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Factors Setting the Tone for Modine's (MOD) Q1 Earnings

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Modine Manufacturing Company (MOD - Free Report) is slated to release first-quarter fiscal 2022 results on Aug 4, after the closing bell. The Zacks Consensus Estimate for the quarter’s earnings is pegged at 28 cents per share.

The thermal management system manufacturer delivered better-than-expected earnings in the last reported quarter on strong contribution from the Building HVAC Systems ("BHVAC") and Heavy Duty Equipment (“HDE”) segments.

Trend in Estimate Revisions

The Zacks Consensus Estimate for the fiscal first-quarter earnings per share has remained unchanged over the past 60 days. The figure indicates a year-over-year rise of a whopping 411.1%.

Factors at Play

Modine's business of supplying components for building HVAC systems has been recording growth for the last several quarters. Higher sales of heating and ventilation products are likely to have buoyed revenues and earnings of the BHVAC unit. Also, HDE segment sales are expected to have increased during the quarter under review on higher demand from off-highway and truck customers. The rising revenues from these segments are anticipated to have fueled Modine’s fiscal first-quarter top–line growth. Further, cost-saving efforts implemented by the company are likely to have aided margins.

However, for the quarter under discussion, the sales volume might have declined in the Commercial and Industrial Solutions ("CIS") segment amid lower data-center sales.

All in all, Modine is expected to have benefited from solid revenues from the BHVAC and HDE units, partly offset by lower contribution from the CIS segment.

What the Zacks Model Says

Our proven model does not conclusively predict an earnings beat for Modine this time around. The combination of a positive Earnings ESP, and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), increases the odds of an earnings beat. But that’s not the case here. You can see the complete list of today’s Zacks #1 Rank stocks here.

Earnings ESP: Modine has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate is in line with the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Modine carries a Zacks Rank of 3, currently.

Stocks to Consider

Here are a few stocks lined up to release quarterly results soon. Encouragingly, our model predicts earnings beats for these stocks:

ParkerHannifin Corporation (PH - Free Report) has an Earnings ESP of +1.77% and carries a Zacks Rank #3, currently. The company is scheduled to report quarterly numbers on Aug 5.

Fox Factory Holding Corp. (FOXF - Free Report) has an Earnings ESP of +1.15% and carries a Zacks Rank #2, at present. It is slated to report earnings results on Aug 5.

Lear Corporation (LEA - Free Report) has an Earnings ESP of +3.98% and carries a Zacks Rank of 3, currently. The company is set to announce quarterly figures on Aug 6.