Atlantic. This apart, the company announced some
Capital Allocation priorities that include dividend payments and
share repurchases, which are to be funded by free cash flow. This
move to return cash to its shareholders and reduce debt is in
line with URS' long-term opportunities to maintain its investment
grade credit rating.
Our proven model does not conclusively show that URS Corp. 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 $1.19 while
the Zacks Consensus Estimate is higher at $1.20. That is a
difference of -0.83%.
Zacks Rank #3 (Hold):
URS Corp's Zacks Rank #3 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 of #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:
), Earnings ESP of +6.12% and Zacks Rank #1 (Strong Buy)
DST Systems Inc
), Earnings ESP of +1.54% and Zacks Rank #1 (Strong
), Earnings ESP of +0.95%and Zacks Rank #2 (Buy)
DST SYSTEMS (DST): Free Stock Analysis Report
FLOWSERVE CORP (FLS): Free Stock Analysis
URS CORP (URS): Free Stock Analysis Report
XYLEM INC (XYL): Free Stock Analysis Report
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