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Machinery Stocks' Earnings Slated on Feb 2: XYL, PH & More
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In 2016, several factors restricted the growth momentum of the major and developing economies worldwide. These included weak commodity prices, low demand in the energy sector, poor economic conditions in some developed and developing nations, the U.K’s decision to exit the European Union, and unfavorable foreign currency movements.
In the U.S., Industrial Machinery was one of the most adversely impacted industries by the uncertainties in the global arena. However, the adverse impacts of the above-mentioned headwinds seem to be ebbing while the policies of the newly elected President Donald Trump will also prove beneficial for machinery stocks.
According to the Zacks Industry classification, the machinery industry is broadly grouped under Industrial Products, one of the 16 broad Zacks sectors. Below we briefly discuss the broader sectors’ earnings trend so far in the fourth quarter.
Per the Earnings Preview dated Jan 27, 2017, roughly 31.8% of Industrial stocks that reported their Oct-Dec 2016 results as of Jan 27 recorded a 4.5% growth in earnings and 4.3% fall in revenues. Considering the results of all Industrial stocks in the S&P 500 Group, earnings for the sector are predicted to increase 1.4%, while revenues will grow 4.1%.
What’s in Store for 4 Machinery Stocks, XYL, PH, KMT, and CFX for October-December Quarter?
Below we discuss briefly the expectations from the four machinery stocks scheduled to report their numbers tomorrow:
Xylem Inc. (XYL - Free Report) : The company is slated to release its fourth-quarter 2016 results before the market opens. It recorded better-than-expected results in three of the four trailing quarters, while reporting in-line results in one. Average earnings surprise was a positive 1.74%.
Our proven model does not conclusively show that Xylem Inc. will beat earnings this quarter as it currently carries a Zacks Rank #4 (Sell) and -3.08% Earnings ESP (the percentage difference between the Most Accurate estimate and the Zacks Consensus Estimate). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
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 (Hold).
Note that we caution against stocks with a Zacks Rank #4 or #5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing a negative estimate revisions momentum.
Parker-Hannifin Corporation (PH - Free Report) : The company is slated to release its second-quarter fiscal 2017 results before the market opens. Its results were above expectations in the last four quarters, with an average positive earnings surprise of 10.53%.
Parker-Hannifin Corporation Price and EPS Surprise
Our proven model does not conclusively show that Parker-Hannifin Corporation will beat earnings this quarter because it currently carries a Zacks Rank #3 and a 0.00% Earnings ESP.
Kennametal Inc. (KMT - Free Report) : The company is slated to release its fourth-quarter 2016 results before the market opens. Its results were better than expected in two of four trailing quarters, while were lower than expected in two. Average earnings surprise was a positive 14.45%.
Our proven model conclusively shows that Kennametal Inc. will beat earnings this quarter because it currently has a +13.64% Earnings ESP and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here. Over the last 60 days, the Zacks Consensus Estimate for the stock remained unchanged at 22 cents.
Colfax Corporation : The company is slated to release its fourth-quarter 2016 results before the market opens. Its results were better than expected in four trailing quarters, with an average positive earnings surprise of 11.57%.
Our proven model conclusively shows that Colfax Corporation will beat earnings this quarter because it currently has a +6.67% Earnings ESP and a Zacks Rank #3. Over the last 60 days, the Zacks Consensus Estimate for the stock remained stable at 45 cents.
Stay tuned! Check back on our full write-up on earnings release of these stocks.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? As of early December, the 2016 Top 10 produced 5 double-digit winners including oil and natural gas giant Pioneer Natural Resources which racked up a stellar +50% gain. The new list is painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. Be among the very first to see it>>
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Machinery Stocks' Earnings Slated on Feb 2: XYL, PH & More
In 2016, several factors restricted the growth momentum of the major and developing economies worldwide. These included weak commodity prices, low demand in the energy sector, poor economic conditions in some developed and developing nations, the U.K’s decision to exit the European Union, and unfavorable foreign currency movements.
