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Praxair (PX) to Report Q2 Earnings: What's in the Cards?
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Industrial gas producer and supplier Praxair Inc. (PX - Free Report) is scheduled to report second-quarter 2016 results on Jul 28, before the market opens. The Zacks Consensus Estimate for the quarter is pegged at $1.35.
In the four trailing quarters, Praxair delivered better-than-expected results in three while posting in-line results in one. Average earnings surprise for the stock was a positive 0.75%. Last quarter, the company’s earnings of $1.28 per share exceeded the Zacks Consensus Estimate of $1.26. Let us see how things are shaping up for Praxair prior to this earnings announcement.
Factors to Affect Q2 Results
We believe that application of industrial gases has been on the rise over time. For instance, hydrogen is used in the refining industry, oxygen in healthcare, and nitrogen and carbon dioxide in oil and gas industry. Healthy demand for industrial gases as well as customers’ preference for Praxair’s world-class technology, high-quality products and gas supply services must have had a positive impact on the company’s top-line in second-quarter 2016.
In addition, Praxair followed both organic and inorganic means of business expansion in the second quarter. While it completed the acquisition of the European carbon dioxide business of Yara International ASA along with five industrial gas businesses, it also signed a long-term agreement to source by-product carbon dioxide from US Nitrogen LLC. Moreover, the company remains committed toward rewarding its shareholders with dividends and share buybacks.
However, we believe Praxair might have faced headwinds from risks arising from unfavorable foreign currency movements, stiff competition and an uncertain global economy. Over the last 60 days, the Zacks Consensus Estimate for the stock remained stable at $5.56 per share for 2016.
Earnings Whispers
Our proven model does not conclusively show that Praxair will be able to pull an earnings surprise this quarter. That is because a stock needs both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat earnings. That is not the case here as you will see below.
Zacks ESP: Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, currently stands at 0.00%.
Zacks Rank: Praxair’s Zacks Rank #3, when combined with 0.00% ESP makes surprise prediction difficult.
Note that we caution against stocks with a Zacks Rank #4 or #5 (Sell-rated stocks) going into earnings announcement, especially when the company is seeing a negative estimate revisions momentum.
Stocks to Consider
Here are some other companies you may want to consider in the chemical industry as our model shows they have the right combination of elements to post an earnings beat this quarter:
Huntsman Corporation (HUN - Free Report) , with an Earnings ESP of +7.84% and a Zacks Rank #1.
FMC Corp. (FMC - Free Report) , with an Earnings ESP of +4.48% and a Zacks Rank #2.
Ingevity Corporation (NGVT - Free Report) , with an Earnings ESP of +3.92% and a Zacks Rank #3.
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 >>
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Praxair (PX) to Report Q2 Earnings: What's in the Cards?
Industrial gas producer and supplier Praxair Inc. (PX - Free Report) is scheduled to report second-quarter 2016 results on Jul 28, before the market opens. The Zacks Consensus Estimate for the quarter is pegged at $1.35.
In the four trailing quarters, Praxair delivered better-than-expected results in three while posting in-line results in one. Average earnings surprise for the stock was a positive 0.75%. Last quarter, the company’s earnings of $1.28 per share exceeded the Zacks Consensus Estimate of $1.26. Let us see how things are shaping up for Praxair prior to this earnings announcement.
Factors to Affect Q2 Results
We believe that application of industrial gases has been on the rise over time. For instance, hydrogen is used in the refining industry, oxygen in healthcare, and nitrogen and carbon dioxide in oil and gas industry. Healthy demand for industrial gases as well as customers’ preference for Praxair’s world-class technology, high-quality products and gas supply services must have had a positive impact on the company’s top-line in second-quarter 2016.
In addition, Praxair followed both organic and inorganic means of business expansion in the second quarter. While it completed the acquisition of the European carbon dioxide business of Yara International ASA along with five industrial gas businesses, it also signed a long-term agreement to source by-product carbon dioxide from US Nitrogen LLC. Moreover, the company remains committed toward rewarding its shareholders with dividends and share buybacks.
However, we believe Praxair might have faced headwinds from risks arising from unfavorable foreign currency movements, stiff competition and an uncertain global economy. Over the last 60 days, the Zacks Consensus Estimate for the stock remained stable at $5.56 per share for 2016.
Earnings Whispers
Our proven model does not conclusively show that Praxair will be able to pull an earnings surprise this quarter. That is because a stock needs both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat earnings. That is not the case here as you will see below.
Zacks ESP: Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, currently stands at 0.00%.
Zacks Rank: Praxair’s Zacks Rank #3, when combined with 0.00% ESP makes surprise prediction difficult.
PRAXAIR INC Price and EPS Surprise
PRAXAIR INC Price and EPS Surprise | PRAXAIR INC Quote
Note that we caution against stocks with a Zacks Rank #4 or #5 (Sell-rated stocks) going into earnings announcement, especially when the company is seeing a negative estimate revisions momentum.
Stocks to Consider
Here are some other companies you may want to consider in the chemical industry as our model shows they have the right combination of elements to post an earnings beat this quarter:
Huntsman Corporation (HUN - Free Report) , with an Earnings ESP of +7.84% and a Zacks Rank #1.
FMC Corp. (FMC - Free Report) , with an Earnings ESP of +4.48% and a Zacks Rank #2.
Ingevity Corporation (NGVT - Free Report) , with an Earnings ESP of +3.92% and a Zacks Rank #3.
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 >>