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Industrial Stocks Earnings Roster for This Week: DE, B, CCC

We are in the final lap of the fourth-quarter earnings season, with 375 companies on the S&P 500 index having already reported their quarterly numbers. Total earnings have gone up 7.2% on the back of a 4.6% rise in revenues, an improvement from the 3.0% earnings growth on +2.3% revenue growth for this same group of companies in third-quarter 2016. The results so far have been quite encouraging with growth on track to be the highest in two years and total earnings for the quarter set to be a new quarterly record.

Per the latest Earnings Preview report, considering the actual results from the S&P 500 members that are yet to report, total earnings are expected to rise 7.4% year over year driven by a 3.9% growth in revenues.

In this write-up, we put the spotlight on a few industrial stocks that are expected to report their quarterly results this week.

This quarter, 11 of the 16 sectors are expected to log positive growth. The industrial products sector is one such sector, with a projected growth of 5.1% for the fourth quarter on the back of a 4.1% rise in revenues driven by increased capital investment in the infrastructure market. Looking at the earnings growth of 8.4% put up on the scoreboard by 90.9% of the companies (91% of the total market capitalization) that have reported in the sector, it is on track to achieve the projected numbers.

Agricultural and construction equipment manufacturer, Deere & CompanyDE is scheduled to announce first-quarter fiscal 2017 results on Feb 17, before the opening bell. Last quarter, Deere's earnings slumped 17% while sales fell 5% year over year.

Deere & Company Price and EPS Surprise

Deere & Company Price and EPS Surprise | Deere & Company Quote

Deere has outpaced the Zacks Consensus Estimate in each of the trailing four quarters, with an average earnings beat of 58.17%.

The stock has performed in line with the Zacks categorized Machinery-Farm sub industry, in the last three months. The stock has gained 19.6%, in line with the industry.

While low commodity prices and stagnant farm income will continue to dent Deere's equipment sales, it will benefit from cost saving efforts. Our proven model shows that Deere has the right combination of the two key ingredients to beat estimates. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to be able to beat earnings and Deere has the right mix. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

Deere has an Earnings ESP of +13.73% and a Zacks Rank #3. (Read more: Deere Q1 Earnings: A Beat in Store for the Stock? ).

International manufacturer of precision metal parts and distributor of industrial supplies, Barnes Group Inc.B is scheduled to release fourth-quarter 2016 results on Feb 17, before the market opens. In the last quarter, the company reported improvement in both top line and bottom line.

Barnes Group, Inc. Price and EPS Surprise

Barnes Group, Inc. Price and EPS Surprise | Barnes Group, Inc. Quote

The company posted better-than-expected results in two of the four trailing quarters, while recording in-line results in one and lagging in the other. Average earnings surprise was a positive 0.92%.

In the last three months, the company's shares increased 10.9%, outperforming the gain of 7.2% recorded by the Zacks categorized Machinery General Industrial sub industry.

Weak industrial activities as well as global economic uncertainties are likely to adversely impact Barnes Group's performances and its overall profitability in the quarter.

The combination of Barne Group's Zacks Rank #4 (Sell) and an Earnings ESP of 0.00% makes an earnings beat unlikely this quarter. Note that we caution against stocks with a Zacks Rank #4 or #5 (Sell-rated stocks) going into an earnings announcement. (Read more: Is Barnes Group's Q4 Earnings Likely to Disappoint? )

Pollution control company, Calgon CarbonCCC is expected to release fourth quarter 2016 results around Feb 17. The company reported a decline in both revenues and earnings in the third quarter.

Calgon Carbon Corporation Price and EPS Surprise

Calgon Carbon Corporation Price and EPS Surprise | Calgon Carbon Corporation Quote

The company has a record of negative earnings surprises. Calgon Carbon has missed the Zacks Consensus Estimate in the trailing four quarters, with an average negative earnings surprise of 14.10%.

In the last three months, Calgon Carbon has underperformed the Zacks Categorized Pollution Control Equipment and Services sub industry. The stock has dipped 4% while the sub industry gained 0.3%.

While Calgon Carbon is seeing weakness in global industrial end markets, the company remains focused on strategic measures such as cost reduction actions and executing on opportunities in other areas of its diverse end markets that are benefiting from favorable market dynamics. Though Calgon Carbon's Zacks Rank #3 increases the predictive power of the ESP, its 0.00% ESP makes surprise prediction difficult. You can see the complete list of today's Zacks #1 Rank stocks here .

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Deere & Company (DE): Free Stock Analysis Report

Barnes Group, Inc. (B): Free Stock Analysis Report

Calgon Carbon Corporation (CCC): Free Stock Analysis Report

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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.

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