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Pollution Control Stocks' Earnings on Nov 14: HEOFF, LIQT

LIQT HEOFF

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We are in the final lap of the third-quarter earnings season, with 345 companies or 89% of the companies of the S&P 500 having reported their quarterly numbers logging a 4% increase in earnings driven by 2.7% higher revenues We are finally set for a turnaround this quarter with the earnings graph entering the positive territory after remaining in the red for the last five quarters. Per our latest Earnings Outlook, overall third-quarter earnings for the S&P 500 index are now expected to rise 3.3% while revenues are anticipated to increase 1.5%.

The pollution control industry falls under the broader Industrial Products sector. Based on the earnings scorecard as of Nov 9, 95.7% of the sector participants on the S&P 500 Index have already reported their quarterly numbers. Earnings for these companies have increased 16.1% from the same period last year while revenues are down 0.3%. Taking into account the companies that are yet to disclose their numbers, the sector’s earnings growth is projected at 10.6%, while revenues will grow 0.1%.

Let’s take a peek into two pollution control companies that are slated to report their quarterly results on Nov 14.

H2O Innovation Inc. (HEOFF - Free Report) provides integrated technological water treatment solutions based on membrane filtration technology to municipal, energy and mining end-users primarily in the U.S. and Canada. The company will release its results for first-quarter fiscal 2017 after the market closes. H2O Innovation has an average positive earnings surprise of 50.00% in the last four quarters.

H2O INNOVATION Price
 

H2O INNOVATION Price | H2O INNOVATION Quote

The analysts polled by Zacks expect the company to report break-even results in the fiscal first quarter. The company will benefit from its initiatives taken in the last fiscal – launching new products, opening a new office in Spain, adding to its sales force, expansion in Mexico and two acquisitions. Moreover, it has won few contracts lately, taking its backlog to a robust $105.1 million.
 
An earnings beat is unlikely this quarter for H2O Innovation given its Earnings ESP of 0.00% and a Zacks Rank #4 (Sell). As it is, the Zacks #4 or 5 (Sell-rated stocks) should never be considered going into an earnings announcement. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

LiqTech International, Inc. (LIQT - Free Report) , a clean technology company that manufactures and markets highly specialized filtration products and systems, will release third-quarter 2016 results before the market opens.

In the trailing four quarters, the company lagged estimates in two quarters, while surpassing estimates in two. Average earnings surprise was a positive 37.50%.

LIQTECH INTL Price and EPS Surprise
 

LIQTECH INTL Price and EPS Surprise | LIQTECH INTL Quote

The Zacks Consensus Estimate for third-quarter is at 1 cent, a 50% drop from the prior-year quarter. The company continues to see improvement in its sales of water treatment systems. However, there remains some volatility in order inflow.

Our proven model does not conclusively show that LiqTech International will beat estimates this quarter because it currently carries an Earnings ESP of 0.00% and a Zacks Rank #3 (Hold).  You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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