Will Myers Industries (MYE) Miss Earnings this Quarter?

Myers Industries Inc. MYE, an international manufacturer of polymer products for industrial, agricultural, automotive, commercial, and consumer markets, is slated to post its second-quarter results on Jul 24, 2014. In the previous quarter, the company delivered a negative earnings surprise of 27.3%. Let's see how things are shaping up for this announcement.

Factors Influencing the Quarter

Of late the company has been facing challenges to stabilize its falling sales and deteriorating profits. To counter the situation, Myers Industries is trying hard to streamline its business portfolio through acquisitions and divestment of underperforming assets. Although these strategies appear promising in the long-run, we remain cautious about the stock's near-term prospects. Keeping this in view, we are not very optimistic about the company's upcoming results.

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 -8.00%. This is because the Most Accurate estimate stands at 23 cents a share, while the Zacks Consensus Estimate is pegged at 25 cents per share.

Zacks Rank #4 (Sell): Myers Industries' Zacks Rank #4 (Sell) when combined with a negative ESP makes surprise prediction difficult. 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:

Avis Budget Group, Inc. CAR, Earnings ESP of +3.18% and a Zacks Rank #1 (Strong Buy).

Colgate-Palmolive Co. CL, Earnings ESP of +1.37% and a Zacks Rank #2 (Buy).

Clorox Company CLX, Earnings ESP of +1.49% and a Zacks Rank #3 (Hold).