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 Apr–Jun 2016 quarter. However, the impact of such headwinds was subdued compared to the previous quarter. In the U.S., roughly 1% year-over-year decline in industrial production is believed to have impacted industrial machine and tool makers.
As of Jul 27, roughly 42.9% of industrial products stocks in the S&P 500 Group reported results for the April–June quarter, recording a 2.3% decline in earnings and 5.3% fall in revenue. The prevalent macro headwinds are likely to negatively impact results for the Industrial Products sector. Earnings in the quarter are predicted to decline 5.6%, while revenue will likely fall 5.8%.
What’s in Store for 2 Industrial Stocks, RXN and SNHY?
Below we discuss briefly the expectations from the upcoming results (April–June quarter) for two industrial stocks:
Rexnord Corporation : This industrial company is slated to release its first-quarter fiscal 2017 (ended Jun 2016) results on Aug 1, after the market closes. In the four trailing quarters, the company reported better-than-expected results, with an average positive earnings surprise of 13.65%.
Our proven model does not conclusively show that Rexnord Corporation will be able to pull an earnings beat 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 #3 and -3.33% ESP. Over the last 60 days, the Zacks Consensus Estimate for the stock remained unchanged at 30 cents for the quarter.
Sun Hydraulics Corp. : The company is anticipated to release its second-quarter 2016 results on Aug 1. In the trailing four quarters, the company reported better-than-expected results in one quarter, lagged in two and recorded in-line results in one. Average earnings surprise was a negative 0.15%.
Our proven model does not conclusively show that Sun Hydraulics 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 26 cents for second-quarter 2016.
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Industrial Stocks' Earnings to Watch on Aug 1: RXN, SNHY
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 Apr–Jun 2016 quarter. However, the impact of such headwinds was subdued compared to the previous quarter. In the U.S., roughly 1% year-over-year decline in industrial production is believed to have impacted industrial machine and tool makers.
As of Jul 27, roughly 42.9% of industrial products stocks in the S&P 500 Group reported results for the April–June quarter, recording a 2.3% decline in earnings and 5.3% fall in revenue. The prevalent macro headwinds are likely to negatively impact results for the Industrial Products sector. Earnings in the quarter are predicted to decline 5.6%, while revenue will likely fall 5.8%.
What’s in Store for 2 Industrial Stocks, RXN and SNHY?
Below we discuss briefly the expectations from the upcoming results (April–June quarter) for two industrial stocks:
Rexnord Corporation : This industrial company is slated to release its first-quarter fiscal 2017 (ended Jun 2016) results on Aug 1, after the market closes. In the four trailing quarters, the company reported better-than-expected results, with an average positive earnings surprise of 13.65%.
REXNORD CORP Price and EPS Surprise
REXNORD CORP Price and EPS Surprise | REXNORD CORP Quote
Our proven model does not conclusively show that Rexnord Corporation will be able to pull an earnings beat 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 #3 and -3.33% ESP. Over the last 60 days, the Zacks Consensus Estimate for the stock remained unchanged at 30 cents for the quarter.
Sun Hydraulics Corp. : The company is anticipated to release its second-quarter 2016 results on Aug 1. In the trailing four quarters, the company reported better-than-expected results in one quarter, lagged in two and recorded in-line results in one. Average earnings surprise was a negative 0.15%.
SUN HYDRAULICS Price and EPS Surprise
SUN HYDRAULICS Price and EPS Surprise | SUN HYDRAULICS Quote
Our proven model does not conclusively show that Sun Hydraulics 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 26 cents for second-quarter 2016.
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