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Industrial Stocks' Earnings on Aug 7: ESE, IIVI, ZBRA & More

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The Q2 earnings season is nearing the final stages on an impressive note. Nearly 381 S&P 500 members have already released their results, till Aug 2. Per our latest Earnings Preview, total earnings for these companies are up 25% year over year on 10.4% higher revenues, with 80.1% beating earnings estimates, and 73.8% surpassing top-line expectations. Notably, overall earnings for S&P 500 companies are anticipated to be up 23.9% from the year-ago quarter on revenues that are estimated to increase 9.3%.

The Zacks Industrial Products sector is one of the 14 sectors anticipated to report double-digit earnings growth in the quarter. Our Earnings Preview reveals that earnings and revenues of all the industrial stocks in the benchmark index will likely climb 34.5% and 12.4%, respectively, on a year-over-year basis in this reporting cycle.

Industrial stocks have been in investors’ good graces, of late. Growth in manufacturing and mining sectors boosted up June’s industrial production numbers in the United States. Investments across these domains have been gathering steaming on the back of the White House-enacted tax overhaul and an upbeat job market.

Also capacity utilization remaining below the long-term average makes us optimistic toward the sector’s performance going forward.

Nonetheless, the Trump administration’s aggressive stance on trade issues, retaliatory measures from other countries or higher prices for consumables might derail industrial gains, going forward.

What’s in Store for These 4 Industrial Stocks?

ESCO Technologies Inc. (ESE - Free Report) is set to report third-quarter fiscal 2018 (ended June 2018) results, after the market closes. This Zacks Rank #3 (Hold) stock pulled off an average positive earnings surprise of 6.83%, over the last four quarters.

Per our proven model, a stock needs to have a combination of a positive Earnings ESP, and a Zacks Rank #1 (Strong Buy) or 2 (Buy) or at least 3, for a likely earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

The stock carries a favorable Zacks Rank, but an Earnings ESP of 0.00% makes surprise prediction inconclusive for the to-be-reported quarter. The Zacks Consensus Estimate for the company’s Q3 earnings is currently pegged at 71 cents, in line with the Most Accurate Estimate.

You can see the complete list of today’s Zacks #1 Rank stocks here.

II-VI Incorporated (IIVI - Free Report) is slated to report fourth-quarter fiscal 2018 (ended June 2018) results, before the market opens. This Zacks Rank #3 company delivered an average positive earnings surprise of 11.46%, over the trailing four quarters. The company’s favorable Zacks Rank, when combined with an Earnings ESP of +1.91%, predicts a likely earnings beat. The Zacks Consensus Estimate for the company’s Q4 earnings is currently pegged at 39 cents, a penny lower than the Most Accurate Estimate.

Zebra Technologies Corporation (ZBRA - Free Report) will report second-quarter 2018 earnings, before the market opens. This Zacks #3 Ranked company came up with an average positive earnings surprise of 11.76%, for the preceding four quarters. The stock carries a favorable Zacks Rank, but an Earnings ESPof -2.49% makes surprise prediction inconclusive for the to-be-reported quarter. The Zacks Consensus Estimate for the company’s Q2 earnings is currently pegged at $2.25, higher than the Most Accurate Estimate of $2.19 per share.

Emerson Electric Co. (EMR - Free Report) is scheduled to report third-quarter fiscal 2018 (ended June 2018) results, before the market opens. The company reported an average positive earnings surprise of 4.55%, over the past four quarters. Notably, in the last reported quarter, Emerson’s earnings of 76 cents per share surpassed the Zacks Consensus Estimate by 7.04%.

The fiscal third-quarter earnings of this Zacks Rank #2 stock will likely benefit from solid end-market demand and operational leverage. Nevertheless, rising cost of sales remains a cause of concern. (Read More: Emerson to Report Q3 Earnings: What's in the Cards?)

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