We believe that economic uncertainties in some developed and emerging nations, soft commodity prices and forex woes played spoilsport for industries like Industrial Products in second-quarter 2016. However, the impact of such headwinds is subdued compared with first-quarter 2016. In the U.S., roughly 1% year-over-year decline in industrial production is believed to have impacted industrial machine and tool makers.
According to the Zacks Industry classification, the machinery industry is broadly grouped under Industrial Products, one of the 16 broad Zacks sectors. Per our report dated Jul 15, earnings for the Industrial Products sector are expected to decline 8.6% in the second quarter, while revenues will likely fall 5.6%.
What’s in Store for 2 Machinery Stocks, GGG and ITW?
Below we discuss briefly the expectations from the upcoming results (Apr-Jun quarter) for two machinery stocks:
Graco Inc. (GGG - Free Report) : This machinery company is slated to release its second-quarter 2016 results on Jul 20, after the market closes. In the four trailing quarters, the company reported below-expected results in one while surpassing estimates in the rest with an average positive earnings surprise of 8.84%.
Our proven model does not conclusively show that Graco Inc. is likely to beat earnings this quarter. This is because the company lacks the right combination of two key ingredients – 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). The company currently carries a Zacks Rank #4 (Sell) and a 0.00% ESP. Over the last 60 days, the Zacks Consensus Estimate for the stock remained unchanged at 99 cents for second-quarter 2016.
Illinois Tool Works Inc. (ITW - Free Report) : This machinery stock is gearing up to release its second-quarter 2016 results on Jul 20, before the market opens. The company reported better-than-expected results over the four trailing quarters, with an average positive earnings surprise of 1.95%.
Our proven model does not conclusively show that Illinois Tool Works will beat earnings this quarter because it currently carries a Zacks Rank #3 and a 0.00% Earnings ESP. The Zacks Consensus Estimate for the stock is currently pegged at $1.40 for second-quarter 2016. (For more please read: Illinois Tool To Report Q2 Earnings: What's in Store?)
Stay tuned! Check back on our full write-up on earnings release of Illinois Tool Works Inc.
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Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
We believe that economic uncertainties in some developed and emerging nations, soft commodity prices and forex woes played spoilsport for industries like Industrial Products in second-quarter 2016. However, the impact of such headwinds is subdued compared with first-quarter 2016. In the U.S., roughly 1% year-over-year decline in industrial production is believed to have impacted industrial machine and tool makers.
According to the Zacks Industry classification, the machinery industry is broadly grouped under Industrial Products, one of the 16 broad Zacks sectors. Per our report dated Jul 15, earnings for the Industrial Products sector are expected to decline 8.6% in the second quarter, while revenues will likely fall 5.6%.
What’s in Store for 2 Machinery Stocks, GGG and ITW?
Below we discuss briefly the expectations from the upcoming results (Apr-Jun quarter) for two machinery stocks:
Graco Inc. (GGG - Free Report) : This machinery company is slated to release its second-quarter 2016 results on Jul 20, after the market closes. In the four trailing quarters, the company reported below-expected results in one while surpassing estimates in the rest with an average positive earnings surprise of 8.84%.
Our proven model does not conclusively show that Graco Inc. is likely to beat earnings this quarter. This is because the company lacks the right combination of two key ingredients – 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). The company currently carries a Zacks Rank #4 (Sell) and a 0.00% ESP. Over the last 60 days, the Zacks Consensus Estimate for the stock remained unchanged at 99 cents for second-quarter 2016.
Illinois Tool Works Inc. (ITW - Free Report) : This machinery stock is gearing up to release its second-quarter 2016 results on Jul 20, before the market opens. The company reported better-than-expected results over the four trailing quarters, with an average positive earnings surprise of 1.95%.
Our proven model does not conclusively show that Illinois Tool Works will beat earnings this quarter because it currently carries a Zacks Rank #3 and a 0.00% Earnings ESP. The Zacks Consensus Estimate for the stock is currently pegged at $1.40 for second-quarter 2016. (For more please read: Illinois Tool To Report Q2 Earnings: What's in Store?)
Stay tuned! Check back on our full write-up on earnings release of Illinois Tool Works Inc.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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