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Industrial Stock Earnings Slated for Aug 1: CMPR, BDC & More

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The U.S. equity market is currently abuzz with earnings releases for the April-June quarter. Looking at the numbers of the S&P 500 group, results released so far gives us a rosy picture.

Per the latest Earnings Preview report, roughly 53% of the group members have reported results till Jul 27. So far, earnings of the companies, which already reported results, have increased 23.6% year over year while revenues have expanded 10.1%. Beat was measured at 80.8% for earnings and 72.1% for revenues.

For the Industrial Products  — one of the 16 Zacks sectors, earnings results released so far must have been impressive. This is evident from nearly 2.2% return generated by the sector in two weeks ended Jul 27. We believe important releases in this week and the next to be a major determinant in the movements of the sector.

In addition to the earnings results, there are many other factors that are influencing the sector. Of those, strengthening of industrial production in the United States, expanding manufacturing sector, rise in orders for U.S.-made machinery and a healthy job market are a few important ones. Moreover, the domestic corporates are benefiting from the implementation of the new tax policy in the country last December.

Expanding global and U.S. economies will also be conducive for industrial companies in the country. Per the International Monetary Fund, the global economy will expand 3.9% in 2018 versus 3.7% growth recorded in 2017, while the U.S. economy is projected to grow 2.9% in 2018, higher than 2.3% in 2017.

On the flip side, increasing trade tensions between the United States and other foreign nations, especially China, is increasing the cost of raw materials — mainly of steel and aluminum — for industrial companies. This is a major threat to corporate margins at present.

Considering all the aspects, the Industrial Products sector seems well positioned to record earnings and sales growth in the April-June quarter. Notably, it is one the fourteen sectors that are expected to record positive earnings growth in the reported quarter. The sector’s earnings are predicted to increase 28.5% year over year while revenues are anticipated to grow 11.6%.

For the S&P 500 group, earnings in the April-June quarter are projected to grow 23.6% year over year while revenues are anticipated to increase 8.8%.

What’s in Store for Industrial Companies: CMPR, SITE, BDC and NPO?

Below, we briefly discussed the expectations from the four industrial stocks, which are slated to report their numbers for the April-June quarter.

Cimpress N.V. (CMPR - Free Report) : The company will release its results tomorrow, after the market closes. It delivered better-than-expected results in three of the last four quarters, while lagged estimates in one. The average earnings surprise was a positive 85.92%.

Cimpress N.V Price, Consensus and EPS Surprise
 

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

Our proven model provides some idea about stocks that are about to release their earnings results. Per the model, a stock needs a combination of a positive Earnings ESP (the percentage difference between the Most Accurate Estimate and the Zacks Consensus Estimate) 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.

You can see the complete list of today’s Zacks #1 Rank stocks here.

Currently, Cimpress has a Zacks Rank #3 and an Earnings ESP of 0.00%. The company is making investments to tap new markets as well as improve its pricing, product quality and customer service. However, forex woes, industry competition and geopolitical tensions might be concerns.

Over the past 60 days, the Zacks Consensus Estimate for the company’s fourth-quarter fiscal 2018 (ended June 2018) has remained stable at 3 cents per share.

Note that we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated) going into the earnings announcement, especially when the company is seeing a negative estimate revision momentum.

SiteOne Landscape Supply, Inc. (SITE - Free Report) : The company will report its results tomorrow, before the market opens. It recorded better-than-expected results in one of the last four trailing quarters while lagging estimates in three. Despite this, average earnings surprise was a positive 11.92%.

SiteOne Landscape Supply, Inc. Price, Consensus and EPS Surprise
 

SiteOne Landscape Supply, Inc. Price, Consensus and EPS Surprise | SiteOne Landscape Supply, Inc. Quote

Currently, SiteOne Landscape carries a Zacks Rank #3 and has Earnings ESP of +0.97%. Over the past 60 days, the Zacks Consensus Estimate for the second quarter increased 0.6% to $1.55 per share.

Belden Inc. (BDC - Free Report) ): The company will release its numbers tomorrow, before the market opens. It delivered better-than-expected results in three of the trailing four quarters while lagging estimates in one. Average earnings surprise was a positive 2.32%.

Belden Inc Price, Consensus and EPS Surprise
 

Belden Inc Price, Consensus and EPS Surprise | Belden Inc Quote

Currently, Belden carries a Zacks Rank #3 and has Earnings ESP of 0.00%. Over the past 60 days, the Zacks Consensus Estimate for the second quarter remained stable at $1.44 per share.

EnPro Industries, Inc. (NPO - Free Report) : The company will release its numbers tomorrow, after the market closes. It delivered better-than-expected results in one of the trailing four quarters while lagging estimates in three. The average earnings surprise was a negative 17.62%.

EnPro Industries Price, Consensus and EPS Surprise
 

EnPro Industries Price, Consensus and EPS Surprise | EnPro Industries Quote

Currently, EnPro Industries carries a Zacks Rank #3 and has an Earnings ESP of +7.80%. Over the past 60 days, the Zacks Consensus Estimate for the company’s second quarter increased 20.4% to $1.12 per share.

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