Industrial gas producer and supplier Praxair Inc. (PX - Free Report) is scheduled to report third-quarter 2016 results on Oct 27, before the market opens. The Zacks Consensus Estimate for the quarter is pegged at $1.41.
Praxair’s financial performance was impressive in the last four quarters, with an average positive earnings surprise of 1.49%. Last quarter, the company’s earnings of $1.39 per share exceeded the Zacks Consensus Estimate of $1.35 by 2.96%.
Let us see how things are shaping up for Praxair prior to this earnings announcement.
Factors to Affect Q3 Results
Despite the growing application of industrial gases creating potential market for products offered by Praxair, we believe the current global economic uncertainties and the prevalent weakness in the industrial end-markets of the U.S. are restricting its growth momentum. In addition, unfavorable foreign currency movements have been adversely impacting the company’s international trade.
Narrowing down to micro issues, Praxair is exposed to stiff competition from other players in the industry. Heavy investments are required to keep up with the current demand, increasing the company’s debts and expenses. Unwarranted rise in these might prove detrimental to the company’s profitability.
We believe the above-mentioned headwinds might have adversely impacted Praxair’s results in the third quarter.
Earnings Whispers
Our proven model conclusively shows that Praxair will disappoint earnings this quarter. This 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. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises. 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 -1.42%.
Zacks Rank: Praxair carries a Zacks Rank #4 (Sell).
As it is 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:
Koopers Holdings Inc. (KOP - Free Report) , with an Earnings ESP of +18.18% and a Zacks Rank #1.
Green Plains Inc. (GPRE - Free Report) , with an Earnings ESP of +25.93% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Dow Chemical Company (DOW - Free Report) , with an Earnings ESP of +1.25% and a Zacks Rank #2.
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It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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Industrial gas producer and supplier Praxair Inc. (PX - Free Report) is scheduled to report third-quarter 2016 results on Oct 27, before the market opens. The Zacks Consensus Estimate for the quarter is pegged at $1.41.
Praxair’s financial performance was impressive in the last four quarters, with an average positive earnings surprise of 1.49%. Last quarter, the company’s earnings of $1.39 per share exceeded the Zacks Consensus Estimate of $1.35 by 2.96%.
Let us see how things are shaping up for Praxair prior to this earnings announcement.
Factors to Affect Q3 Results
Despite the growing application of industrial gases creating potential market for products offered by Praxair, we believe the current global economic uncertainties and the prevalent weakness in the industrial end-markets of the U.S. are restricting its growth momentum. In addition, unfavorable foreign currency movements have been adversely impacting the company’s international trade.
Narrowing down to micro issues, Praxair is exposed to stiff competition from other players in the industry. Heavy investments are required to keep up with the current demand, increasing the company’s debts and expenses. Unwarranted rise in these might prove detrimental to the company’s profitability.
We believe the above-mentioned headwinds might have adversely impacted Praxair’s results in the third quarter.
Earnings Whispers
Our proven model conclusively shows that Praxair will disappoint earnings this quarter. This 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. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises. 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 -1.42%.
Zacks Rank: Praxair carries a Zacks Rank #4 (Sell).
As it is 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:
Koopers Holdings Inc. (KOP - Free Report) , with an Earnings ESP of +18.18% and a Zacks Rank #1.
Green Plains Inc. (GPRE - Free Report) , with an Earnings ESP of +25.93% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Dow Chemical Company (DOW - Free Report) , with an Earnings ESP of +1.25% and a Zacks Rank #2.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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