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Machinery Stocks' Q4 Earnings on Feb 23: ZBRA, TNC & More

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We are in the final lap of the fourth-quarter earnings season, with 411 companies on the S&P 500 index having already reported their quarterly numbers. Total earnings have gone up 8% on the back of a 4.9% rise in revenues. The results so far have been quite encouraging with growth on track to be the highest in two years and total earnings for the quarter set to be a new quarterly record.

Per the latest Earnings Preview report, considering the actual results from the S&P 500 members that are yet to report, total earnings are expected to rise 7.4% year over year driven by a 3.9% growth in revenues.

This quarter, 12 of the 16 Zacks sectors are expected to log positive growth. The industrial products sector is one such sector, which has put up a growth of 6% for the fourth quarter on the back of a 4.1% rise in revenues owing to increased capital investment in the infrastructure market.

In this write-up, we put the spotlight on a few machinery stocks that are scheduled to report their fourth-quarter 2016 results before the market opens on Feb 23.

Zebra Technologies Corporation (ZBRA - Free Report) designs, manufactures, sells, and supports direct thermal and thermal transfer label printers, radio frequency identification printer/encoders, dye sublimation card printers, real-time locating solutions, related accessories, and support software worldwide. The company had reported a 2.9% rise in earnings despite a 1.3% drop in sales in the last reported quarter.

The company recorded better-than-expected results in three of the four trailing quarters, with an average positive earnings surprise of 5.80%.

Zebra Technologies Corporation Price and EPS Surprise
 

Zebra Technologies Corporation Price and EPS Surprise | Zebra Technologies Corporation Quote

Our proven model does not conclusively show that Zebra Technologies is likely to beat estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

The combination of Zebra Technologies’ Zacks Rank #4 (Sell) and an Earnings ESP of 0.00% makes an earnings beat unlikely this quarter. Note that we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into an earnings announcement.

Tennant Company (TNC - Free Report) designs, manufactures, and markets cleaning solutions. The company had reported a 6% decline in earnings in the third quarter while revenues declined 2%.

The company had delivered positive earnings surprises in three of the four preceding quarters, with an average positive earnings surprise of 8.00%.

Tennant Company Price and EPS Surprise
 

Though Tennant Company’s Zacks Rank #3 increases the predictive power of the ESP, its 0.00% ESP makes surprise prediction difficult.

Milacron Holdings Corp manufactures, distributes, and services engineered and customized systems within the plastic technology and processing industry in the U.S. and internationally. Further, the top line dipped 0.2% while the bottom line declined 3% on a year-over-year basis in third-quarter 2016.

Milacron Holdings Corp. Price and EPS Surprise



Milacron has a fairly decent earnings surprise history. Milacron has outpaced the Zacks Consensus Estimate in three of the trailing four quarters, delivering a positive average earnings surprise of 5.66%.

The combination of Milacron’s Earnings ESP of +11.43% and a Zacks Rank #2 makes us reasonably confident of an earnings beat. (Read more: Milacron to Post Q4 Earnings: A Beat in the Cards?).

Chart Industries, Inc. (GTLS - Free Report) manufactures and sells engineered equipment for the industrial gas, energy, and biomedical industries worldwide. Further, the company had reported a 104% year-over-year increase in third-quarter earnings despite a 23% plunge in revenues.

Chart Industries, Inc. Price and EPS Surprise

 

Chart Industries, Inc. Price and EPS Surprise | Chart Industries, Inc. Quote

The company has a positive average earnings surprise of 548.51% in the last four quarters.

Though Chart Industries’ Rank #1 increases the predictive power of ESP, its Earnings ESP of 0.00% makes surprise prediction difficult. You can see the complete list of today’s Zacks #1 Rank stocks here.

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