In the U.S., Industrial Machinery was one of the most adversely impacted industries by the uncertainties in the global arena. However, the adverse impacts of the above-mentioned headwinds seem to be ebbing while the policies of the newly elected President Donald Trump will also prove beneficial for machinery stocks.
According to the Zacks Industry classification, the machinery industry is broadly grouped under Industrial Products, one of the 16 broad Zacks sectors. Below we briefly discuss the broader sectors’ earnings trend so far in the fourth quarter.
Per the Earnings Preview dated Jan 27, 2017, roughly 31.8% of Industrial stocks that reported their Oct-Dec 2016 results as of Jan 27 recorded a 4.5% growth in earnings and 4.3% fall in revenues. Considering the results of all Industrial stocks in the S&P 500 Group, earnings for the sector are predicted to increase 1.4%, while revenues will grow 4.1%.
What’s in Store for 4 Machinery Stocks, XYL, PH, KMT, and CFX for October-December Quarter?
Below we discuss briefly the expectations from the four machinery stocks scheduled to report their numbers tomorrow:
Xylem Inc. (XYL - Free Report) : The company is slated to release its fourth-quarter 2016 results before the market opens. It recorded better-than-expected results in three of the four trailing quarters, while reporting in-line results in one. Average earnings surprise was a positive 1.74%.
Xylem Inc. Price and EPS Surprise
Xylem Inc. Price and EPS Surprise | Xylem Inc. Quote
Our proven model does not conclusively show that Xylem Inc. will beat earnings this quarter as it currently carries a Zacks Rank #4 (Sell) and -3.08% Earnings ESP (the percentage difference between the Most Accurate estimate and the Zacks Consensus Estimate). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
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 (Hold).
Note that we caution against stocks with a Zacks Rank #4 or #5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing a negative estimate revisions momentum.
Over the last 60 days, the Zacks Consensus Estimate for Xylem Inc. decreased 1.5% to 65 cents (for more please read: Xylem Q4 Earnings: What's in Store for the Stock?).
Parker-Hannifin Corporation (PH - Free Report) : The company is slated to release its second-quarter fiscal 2017 results before the market opens. Its results were above expectations in the last four quarters, with an average positive earnings surprise of 10.53%.
Parker-Hannifin Corporation Price and EPS Surprise
Parker-Hannifin Corporation Price and EPS Surprise | Parker-Hannifin Corporation Quote
Our proven model does not conclusively show that Parker-Hannifin 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 remained stable at $1.40 (for more please read: Can Parker-Hannifin Maintain its Earnings Streak in Q2?).
Kennametal Inc. (KMT - Free Report) : The company is slated to release its fourth-quarter 2016 results before the market opens. Its results were better than expected in two of four trailing quarters, while were lower than expected in two. Average earnings surprise was a positive 14.45%.
Kennametal Inc. Price and EPS Surprise
Kennametal Inc. Price and EPS Surprise | Kennametal Inc. Quote
Our proven model conclusively shows that Kennametal Inc. will beat earnings this quarter because it currently has a +13.64% Earnings ESP and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here. Over the last 60 days, the Zacks Consensus Estimate for the stock remained unchanged at 22 cents.
Colfax Corporation : The company is slated to release its fourth-quarter 2016 results before the market opens. Its results were better than expected in four trailing quarters, with an average positive earnings surprise of 11.57%.
Colfax Corporation Price and EPS Surprise
Colfax Corporation Price and EPS Surprise | Colfax Corporation Quote
Our proven model conclusively shows that Colfax Corporation will beat earnings this quarter because it currently has a +6.67% Earnings ESP and a Zacks Rank #3. Over the last 60 days, the Zacks Consensus Estimate for the stock remained stable at 45 cents.
Stay tuned! Check back on our full write-up on earnings release of these stocks.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? As of early December, the 2016 Top 10 produced 5 double-digit winners including oil and natural gas giant Pioneer Natural Resources which racked up a stellar +50% gain. The new list is painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. Be among the very first to see it>>