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Industrial Stocks' Earnings on Jan 31: JCI, IR, AVY, CMPR

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The earnings season is off to a solid start with decent performance across the table. About 133 S&P 500 members have already released their results till Jan 26. Total earnings for these companies are up 12.3% year over year on 8.8% higher revenues, with 81.2% beating earnings estimates and 78.9% surpassing top-line expectations. Based on the hitherto observed pattern, the October-December 2017 quarter is anticipated to register modest double-digit percentage earnings growth on a year-over-year basis.  

Per the latest Earnings Preview, overall earnings for all the S&P 500 companies are expected to be up 11.6% on 7.5% growth in revenues. This represents an improved growth projection from the previous quarter driven by a corporate tax overhaul and relatively healthy job data, which in turn boosted corporate earnings, stoked investments and trickled down to employees in some instances. Experts widely believe that earnings growth is likely to improve steadily in 2018 and beyond.

The Industrial Products sector appears to be quite strong. For the sector, earnings are expected to improve 29.5% year over year while sales are touted to rise 13.7% due to higher investments for infrastructure development.

Let’s take a sneak peek at four major Industrial stocks scheduled to report earnings tomorrow to see how things are shaping up for the upcoming results.

Johnson Controls International plc (JCI - Free Report) is scheduled to report first-quarter fiscal 2018 results before the opening bell. For fiscal 2018, the company has provided outlook for adjusted EPS before special items within the range of $2.75-$2.85, reflecting an increase of 6-10% year over year. However, divesture of its multiple businesses is adversely impacting the company’s profits and revenues. (Read more: Johnson Controls Q1 Earnings: What's in the Cards?)

For the to-be-reported quarter, the company has an Earnings ESP of +2.76%, and Zacks Rank #4 (Sell), making an earnings surprise prediction uncertain. 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 see the complete list of today’s Zacks #1 Rank stocks here.

Ingersoll-Rand Plc (IR - Free Report) is scheduled to report fourth-quarter 2017 results before the opening bell. Ingersoll is focusing on improving the efficiencies and capabilities of products and services within its core businesses. The company is likely to achieve steady improvement in operating profitability with new product developments, investments in IT platform and enhancement of channel services footprint and product management capabilities. We remain fairly conclusive on an earnings beat prediction this quarter as it has an ESP of +0.42% and a Zacks Rank #3. (Read more: Will High Climate Revenues Drive Ingersoll Q4 Earnings?)

Avery Dennison Corporation (AVY - Free Report) is slated to release fourth-quarter 2017 results before the opening bell. In the Industrial and Healthcare Materials segment, the company will continue to witness solid organic growth for both the industrial and the health care categories. The segment will also gain from the Yongle, Finesse and Mactac acquisitions. Further, focus on efforts to drive productivity with continuous investments to support growth will boost margins in the to-be-reported quarter. We remain inconclusive on earnings beat prediction this quarter as it has an ESP of 0.00% and a Zacks Rank #3. (Read more: What to Expect from Avery Dennison in Q4 Earnings?)

Cimpress N.V. (CMPR - Free Report) is scheduled to report second-quarter fiscal 2018 results after the closing bell. The company is making steady progress with investments in new markets and the business strategy is now focused on higher quality products and delivery, increased customer service and more transparent pricing. In addition, Cimpress has been acquiring firms with complementary product offerings and expects to ramp up its revenues with operating synergies through economies of scale and technological collaboration to serve a wide spectrum of customers across the globe. We remain inconclusive on earnings beat prediction this quarter as it has an ESP of 0.00% and a Zacks Rank #3.

Cimpress N.V Price and EPS Surprise

 

Cimpress N.V Price and EPS Surprise | Cimpress N.V Quote

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