Pinnacle Foods Inc.PF , the manufacturer and distributor of branded food products, is slated to report third-quarter 2016 results on Oct 27. The big question facing investors is, whether the company will be able to deliver a positive earnings surprise in the quarter to be reported. In the trailing four quarters, it outperformed the Zacks Consensus Estimate by an average of 2.2%. Let's see how things are shaping up for this announcement.
PINNACLE FOODS Price and EPS Surprise
Zacks Model Shows Unlikely Earnings Beat
Our proven model does not conclusively show that Pinnacle Foods is likely to beat earnings estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. Pinnacle Foods has an Earnings ESP of 0.00% as the Most Accurate estimate and the Zacks Consensus Estimate both stand at 52 cents. The company carries a Zacks Rank #3 (Hold), which increases the predictive power of ESP. However, its ESP of 0.00% makes surprise prediction difficult.
Factors Influencing this Quarter
Pinnacle Foods actively manages its diverse portfolio of iconic food brands that enjoy strong household penetration in the U.S. Also, the company has undertaken several initiatives to reduce costs, coupled with strategic acquisitions to further expand its footprint and boost long-term growth. Further, Pinnacle Foods has an operational excellence program in place, designed to generate annual productivity savings across the supply chain.
Despite these growth strategies, the company remains apprehensive of incurring higher introductory costs related to product innovation. Moreover, increased consumer marketing investment and currency headwinds are likely to hurt its profits.
Nonetheless, estimates have largely remained unchanged ahead of Pinnacle Foods' third-quarter 2016 earnings release.
Stocks Poised to Beat Earnings Estimates
Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Big 5 Sporting Goods Corp. BGFV has an Earnings ESP of +3.33% and a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
L Brands, Inc. LB has an Earnings ESP of +2.22% and a Zacks Rank #3.
Dollar Tree, Inc. DLTR has an Earnings ESP of +1.28% and a Zacks Rank #3.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.