Will Pall Corporation (PLL) Miss Again This Earnings Season?

Zacks

Pall Corporation (PLL), a leading supplier of fine filters, is set to report fourth-quarter and full-year 2014 results on Aug 28, before the opening bell. Last quarter, it posted a negative surprise of 2.4%. Let us see how things are shaping up for this announcement.

Factors Influencing This Quarter

Pall Corporation benefits from its superior technology that enables it to supply high-quality products. Moreover, the company is focused on driving growth through strategic acquisitions. However, the company’s business stands at risk from the prevalent economic volatility across the globe. Notably, Pall’s Chinese life science business is likely to be negatively impacted by the slowdown in the region, which is delaying the approval processes. The ongoing Russia-Ukraine crisis can also weigh on the company’s financials in the quarter.

Earnings Whispers?

Our proven model does not conclusively show that Pall Corporation is likely to beat earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank of #1, 2 or 3 for this to happen. That is not the case here as you will see below.

Zacks ESP: Earnings ESP for Pall Corporation is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at $1.06.

Zacks Rank: Pall Corporation’s Zacks Rank #4 (Sell) reduces the predictive power of ESP.

We caution against stocks with Zacks Rank #4 and 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is witnessing 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:

Century Aluminum Co. (CENX), with Earnings ESP of +4.76% and a Zacks Rank #1 (Strong Buy).

Great Southern Bancorp Inc. (GSBC), with Earnings ESP of +1.82% and a Zacks Rank #1.

Abercrombie & Fitch Co.(ANF), with Earnings ESP of +10.00% and a Zacks Rank #2 (Buy).

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