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Machinery Stocks Earnings Reports on Oct 27: SWK, FLS & More

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With the Q3 earnings season taking center stage, investors are all eagerly waiting to note the daily beats and misses of the mega companies.

While estimating the performance of U.S.-based machinery stocks, we believe that factors like election-induced market instability, a strong U.S. dollar, weak energy resource prices, lackluster export numbers of China and the Brexit referendum might act as spoilsport. However, the time isn’t ripe to draw any concrete conclusion, as the actual results might hold surprises.

According to the Zacks Industry classification, the machinery industry is broadly grouped under Industrial Products, one of the 16 Zacks sectors.

Below we briefly discuss the broader sectors’ earnings trend so far in the Jul–Sep 2016 quarter.

Our latest Earnings Preview article (released on Oct 21, 2016) reveals that roughly 21.7% of the Industrial stocks in the S&P 500 group have reported results for the July-September quarter, recording 0.5% fall in earnings and 0.8% increase in revenues on a year-over-year basis (y-o-y). We predict that earnings of all the industrial stocks in the S&P 500 will increase 3.7% year over year; however revenues are expected to inch down 0.3% over the same time frame.

What Awaits these 4 Machinery Stocks?

Stanley Black & Decker, Inc. (SWK - Free Report) is slated to report third-quarter 2016 results on Oct 27, before the market opens. The company’s average positive earnings surprise over the four trailing quarters is 6.12%.Our proven model estimates that the company is likely to beat earnings this quarter because it has the right combination of two key ingredients. The company carries a Zacks Rank #3 (Hold) and has an Earnings ESP of +1.24%. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.

STANLEY B&D INC Price and EPS Surprise

 

STANLEY B&D INC Price and EPS Surprise | STANLEY B&D INC Quote

Over the last seven days, the Zacks Consensus Estimate for the stock has remained stable at $1.61 per share. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Flowserve Corp. (FLS - Free Report) is set to release its third-quarter numbers, after the market closes. The company’s average negative earnings surprise over the four trailing quarters is 3.01%.

Our proven model does not conclusively show that Flowserve will beat estimates in this quarter. This is because the company carries a Zacks Rank #4 (Sell) and has an Earnings ESP of -1.64%. Over the last seven days, the Zacks Consensus Estimate for the stock remained unchanged at 62 cents per share. Headwinds like adverse currency movements, sluggish economic growth in several emerging markets and volatile energy sector might hurt the company’s results in the quarter under review. (Read more: Will Flowserve Continue Dismal Earnings Trend in Q3?).

FLOWSERVE CORP Price and EPS Surprise

 

FLOWSERVE CORP Price and EPS Surprise | FLOWSERVE CORP Quote

Colfax Corporation is slated to report its third-quarter earnings, before the market opens. The company has posted an average negative earnings surprise of 1.66% over the trailing four quarters.

Our proven model does not conclusively show that Colfax will beat earnings estimates in this quarter. This is because, the company carries a Zacks Rank #4 and an Earnings ESP of -8.57%. Over the last seven days, the Zacks Consensus Estimate for the stock remained stable at 35 cents per share.

COLFAX CORP Price and EPS Surprise

 

COLFAX CORP Price and EPS Surprise | COLFAX CORP Quote

Kennametal Inc. (KMT - Free Report) is slated to report first-quarter fiscal 2017 (ended Sep 30, 2016) results, before the market opens. The company’s average positive earnings surprise over the four trailing quarters is 10.72%.

Our proven model does not conclusively show that the company will beat earnings this quarter. This is because the company carries a Earnings ESP +28.57% but has an unfavorable Zacks Rank #4. Over the last seven days, the Zacks Consensus Estimate for the stock remained unchanged at 14 cents per share.

KENNAMETAL INC Price and EPS Surprise

 

KENNAMETAL INC Price and EPS Surprise | KENNAMETAL INC Quote

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Stanley Black & Decker, Inc. (SWK) - free report >>

Flowserve Corporation (FLS) - free report >>

Kennametal Inc. (KMT) - free report >>

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