Myers Industries Inc. (MYE), an international manufacturer of polymer products for industrial, agricultural, automotive, commercial, and consumer markets, is scheduled to post its third-quarter results on Oct 28, after the market closes. In the previous quarter, the company delivered a negative earnings surprise of 4.4%. Let’s see how things are shaping up for this announcement.
Factors Affecting the Quarter
Higher freight and resin costs along with subdued demand trends are likely to take the shine off the third-quarter results, adding to the company’s already falling sales and deteriorating profits.
To counter the situation, Myers Industries is making every possible effort to streamline its business portfolio through acquisitions and divestment of underperforming assets. While these strategies appear promising for the long run, we are wary of the company’s upcoming results and stock’s near-term prospect.
Earnings Whispers
Our proven model does not conclusively show that Myers Industries is likely to beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP (Expected Surprise Prediction) and a Zacks Rank of #1, 2 or 3 for this to happen. This is not the case here as you will see below.
Zacks ESP: Myers Industries currently has an Earnings ESP of 11.77%. This is because the Most Accurate estimate stands at 19 cents a share, while the Zacks Consensus Estimate is pegged at 17 cents per share.
Zacks Rank: Myers Industries’ carries a Zacks Rank #5 (Strong Sell), which lowers the predictive power of ESP.
We caution against stocks with a Zacks Rank #4 and 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
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:
The Walt Disney Company (DIS) has an Earnings ESP of +3.41% and a Zacks Rank #2 (Buy).
The New York Times Company (NYT) has an Earnings ESP of +100.00% and a Zacks Rank #2.
Dean Foods Company (DF) has an Earnings ESP of +15.39% and a Zacks Rank #3 (Hold).
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