Will Praxair (PX) Post Upbeat Results This Quarter? - Analyst Blog

Industrial gas producer and supplier, Praxair Inc. PX is slated to report its first-quarter 2014 results before the market opens on Apr 23. In the last-reported quarter, the company delivered in-line results and projected earnings per share to be within the $1.48−$1.53 range.

Let us see how things are shaping up for first-quarter 2014 earnings release and whether Praxair will be able to post an upbeat earnings result this quarter.

Factors to Influence Q1 Results

Long-term growth prospects are bright for Praxair due to its world class technology, high quality products and rapidly growing gas supply services worldwide. Its products are being increasingly used for various purposes across diverse industries, such as, hydrogen for refining; oxygen for healthcare; and nitrogen and carbon dioxide for oil and gas production.

For 2014, the company anticipates a healthy operating environment, especially in the Energy, Manufacturing and Materials industries of North America. Growth in Brazil, northern Europe and Russia are expected to be positive while stability in volumes is expected in southern Europe. Project start-ups are expected in China, India and Korea.

However, foreign currency translation is anticipated to adversely impact top-line results. In addition to these, risks arising from increasing debt levels will raise financial expenses and hurt profitability. Furthermore, adverse weather conditions in the United States in the initial months of 2014 impacted industrial activities and hence influenced demand for industrial gases.   

Earnings Whispers?

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

Zacks ESP: Praxair has an ESP of -1.33% for first-quarter 2014, which indicates the difference between the Most Accurate estimate of $1.49 and the Zacks Consensus Estimate of $1.51.

Zacks Rank: Praxair carries a Zacks Rank #3 (Hold), which together with a negative ESP makes surprise prediction difficult.

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:  

Huntsman Corporation HUN, with Earnings ESP of +2.50% and a Zacks Rank #2 (Buy).

Celanese Corporation CE, with Earnings ESP of +2.48% and a Zacks Rank #3.

The Dow Chemical Company DOW, with Earnings ESP of +1.43% and a Zacks Rank #3.