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Barnes Group (B) to Report Q2 Earnings: What to Expect?
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Machinery company Barnes Group Inc. (B - Free Report) is set to release second-quarter 2016 results on Jul 29, before the market opens. The Zacks Consensus Estimate is pegged at 59 cents per share.
In the trailing four quarters, Barnes Group delivered better-than-expected results in one, lagged behind in two and posted in-line result in one. Average earnings surprise was a negative 2.66%. In the last quarter the company’s earnings came in line with the Zacks Consensus Estimate of 54 cents per share. Let us see how things are shaping up prior to this announcement.
Factors to Influence Q2 Results
Financial performance of Barnes Group is highly correlated to the economic conditions as well as industrial production of the U.S. In second-quarter 2016, the country’s industrial output fell roughly 1% year over year. Also, regulatory issues in the aerospace business, unfavorable foreign currency movements and weak economic conditions in some developed and developing nations were major concerns.
We believe such headwinds might have adversely impacted the demand for Barnes Group’s products in the quarter. Despite such adversities, Barnes Group is benefiting from a diverse product portfolio and new business wins. Also, the company’s inorganic ways of strengthening its business will allow it to offer better and innovative products to customers in various operating regions. Rewarding shareholders with dividends and share buybacks is a priority for the company.
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. That is not the case here as you will see below.
Zacks ESP: Barnes Group has an ESP of 0.00% for second-quarter 2016. This is because the Most Accurate Estimate stands on par with the Zacks Consensus Estimate.
Zacks Rank: Barnes Group’ Zacks Rank #3 when combined with a 0.00% ESP makes surprise prediction difficult.
We caution against stocks with a Zacks Rank #4 or #5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing a negative estimate revisions momentum.
Stocks to Consider
Here are some companies in the sector you may want to consider, as they have the right combination of elements to post an earnings beat this quarter, according to our model.
Harsco Corporation , with an Earnings ESP of +38.46% and a Zacks Rank #1.
Allegion Plc (ALLE - Free Report) , with an Earnings ESP of +2.25% and a Zacks Rank #2.
Ball Corporation , with an Earnings ESP of +1.01% and a Zacks Rank #3.
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 >>
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Barnes Group (B) to Report Q2 Earnings: What to Expect?
Machinery company Barnes Group Inc. (B - Free Report) is set to release second-quarter 2016 results on Jul 29, before the market opens. The Zacks Consensus Estimate is pegged at 59 cents per share.
In the trailing four quarters, Barnes Group delivered better-than-expected results in one, lagged behind in two and posted in-line result in one. Average earnings surprise was a negative 2.66%. In the last quarter the company’s earnings came in line with the Zacks Consensus Estimate of 54 cents per share. Let us see how things are shaping up prior to this announcement.
Factors to Influence Q2 Results
Financial performance of Barnes Group is highly correlated to the economic conditions as well as industrial production of the U.S. In second-quarter 2016, the country’s industrial output fell roughly 1% year over year. Also, regulatory issues in the aerospace business, unfavorable foreign currency movements and weak economic conditions in some developed and developing nations were major concerns.
We believe such headwinds might have adversely impacted the demand for Barnes Group’s products in the quarter. Despite such adversities, Barnes Group is benefiting from a diverse product portfolio and new business wins. Also, the company’s inorganic ways of strengthening its business will allow it to offer better and innovative products to customers in various operating regions. Rewarding shareholders with dividends and share buybacks is a priority for the company.
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. That is not the case here as you will see below.
Zacks ESP: Barnes Group has an ESP of 0.00% for second-quarter 2016. This is because the Most Accurate Estimate stands on par with the Zacks Consensus Estimate.
Zacks Rank: Barnes Group’ Zacks Rank #3 when combined with a 0.00% ESP makes surprise prediction difficult.
BARNES GRP Price and EPS Surprise
BARNES GRP Price and EPS Surprise | BARNES GRP Quote
We caution against stocks with a Zacks Rank #4 or #5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing a negative estimate revisions momentum.
Stocks to Consider
Here are some companies in the sector you may want to consider, as they have the right combination of elements to post an earnings beat this quarter, according to our model.
Harsco Corporation , with an Earnings ESP of +38.46% and a Zacks Rank #1.
Allegion Plc (ALLE - Free Report) , with an Earnings ESP of +2.25% and a Zacks Rank #2.
Ball Corporation , with an Earnings ESP of +1.01% and a Zacks Rank #3.
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 >>