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Barnes Group (B) to Report Q1 Earnings: What's in Store?
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Machinery company Barnes Group Inc. (B - Free Report) is set to release first-quarter 2017 results on Apr 28, before the market opens.
Over the last three months, the company’s shares yielded 7.70% return, outperforming the gain of 5.65% recorded by the Zacks categorized Machinery General Industrial industry.
The company topped earnings in three of the four trailing quarters, while reporting in-line results in one. Average earnings surprise was a positive 4.36%. Let us see how things are shaping up for Barnes Group this quarter.
Factors to Influence Q1 Results
Barnes Group is globally recognized for its wide products and services range for the industrial and aerospace end markets. To further improve its operations, the company has been undertaking organic and inorganic initiatives over time. In 2016, the company’s acquired assets contributed $75 million to sales while it agreed to acquire the privately held Gammaflux L.P. in the first quarter.
In addition, the U.S. government’s policies encouraging better trade relations, increase in infrastructural investments, job creation and high consumer-end demand will support growth of the machinery companies like Barnes Group. Also, other economic indicators are pointing toward a healthy business environment in the machinery industry.
Industrial production (measures the level of output of manufacturing, mining and utilities sectors in a country) grew 0.1% year over year in January, 0.4% in February and 1.5% in March. Notably, industrial production in the first quarter grew 1.5% year over year driven by improvements in manufacturing, mining and utilities outputs. Also, new export orders for U.S.-manufactured machinery increased 2.9% in the first two months of 2017.
However, we believe that Barnes Group is exposed to risks arising from soft commodity prices, poor economic conditions in some developed and developing nations and unfavorable foreign currency movements. For 2017, the company anticipates 1% negative impact from forex woes. Also, its growth momentum might get a setback from regulatory issues in the aerospace business and stiff competition in the industry.
Earnings Whispers
Our proven model does not conclusively show that Barnes Group will be able to pull a surprise this quarter. That 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 a likely earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks ESP: Barnes Group has an ESP of 0.00% for the quarter. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 60 cents.
Zacks Rank: Barnes Group’s Zacks Rank #3 increases the predictive power of ESP. However, we need to have a positive ESP to be confident about an earnings surprise.
Notably, we caution against stocks with Zacks Rank #4 or #5 (Sell-rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are some companies in the machinery industry you may want to consider, as they have the right combination of elements to post an earnings beat this quarter, according to our model.
Nordson Corporation (NDSN - Free Report) , with an Earnings ESP of +0.77% and a Zacks Rank #2.
Altra Industrial Motion Corporation , with an Earnings ESP of +5% and a Zacks Rank #3.
Looking for Ideas with Even Greater Upside?
Today's investment ideas are short-term, directly based on our proven 1 to 3 month indicator. In addition, I invite you to consider our long-term opportunities. These rare trades look to start fast with strong Zacks Ranks, but carry through with double and triple-digit profit potential. Starting now, you can look inside our home run, value, and stocks under $10 portfolios, plus more.
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Barnes Group (B) to Report Q1 Earnings: What's in Store?
Machinery company Barnes Group Inc. (B - Free Report) is set to release first-quarter 2017 results on Apr 28, before the market opens.
Over the last three months, the company’s shares yielded 7.70% return, outperforming the gain of 5.65% recorded by the Zacks categorized Machinery General Industrial industry.
The company topped earnings in three of the four trailing quarters, while reporting in-line results in one. Average earnings surprise was a positive 4.36%. Let us see how things are shaping up for Barnes Group this quarter.
Factors to Influence Q1 Results
Barnes Group is globally recognized for its wide products and services range for the industrial and aerospace end markets. To further improve its operations, the company has been undertaking organic and inorganic initiatives over time. In 2016, the company’s acquired assets contributed $75 million to sales while it agreed to acquire the privately held Gammaflux L.P. in the first quarter.
In addition, the U.S. government’s policies encouraging better trade relations, increase in infrastructural investments, job creation and high consumer-end demand will support growth of the machinery companies like Barnes Group. Also, other economic indicators are pointing toward a healthy business environment in the machinery industry.
Industrial production (measures the level of output of manufacturing, mining and utilities sectors in a country) grew 0.1% year over year in January, 0.4% in February and 1.5% in March. Notably, industrial production in the first quarter grew 1.5% year over year driven by improvements in manufacturing, mining and utilities outputs. Also, new export orders for U.S.-manufactured machinery increased 2.9% in the first two months of 2017.
However, we believe that Barnes Group is exposed to risks arising from soft commodity prices, poor economic conditions in some developed and developing nations and unfavorable foreign currency movements. For 2017, the company anticipates 1% negative impact from forex woes. Also, its growth momentum might get a setback from regulatory issues in the aerospace business and stiff competition in the industry.
Earnings Whispers
Our proven model does not conclusively show that Barnes Group will be able to pull a surprise this quarter. That 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 a likely earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks ESP: Barnes Group has an ESP of 0.00% for the quarter. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 60 cents.
Barnes Group, Inc. Price and EPS Surprise
Barnes Group, Inc. Price and EPS Surprise | Barnes Group, Inc. Quote
Zacks Rank: Barnes Group’s Zacks Rank #3 increases the predictive power of ESP. However, we need to have a positive ESP to be confident about an earnings surprise.
Notably, we caution against stocks with Zacks Rank #4 or #5 (Sell-rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are some companies in the machinery industry you may want to consider, as they have the right combination of elements to post an earnings beat this quarter, according to our model.
Parker-Hannifin Corporation (PH - Free Report) , with an Earnings ESP of +0.54% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Nordson Corporation (NDSN - Free Report) , with an Earnings ESP of +0.77% and a Zacks Rank #2.
Altra Industrial Motion Corporation , with an Earnings ESP of +5% and a Zacks Rank #3.
Looking for Ideas with Even Greater Upside?
Today's investment ideas are short-term, directly based on our proven 1 to 3 month indicator. In addition, I invite you to consider our long-term opportunities. These rare trades look to start fast with strong Zacks Ranks, but carry through with double and triple-digit profit potential. Starting now, you can look inside our home run, value, and stocks under $10 portfolios, plus more.
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