Pall Corporation (PLL) is set to report first-quarter fiscal 2015 results on Nov 25. Last quarter, the company posted a positive surprise of 4.7%. Let’s see how things are shaping up for this announcement.
Factors at play
Pall Corp.’s growth prospects are being driven by its superior technology, reliable global distribution and high share in niche markets. The regular dividend increases also indicate the company’s steady cash flow generation.
The company is benefiting from its improved operational execution and cost-reduction initiatives, despite the prevailing volatility in the global economy. Pall Corp. is benefiting from strength in its LifeSciences segment, recovering economic conditions and strategic acquisitions. However, unfavorable foreign currency translation and an uncertain global economic environment remain headwinds for the company.
Earnings Whispers?
Our proven model does not conclusively show that Pall Corp. 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.
Positive Zacks ESP: The Earnings ESP, which represents the difference between the Most Accurate estimate of 82 cents and the Zacks Consensus Estimate of 80 cents, is currently pegged at +2.50%.
Zacks Rank #4: Pall Corp. holds a Zacks #4 Rank (Sell). We caution against stocks with Zacks Ranks #4 and 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions momentum.
Stocks to Consider
Here are some companies you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:
Zumiez Inc. (ZUMZ) with an Earnings ESP of +3.85% and a Zacks Rank #2 (Buy).
The Kroger Co. (KR) with an Earnings ESP of +3.28% and a Zacks Rank #2.
Campbell Soup Co. (CPB) has an Earnings ESP of +1.37% and a Zacks Rank #3.
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