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Machinery Stocks Q3 Earnings Slated on Nov 1: XYL, HY & More
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Over the past few quarters, uncertainties like weak commodity prices, low demand in the energy sector, weak economic conditions in some developed and developing nations, the U.K’s decision to exit the European Union, and unfavorable foreign currency movements have been influencing the machinery stocks. However, things seem to be turning around slowly, with the adverse impacts of these headwinds subsiding. The easing pressure resulted in better earnings figures so far in third-quarter 2016.
According to the Zacks Industry classification, the machinery industry is broadly grouped under Industrial Products, one of the 16 broad Zacks sectors. Below we briefly discuss the broader sectors’ earnings trend so far in the third quarter.
Per the latest Earnings Preview report, roughly 65.2% of Industrial stocks that reported their results as of Oct 28 recorded a 2.6% growth in earnings and 4.9% fall in revenue. Considering the results of all Industrial stocks in the S&P 500 Group, earnings for the sector are predicted to increase 5.9%, while revenue will decline 0.7%.
What’s in Store for 3 Machinery Stocks, XYL, HY, MCRN for Third-Quarter 2016?
Below we discuss briefly the expectations from the three machinery stocks scheduled to report their numbers tomorrow:
Xylem Inc. (XYL - Free Report) : The company is slated to release its results before the market opens. It recorded better-than-expected results in three of the four trailing quarters, with an average positive earnings surprise of 1.79%.
Our proven model does not conclusively show that Xylem Inc. will beat earnings this quarter as it currently carries a Zacks Rank #3 (Hold) and 0.00% Earnings ESP (the percentage difference between the Most Accurate estimate and the Zacks Consensus Estimate). Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
For a possible earnings beat, the company should have the right combination of two key ingredients – a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3.
Hyster-Yale Materials Handling, Inc. (HY - Free Report) : The company is slated to release its results after the market closes. Its results were below expectations in the last four quarter, with an average negative earnings surprise of 13.86%.
Our proven model does not conclusively show that Hyster-Yale Materials Handling will beat earnings this quarter because it currently carries a Zacks Rank #5 (Strong Sell) and a -10.64% Earnings ESP. Over the last 60 days, the Zacks Consensus Estimate for the stock decreased 16.8% to 94 cents.
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.
Milacron Holdings Corp. : The company is slated to release its results before the market opens. Its results were better than expected in three of four trailing quarters, with an average positive earnings surprise of 5.14%.
Stay tuned! Check back on our full write-up on earnings release of Xylem Inc. and Milacron Holdings Corp.
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Machinery Stocks Q3 Earnings Slated on Nov 1: XYL, HY & More
Over the past few quarters, uncertainties like weak commodity prices, low demand in the energy sector, weak economic conditions in some developed and developing nations, the U.K’s decision to exit the European Union, and unfavorable foreign currency movements have been influencing the machinery stocks. However, things seem to be turning around slowly, with the adverse impacts of these headwinds subsiding. The easing pressure resulted in better earnings figures so far in third-quarter 2016.
According to the Zacks Industry classification, the machinery industry is broadly grouped under Industrial Products, one of the 16 broad Zacks sectors. Below we briefly discuss the broader sectors’ earnings trend so far in the third quarter.
Per the latest Earnings Preview report, roughly 65.2% of Industrial stocks that reported their results as of Oct 28 recorded a 2.6% growth in earnings and 4.9% fall in revenue. Considering the results of all Industrial stocks in the S&P 500 Group, earnings for the sector are predicted to increase 5.9%, while revenue will decline 0.7%.
What’s in Store for 3 Machinery Stocks, XYL, HY, MCRN for Third-Quarter 2016?
Below we discuss briefly the expectations from the three machinery stocks scheduled to report their numbers tomorrow:
Xylem Inc. (XYL - Free Report) : The company is slated to release its results before the market opens. It recorded better-than-expected results in three of the four trailing quarters, with an average positive earnings surprise of 1.79%.
XYLEM INC Price and EPS Surprise
XYLEM INC Price and EPS Surprise | XYLEM INC Quote
Our proven model does not conclusively show that Xylem Inc. will beat earnings this quarter as it currently carries a Zacks Rank #3 (Hold) and 0.00% Earnings ESP (the percentage difference between the Most Accurate estimate and the Zacks Consensus Estimate). Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
For a possible earnings beat, the company should have the right combination of two key ingredients – a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3.
Over the last 60 days, the Zacks Consensus Estimate for Xylem Inc. remained pegged at 53 cents. (For more please read: Will Q3 Earnings Hold a Surprise for Xylem Stock?)
Hyster-Yale Materials Handling, Inc. (HY - Free Report) : The company is slated to release its results after the market closes. Its results were below expectations in the last four quarter, with an average negative earnings surprise of 13.86%.
HYSTER-YALE MAT Price and EPS Surprise
HYSTER-YALE MAT Price and EPS Surprise | HYSTER-YALE MAT Quote
Our proven model does not conclusively show that Hyster-Yale Materials Handling will beat earnings this quarter because it currently carries a Zacks Rank #5 (Strong Sell) and a -10.64% Earnings ESP. Over the last 60 days, the Zacks Consensus Estimate for the stock decreased 16.8% to 94 cents.
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.
Milacron Holdings Corp. : The company is slated to release its results before the market opens. Its results were better than expected in three of four trailing quarters, with an average positive earnings surprise of 5.14%.
MILACRON HLDGS Price and EPS Surprise
MILACRON HLDGS Price and EPS Surprise | MILACRON HLDGS Quote
Our proven model conclusively shows that Milacron Holdings will beat earnings this quarter because it currently has a +2.63% Earnings ESP and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here. Over the last 60 days, the Zacks Consensus Estimate for the stock remained pegged at 38 cents. (For more please read: Is Milacron Poised to Beat Earnings Estimates in Q3?)
Stay tuned! Check back on our full write-up on earnings release of Xylem Inc. and Milacron Holdings Corp.
Looking for Ideas with Even Greater Upside?
Today's investment ideas are short-term, directly based on our proven 1 to 3 month indicator. In addition, I invite you to consider our long-term opportunities. These rare trades look to start fast with strong Zacks Ranks, but carry through with double and triple-digit profit potential. Starting now, you can look inside our home run, value, and stocks under $10 portfolios, plus more. Click here for a peek at this private information>>