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Machinery Stocks Earnings to Watch on Jul 28: FLS, PNR & More

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This is an eventful, decisive week for the season, with almost 1000 companies releasing their numbers. With macroeconomic conditions still soft, earnings growth is projected to be negative for 9 of the 16 Zacks sectors (as of Jul 22). This shows that the weakness is quite broad-based, though the energy sector still remains the biggest drag. Further, growth for the benchmark S&P 500 index is on track to be in the red for the fifth quarter in a row.

As of Jun 22, we had results from 126 S&P 500 members, of which about 70.6% have posted earnings beats and 55.6% trumped top line estimates.

On the whole, our latest data projects that earnings for S&P 500 companies are now on track to decline 3.4% from the year-ago period, on 0.5% lower revenues. This is comparable to a decline of 6.2% expected a little over a fortnight ago. This change hints toward some tell-tale signs of improvement in the overall earnings picture, which still appears bleak. (Read more: Decisive Week for the Q2 Earnings Season)

The industrial products sector is one of those sectors which are expected to chart negative earnings growth this quarter. Its earnings are on track to contract 8% in the quarter, on 5.8% lower sales compared with the last year.

Let’s have a look at how some machinery players within the sector, like Pentair plc (PNR - Free Report) , Flowserve Corp. (FLS - Free Report) , Columbus McKinnon Corporation (CMCO - Free Report) , Chart Industries Inc. (GTLS - Free Report) and Colfax Corporation , are poised ahead of their scheduled announcements tomorrow.

Pentair: Pentair operates as a diversified industrial manufacturing company in the U.S., Europe, and internationally. It caters to diverse client needs in water and other fluids, thermal management and equipment protection areas, and serves Energy, Food & Beverage, Industrial, Infrastructure and Residential & Commercial industries.

Pentair has a robust earnings surprise history, with consecutive earnings beats in the four trailing quarters with an average positive earnings surprise of 4.6%. Last quarter, it trumped estimates by 5.6%.

PENTAIR PLC Price and EPS Surprise

PENTAIR PLC Price and EPS Surprise | PENTAIR PLC Quote

Pentair continues to aggressively manage its cost structure and drive productivity to work through the near-term challenges. The company will further benefit from the ERICO acquisition and growth in residential/commercial verticals. (Read More: Pentair to Report Q2 Earnings: Can the Stock Surprise?)

The company has an Earnings ESP of +0.91% and a Zacks Rank #3 (Hold). The Zacks Consensus Estimate for the quarter is pegged at $1.10.

Flowserve: Flowserve is a leading manufacturer and aftermarket service provider of comprehensive flow control systems, globally.The company develops and manufactures precision-engineered flow control equipment, such as pumps, valves and seals, for critical service applications that require high reliability.

The Texas-based company’s earnings history is a mixed bag. Flowserve beat the Zacks Consensus Estimate in two of the trailing four quarters, while missing in the other two, with an average negative surprise of 1.1%.In the last reported quarter, the company delivered a negative earnings surprise of 7.1%.

FLOWSERVE CORP Price and EPS Surprise

FLOWSERVE CORP Price and EPS Surprise | FLOWSERVE CORP Quote

Much of Flowserve’s recent lukewarm financial performance is largely attributable to the unfavorable macroeconomic conditions. However, a booming U.S. chemical market business, largely led by ethylene expansion in North America and thriving nuclear energy markets, is expected to support the company’s results. (Read More: Flowserve Q2 Earnings: What's in Store for the Stock?)

Flowserve presently has an Earnings ESP of 0.00% and a Zacks Rank #3. The Zacks Consensus Estimate for the quarter is pegged at 61 cents.

Columbus McKinnon:This company designs, manufactures, and markets material handling products for various commercial and industrial end-user markets. The company had a choppy earnings history over the trailing four quarters, with three significant misses and one beat, for an average negative surprise of 10.1%. In the last reported quarter, the company managed to deliver a modest earnings surprise of 2.8%.

COLUMBUS MCKINN Price and EPS Surprise

COLUMBUS MCKINN Price and EPS Surprise | COLUMBUS MCKINN Quote

The company had been in a rough patch due to weak commodity prices and a stronger dollar, but things might turn around for the company as industrial production in the U.S. gains traction, and oil prices and dollar stabilize.

Columbus McKinnon presently has an Earnings ESP of 0.00% and a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for the quarter is pegged at 34 cents.

Chart Industries: This company is a leading independent global manufacturer of highly engineered equipment used in the production, storage and end use of hydrocarbon and industrial gases. It caters to the industrial gas, energy, and biomedical industries worldwide.

The company has recorded a mixed surprise history over the trailing four quarters, with two beats and two misses. The company posted an average positive surprise of 287.2% over the trailing four quarters, driven by a massive beat in the quarter before last.

CHART INDUSTRIE Price and EPS Surprise

CHART INDUSTRIE Price and EPS Surprise | CHART INDUSTRIE Quote

Chart Industries presently has an Earnings ESP of +7.69% and a Zacks Rank #4 (Sell). The Zacks Consensus Estimate for the quarter is pegged at 13 cents.

Colfax: This company is a global supplier of fluid handling products, including pumps, fluid handling systems and specialty valves. Its products serve industries like commercial marine, oil and gas, power generation, global navy and general industrial markets.

Colfax has had a mixed earnings history in recent times, with earnings beating estimates thrice and missing once in the trailing four quarters, registering a negative surprise of 1.3%. Last quarter, it beat estimates by 11.1%.

COLFAX CORP Price and EPS Surprise

COLFAX CORP Price and EPS Surprise | COLFAX CORP Quote

Colfax remains vulnerable to industrial market weakness, foreign currency translation and oil volatility. However, its accretive acquisitions and cost streamlining initiatives should propel growth for the company.

The company has an Earnings ESP of +2.56% and a Zacks Rank #3. The Zacks Consensus Estimate for the quarter is pegged at 39 cents.

Keep an eye on our full earnings articles to see how these players finally fared in quarter.

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