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Industrial Stocks' Oct 26 Earnings Preview: IR, AVY & More

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The prevalent uncertainties in the global arena have been influencing the industrial stocks over the last few quarters, though the impact seems to be subsiding lately. Weak commodity prices and low demand in the energy sector are major concerns. Also, weak economic conditions in some developed and developing nations, the U.K’s decision to exit the European Union, and unfavorable foreign currency movements have influenced international trades.

Below we briefly discuss Industrial sectors’ earnings trend so far in the third-quarter 2016.

Per the latest Earnings Preview report, roughly 21.7% of Industrial stocks that reported their results as of Oct 21 recorded a 0.5% fall in earnings and 0.8% growth in revenue. Considering the results of all Industrial stocks in the S&P 500 Group, earnings for the sector are predicted to increase 3.7%, while revenue will decline 0.3%.

What’s in Store for 4 Industrial Stocks, IR, AVY, FBHS, AGCO for Third-Quarter 2016?

Below we discuss briefly the expectations from the four industrial stocks scheduled to report their numbers tomorrow:

Ingersoll-Rand Plc (IR - Free Report) : The machinery company is slated to release its results before the market opens. The company recorded better-than-expected results in the four trailing quarters, with an average positive earnings surprise of 11.67%.

INGERSOLL RAND Price and EPS Surprise

 

INGERSOLL RAND Price and EPS Surprise | INGERSOLL RAND Quote

Our proven model conclusively shows that Ingersoll-Rand Plc will beat earnings this quarter as it currently carries a Zacks Rank #3 (Hold) and +0.78% Earnings ESP (the percentage difference between the Most Accurate estimate and the Zacks Consensus Estimate). Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.

For a possible earnings beat, the company should have the right combination of two key ingredients – a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Over the last 60 days, the Zacks Consensus Estimate for Ingersoll-Rand Plc increased 0.8% to $1.29 per share for the quarter. (For more please read: Can Ingersoll Maintain its Earnings Streak in Q3?)

Avery Dennison Corporation (AVY - Free Report) : The company is slated to release its results before the market opens. The company’s results were better-than-expected in the last four quarters, with an average positive earnings surprise of 7.44%.

AVERY DENNISON Price and EPS Surprise

 

AVERY DENNISON Price and EPS Surprise | AVERY DENNISON Quote

Our proven model conclusively shows that Avery Dennison Corporation will beat earnings this quarter because it currently carries a Zacks Rank #2 and a +1.00% Earnings ESP. Over the last 60 days, the Zacks Consensus Estimate for the stock increased 1% to $1.00 per share. (For more please read: Avery Dennison Q3 Earnings: A Beat in the Cards)

Fortune Brands Home & Security, Inc. : The company is slated to release its results after the market closes. The company’s results were better-than-expected in three of four trailing quarters, with an average positive earnings surprise of 7.02%.

FORTUNE BRD H&S Price and EPS Surprise

 

FORTUNE BRD H&S Price and EPS Surprise | FORTUNE BRD H&S Quote

Our proven model conclusively shows that Fortune Brands Home & Security will beat earnings this quarter because it currently carries a Zacks Rank #2 and a +2.56% Earnings ESP. Over the last 60 days, the Zacks Consensus Estimate for the stock increased 1.3% to 78 cents per share.

AGCO Corporation (AGCO - Free Report) : The machinery company is slated to release its results before the market opens. The company’s results were better-than-expected in all the four trailing quarters, with an average positive earnings surprise of 62.51%.

AGCO CORP Price and EPS Surprise

 

AGCO CORP Price and EPS Surprise | AGCO CORP Quote

Our proven model does not conclusively show that AGCO Corporation will beat earnings this quarter because it currently carries a Zacks Rank #3 and a 0.00% Earnings ESP. Over the last 60 days, the Zacks Consensus Estimate for the stock increased 2.9% to 36 cents per share.

Stay tuned! Check back on our full write-up on earnings release of Ingersoll-Rand Plc, Avery Dennison Corporation and AGCO Corporation.

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