) is set to report first-quarter 2014 results after the markets
close on May 13. The company delivered a positive surprise of 36.8%
in the last quarter. Let's see how things are shaping up for this
Factors to Influence This Quarter
During the first quarter, uncertain macro economic conditions
and currency headwinds continued to be a drag. In addition, URS was
facing delays in procurement decisions and reduction in anticipated
spending in the defense sector.
With the passing of President Obama's $1.1 trillion Omnibus
spending measure in Jan 2014, the budgetary woes ebbed and the U.S.
Department of Defense resumed efforts to strengthen its artillery.
As a result of the resumptions, the company received a couple of
The bill allows Pentagon to utilize as much as $93 billion for
buying weapons and another $63 billion for advancing research and
development in the sector. The company's Oil & Gas division
continues to perform well.
Our proven model does not conclusively show that URS is likely
to beat earnings this quarter. That is because a stock needs to
have both a positive
and a Zacks Rank #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 $0.65 while
the Zacks Consensus Estimate is higher at $0.67. This translates
into a difference of -2.99%.
Zacks Rank #4 (Sell):
URS Corporations' Zacks Rank reduces 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 witnessing 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:
NRG Yield, Inc
) with Earnings ESP of +40.00% and Zacks #2 Rank (Buy).
) with Earnings ESP of +1.39% and Zacks #2 Rank.
) with Earnings ESP of +1.79% and Zacks #2 Rank.
Want the latest recommendations from Zacks Investment Research?
Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report
EMBRAER AIR-ADR (ERJ): Free Stock Analysis
NRG YIELD INC-A (NYLD): Free Stock Analysis
URS CORP (URS): Free Stock Analysis Report
VECTREN CORP (VVC): Free Stock Analysis Report
To read this article on Zacks.com click here.