Markets
MSM

Industrial Stocks Earnings Reports on Nov 1: EMR, ETN & More

The Q3 earnings season is in full swing, with results from 58.2% of the S&P 500 Index members already out (as on Oct 28). Earnings of these 291 members (accounting for 68.5% of the index's total market capitalization) are up 2.2% on 1.3% higher revenues.

After five consecutive quarters of earnings declines for the S&P 500 index, we are finally seeing a marginally positive overall growth trend for the index. On the whole, our latest data projects that the earnings for S&P 500 companies are now on track to grow 2% from the year-ago period on 1.4% higher revenues. This is comparable to a decline of 2.9%, expected a few weeks ago. (For more details, read our latest Earnings Preview article).

Further, the encouraging growth angle is being supplemented by a higher number of positive surprises compared to the recent quarters. In fact, 73.5% of the companies who have reported results have surpassed earnings estimates, with 57.4% coming ahead of revenue estimates. If this trend continues, it will likely paint a recovering growth picture for the times to come.

The industrial products sector is one of the sectors expected to chart positive earnings growth this quarter. Its earnings are on track to grow 5.9% in the quarter, on 0.7% lower sales compared with the last year.

Let's have a look at how some players within the sector, like Emerson Electric Co. EMR , Eaton Corporation plc ETN , MSC Industrial Direct Co. Inc. MSM and G&K Services Inc. GK are poised ahead of their scheduled announcements on Nov 1.

Emerson Electric: This company is engaged principally in the design, manufacture and sale of a broad range of electrical, electromechanical and electronic products and systems. It delivers products and services to industrial, commercial, and consumer markets globally.

The company has recorded a dull earnings beat history over the trailing four quarters, with two beats for as many misses. The company has posted a modest average positive surprise of 1.4% over the trailing four quarters. Last quarter, it had missed estimates by 4.8%.

Our proven model does not conclusively show that Emerson Electric is likely to beat on earnings in the to-be-reported quarter. (Read More: Emerson's Q4 Earnings: What's in Store for the Stock ?)

Emerson Electric presently has an Earnings ESP of 0.00% and a Zacks Rank #3 (Hold). The Zacks Consensus Estimate for the quarter is pegged at 89 cents. Despite a favorable rank, the company's 0.00% Earnings ESP makes surprise prediction inconclusive. Note that stocks with a Zacks Rank #1 (Strong Buy), or 2 (Buy) or 3 have a significantly higher chance of beating estimates.

Please check our Earnings ESP Filter that enables you find stocks that are expected to come out with earnings surprises.

EMERSON ELEC CO Price and EPS Surprise

EMERSON ELEC CO Price and EPS Surprise | EMERSON ELEC CO Quote

Eaton Corporation: This industrial company operates as a power management company worldwide and serves the Agriculture and Forestry, Aviation, Community Infrastructure, Construction, Data Centers, Energy, Government & Military, Healthcare, Manufacturing & Industrial, Residential and Vehicles markets.

The company has recorded a modest surprise history over the trailing four quarters,with two misses, along with two in-line earnings. Eaton Corporation has an average positive surprise of 2.7% over the trailing four quarters. Last quarter, it had reported in-line earnings.

Our proven model does not conclusively show that Eaton Corporation is likely to beat on earnings in the to-be-reported quarter. The company has an Earnings ESP of -1.75% and a Zacks Rank #4 (Sell). The Zacks Consensus Estimate for the quarter is pegged at $1.14.

Note that we caution against stocks with Zacks Rank #4 or #5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

EATON CORP PLC Price and EPS Surprise

EATON CORP PLC Price and EPS Surprise | EATON CORP PLC Quote

MSC Industrial: This companymarkets and distributes various ranges of metalworking and maintenance, repair, and operations products primarily in the U.S.

MSC Industrial has had a decent earnings history in recent times, with three consecutive earnings beats over the four trailing quarters, for an average positive surprise of 2.2%. Last quarter, it had beat estimates by 5%.

Our proven model does not conclusively show that MSC Industrial is likely to beat on earnings in the quarter. The company has an Earnings ESP of -2.04% and a Zacks Rank #3. The Zacks Consensus Estimate for the quarter is pegged at 98 cents. Despite a favorable rank, the company's negative Earnings ESP makes surprise prediction inconclusive. You can see the complete list of today's Zacks #1 Rank stocks here.

MSC INDL DIRECT Price and EPS Surprise

MSC INDL DIRECT Price and EPS Surprise | MSC INDL DIRECT Quote

G&K Services: This company provides branded uniform and facility services programs in the U.S. and Canada. The company has recorded a decent surprise history over the trailing four quarters, having beaten estimates thrice. The stock has an average positive surprise of 3.7% over the trailing four quarters. Last quarter, it had beat estimates by 5.3%.

Our proven model does not conclusively show that G&K Services is likely to beat on earnings in the quarter to be reported. The company has an Earnings ESP of +3.33% and a Zacks Rank #4. Despite having a positive Earnings ESP, the company's Zacks Rank #4 makes surprise prediction inconclusive. The Zacks Consensus Estimate for the quarter is pegged at 90 cents.

G&K SVCS A Price and EPS Surprise

G&K SVCS A Price and EPS Surprise | G&K SVCS A Quote

Keep an eye on our full earnings articles to see how these players finally fared in the quarter.

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>>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

EMERSON ELEC CO (EMR): Free Stock Analysis Report

EATON CORP PLC (ETN): Free Stock Analysis Report

MSC INDL DIRECT (MSM): Free Stock Analysis Report

G&K SVCS A (GK): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

MSM ETN EMR

Other Topics

Earnings Stocks

Latest Markets Videos