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Raven (RAVN) Q3 Earnings: What Lies Ahead for the Stock?
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Industrial goods manufacturer Raven Industries, Inc. is scheduled to report third-quarter fiscal 2018 results after the closing bell on Nov 20, 2017. Last quarter, the company delivered a positive earnings surprise of 4.6%. Raven beat earnings estimates twice in a row in the trailing four quarters, with a positive earnings surprise of 15.4%.
Let’s see how things are shaping up for this announcement.
Key Factors to Consider
Raven anticipates exceeding prior-year sales and adjusted operating income in fiscal 2018. In applied technology, the company is increasing market share through technological advancements. Through sustained funding of key R&D projects over the last few years, it introduced two significant new products — Hawkeye nozzle control system and next-generation rate control system. These products are getting favorable customer feedback, generating strong demand and are likely to translate in to higher revenues in the to-be-reported quarter.
The acquisition of Colorado Lining International, Inc. has further augmented the company’s geomembrane business through extended service and product offerings. These include the addition of new product designs and installation service components to Raven’s portfolio. The transaction will enable Raven Engineered Films to transform into a vertically-integrated, full-service solutions provider for the geomembrane sector. The acquisition will also help Raven to increase its physical presence by operating facilities in four states, namely South Dakota, Colorado, California and Texas, thereby optimizing its resources and expanding customer services and logistics.
Earnings Whispers
Our proven model does not conclusively show that Raven is likely to beat earnings this quarter as it does not possess the key components. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is not the case here as you will see below:
Zacks ESP: Earnings ESP, which represents the difference between the Most Accurate estimate and Zacks Consensus Estimate, is -6.25%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Raven has a Zacks Rank #3. While this increases the predictive power of ESP, we need to have a positive ESP to be confident about an earnings surprise.
Note that we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated) going into the earnings announcement, especially when the company is seeing a negative estimate revisions momentum.
Stocks to Consider
Here are some companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this quarter:
The J. M. Smucker Company (SJM - Free Report) has an Earnings ESP of +0.62% and a Zacks Rank #3.
Ollie's Bargain Outlet Holdings, Inc. (OLLI - Free Report) has an Earnings ESP of +0.69% and a Zacks Rank #3.
Zacks’ Best Private Investment Ideas
While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public.
Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors.
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Raven (RAVN) Q3 Earnings: What Lies Ahead for the Stock?
Industrial goods manufacturer Raven Industries, Inc. is scheduled to report third-quarter fiscal 2018 results after the closing bell on Nov 20, 2017. Last quarter, the company delivered a positive earnings surprise of 4.6%. Raven beat earnings estimates twice in a row in the trailing four quarters, with a positive earnings surprise of 15.4%.
Let’s see how things are shaping up for this announcement.
Key Factors to Consider
Raven anticipates exceeding prior-year sales and adjusted operating income in fiscal 2018. In applied technology, the company is increasing market share through technological advancements. Through sustained funding of key R&D projects over the last few years, it introduced two significant new products — Hawkeye nozzle control system and next-generation rate control system. These products are getting favorable customer feedback, generating strong demand and are likely to translate in to higher revenues in the to-be-reported quarter.
The acquisition of Colorado Lining International, Inc. has further augmented the company’s geomembrane business through extended service and product offerings. These include the addition of new product designs and installation service components to Raven’s portfolio. The transaction will enable Raven Engineered Films to transform into a vertically-integrated, full-service solutions provider for the geomembrane sector. The acquisition will also help Raven to increase its physical presence by operating facilities in four states, namely South Dakota, Colorado, California and Texas, thereby optimizing its resources and expanding customer services and logistics.
Earnings Whispers
Our proven model does not conclusively show that Raven is likely to beat earnings this quarter as it does not possess the key components. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is not the case here as you will see below:
Zacks ESP: Earnings ESP, which represents the difference between the Most Accurate estimate and Zacks Consensus Estimate, is -6.25%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Raven Industries, Inc. Price and EPS Surprise
Raven Industries, Inc. Price and EPS Surprise | Raven Industries, Inc. Quote
Zacks Rank: Raven has a Zacks Rank #3. While this increases the predictive power of ESP, we need to have a positive ESP to be confident about an earnings surprise.
Note that we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated) going into the earnings announcement, especially when the company is seeing a negative estimate revisions momentum.
Stocks to Consider
Here are some companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this quarter:
Micron Technology Inc. (MU - Free Report) has an Earnings ESP of +2.28% and sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The J. M. Smucker Company (SJM - Free Report) has an Earnings ESP of +0.62% and a Zacks Rank #3.
Ollie's Bargain Outlet Holdings, Inc. (OLLI - Free Report) has an Earnings ESP of +0.69% and a Zacks Rank #3.
Zacks’ Best Private Investment Ideas
While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public.
Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors.
Click here for Zacks' private trades >>