Will Erickson Air-Crane (EAC) Q2 Earnings Miss Estimates? - Analyst Blog

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Erickson Air-Crane Inc. ( EAC ) is set to release its second-quarter 2014 results before the market opens on Aug 7, 2014. In the last quarter, the company had incurred a loss of 52 cents per share. Let's see how things are shaping up for this announcement.

Factors to Be Considered This Quarter

The company is a provider of aviation services to commercial and government customers. During the quarter, Erickson inked a deal with the oil and gas major, Repsol, to provide helicopter transport for an oil, gas and petroleum research project in the North Slope region. It has also secured a contract with Pluspetrol Peru Corporation S.A., a leading exploration and production company with a significant presence in Peru. The contract calls for Erickson to provide one S-64 Aircrane and related support for year-round use.

Again, Erickson intends to boost its focus in 2014 and 2015 on domestic efforts to increase its presence in major U.S. construction markets.

However, the company has not seen any estimate revisions over the past two months, and the current year earnings consensus hasn't been in a trend either. Its share price lost 29.84% so far this year, which is discouraging.

The company continues to expect 2014 earnings of 95 cents to $1.35 per share on revenues of $385.0 million to $405.0 million.

Earnings Whispers

Our proven model does not conclusively show that Erickson is likely to beat the Zacks Consensus Estimate 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. Unfortunately, this is not the case here as elaborated below. The Sell-rated stocks (#4 and 5) should never be considered going into an earnings announcement.

Zacks ESP: The Most Accurate estimate and the Zacks Consensus Estimate are poised at 9 cents. Hence, the ESP is 0.00%.

Zacks Rank: Erickson carries a Zacks Rank #3 (Hold). We caution investors against the stock going into the earnings announcement as an ESP of 0.00% combined with a Zacks Rank #3 lowers the possibility of an earnings beat.

Other Stocks to Consider

Here is one company to have the right combination of elements to post an earnings beat this quarter.

Huntington Ingalls Industries Inc. ( HII ) has an earnings ESP of +2.20% and bears a Zacks Rank #2 (Buy).

Among other defense companies, the world's largest defense operator Lockheed Martin Corp. ( LMT ) reported a forecast-beating 4.5% rise in second-quarter 2014 earnings per share, backed by strong operational performance. The company raised its 2014 earnings guidance, reflecting lower pension costs and an improved outlook for its space unit. Lockheed also carries a bullish Zacks Rank #2 (Buy).

Again, The Boeing Co. ( BA ) delivered upbeat second-quarter 2014 results on the back of robust deliveries and soaring profits (up 45% year over year). Moreover, Boeing raised its full-year 2014 earnings outlook. The company holds a Zacks Rank #2 (Buy).

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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.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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