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Is a Beat in Store for Atmus Filtration (ATMU) in Q1 Earnings?

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Atmus Filtration Technologies Inc. (ATMU - Free Report) is scheduled to release first-quarter 2024 results on May 03, before market open.

The company’s earnings surpassed the Zacks Consensus Estimate in each of the last three quarters, the average surprise being 20.3%. In the last reported quarter, its earnings of 49 cents per share beat the Zacks Consensus Estimate of 43 cents by 14%.

Let’s see how things have shaped up for Atmus Filtration this earnings season.

Key Factors

The company’s four-pillar growth strategy, which focuses on enhancing its market presence in first-fit markets, driving profitable growth in the aftermarket, expanding into industrial filtration markets and supply-chain optimization, is likely to have benefited its first-quarter 2024 earnings. Strong demand in the company’s first-fit markets is expected to have driven its top-line performance.

ATMU’s product and technology leadership form the cornerstone for growth in its core first-fit and aftermarket segments. Also, continuous efforts to strengthen its retail presence with strategic partnerships along with robust demand for Fleetguard brand are likely to have bolstered the company’s revenues. The Zacks Consensus Estimate for the company’s revenues is pegged at $418 million, suggesting an increase of 4.5% sequentially.

Its focus on innovation, strategic positioning and pricing actions is also expected to have supported margins. The consensus estimate for the company’s adjusted earnings is pinned at 59 cents per share, increasing 20.4% sequentially.

However, weakness in the aftermarket owing to lower freight activity and continued destocking by customers are likely to have hurt its earnings. Also, sluggish economic recovery in the China market is expected to have marred ATMU’s first-quarter performance.

High investments made in capital, and research and development for expanding its technology capability are likely to have impacted ATMU’s margin performance. Also, given the company’s substantial international operations, foreign currency headwinds are likely to have dented top line.

Earnings Whispers

Our proven model predicts an earnings beat for Atmus Filtration this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here, as elaborated below.

Earnings ESP: Atmus Filtration has an Earnings ESP of +0.57% as the Most Accurate Estimate is pegged at 59 cents, which is higher than the Zacks Consensus Estimate of 58 cents per share. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Zacks Rank: Atmus Filtration presently sports a Zacks Rank of 1.

Other Stocks to Consider

Here are some companies within the broader Industrial Products sector, which according to our model, also have the right combination of elements to post an earnings beat in this reporting cycle.

Chart Industries, Inc. (GTLS - Free Report) has an Earnings ESP of +9.86% and a current Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.

The company is slated to release first-quarter 2024 results on May 3. Chart Industries’ earnings have surpassed the Zacks Consensus Estimate in three of the trailing four quarters while missing the mark in one, the average beat being 75.9%.

Clear Secure, Inc. (YOU - Free Report) has an Earnings ESP of +17.65% and a Zacks Rank of 1, at present.

The company is slated to release first-quarter results on May 8. YOU delivered a trailing four-quarter earnings surprise of 136.4%, on average.

Axon Enterprise, Inc. (AXON - Free Report) has an Earnings ESP of +5.97% and a Zacks Rank of 2, at present.

The company is scheduled to release first-quarter 2024 results on May 6. Axon’s earnings have surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 58.7%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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