Looking Ahead to Foster Wheeler 4Q - Analyst Blog
February 27 2013 - 12:00PM
Zacks
Foster Wheeler AG (FWLT) is set to report its
fourth quarter 2012 results on Mar 1, 2013. Last quarter, it posted
a +24.4% surprise. Let’s see how things are shaping up for this
announcement.
Growth Factors This Past Quarter
Foster Wheeler reported a robust third quarter compared to the
average quarter of 2011. The company reported a 40% increase in
adjusted net income and 57% surge in adjusted earnings per share.
The strong performance was primarily driven by a record level of
scope new orders in the Global E&C Group.
This segment received three big orders, which were booked and
announced in the third quarter itself. Further, the Global E&C
Group reported a 31% sequential increase in backlog.
Earnings Whispers?
Our proven model does not conclusively show that Foster Wheeler
is likely to beat earnings this quarter. That is because a stock
needs to have both a positive Earnings ESP (Read: Zacks Earnings
ESP: A Better Method) and a Zacks Rank of #1, 2 or 3 for this to
happen. That is not the case here as you will see below.
Positive Zacks ESP: That is because the
Most Accurate estimate stands at $0.45 while the Zacks Consensus
Estimate is lower at $0.47. That is a difference of -4.26%.
Zacks #3 Rank (Hold): Foster’s Zacks Rank #3
(Hold) lowers the predictive power of ESP because the Zacks #3 Rank
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 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:
- Aecom Technology Corp. (ACM) with Earnings ESP
of 1.92% and Zacks #2 Rank (Buy)
- FLIR Systems Inc. (FLIR) with Earnings ESP of
5.88% and Zacks #2 Rank (Buy)
- Quanta Services Inc. (PWR) with Earnings ESP
of 3.33% and Zacks #3 Rank (Hold)
AECOM TECH CORP (ACM): Free Stock Analysis Report
FLIR SYSTEMS (FLIR): Free Stock Analysis Report
FOSTER WHELR AG (FWLT): Free Stock Analysis Report
QUANTA SERVICES (PWR): Free Stock Analysis Report
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