Industrial Products, which is one of 16 Zacks sectors, includes the results of industrial stocks. Earnings for the sector are predicted to decline 5.2% year over year for the October-December quarter of 2019 on 0.8% growth in revenues. Margins are predicted to fall 0.6%. Notably, the sector’s earnings and revenues in the third quarter (ended September 2019) decreased 1.6% and 0.5% year over year, respectively.
Key Factors for Industrial Stocks
Operating conditions for industrial stocks were somewhat weak in the October-December quarter of 2019. The country’s industrial production decreased 0.5% year over year in the quarter, recording a fall of 0.5% in October, growth of 0.8% in November and a decline of 0.3% in December.
The manufacturing sector was weak in the quarter, with output down 1% year over year.
In addition, trade tensions between the United States and China might have hurt corporate margins. Also, global uncertainties, forex woes, high freight charges and cost-inflationary pressure, among others might have played spoilsport.
However, a few tailwinds — including gains from corporate tax changes, government’s emphasis on infrastructure development, government’s efforts to lower tariff-related woes by reaching a phase-one trade deal with China and others — might have supported performances of the companies.
Stocks Slated for Earnings Release on Jan 29
Below, we briefly discussed what we expect from five industrial stocks in the October-December quarter of 2019.
Ingersoll-Rand plc IR will release fourth-quarter 2019 results before market open. It delivered better-than-expected results in the last four quarters, with a positive earnings surprise of 5.48%, on average.
Ingersoll-Rand PLC (Ireland) Price, Consensus and EPS Surprise