Markets

Industrial Stocks' Q4 Earnings on Feb 8: ROLL, IRBT & More

The fourth-quarter 2016 earnings season has been satisfactory so far, with 275 S&P 500 companies having reported results as of Feb 3, 2017. Notably, 68% of them have surpassed earnings estimates, while 54.5% beat on revenues.

We notice that the top- and bottom-line growth figures are on track to be the highest in the last eight quarters.

Pro-growth policies of President Donald Trump, such as slashing tax rates and raising government spending, would likely enhance infrastructure and industrial spending in the U.S. This, along with the recovering Chinese economy, is anticipated to bolster sales and profitability of industrial products stocks.

Nevertheless, it's still early to draw conclusions.

Here, we briefly discuss the sectors' earnings trend for the quarter ended Dec 2016.

Our latest Earnings Preview article (released on Feb 3, 2017) states that roughly 72.7% of the Industrial stocks in the S&P 500 Index have reported results for the quarter, recording an 11.8% rise in earnings and an 8.7% upside in revenues on a year-over-year basis.

However, we predict that earnings of all the industrial stocks in the S&P 500 Group will increase 4% from the year-ago quarter on 4.1% higher revenues.

What Awaits These 4 Industrial Stocks?

RBC Bearings IncorporatedROLL is slated to report third-quarter fiscal 2017 (ended Dec 31, 2016) earnings on Feb 8, before the market opens. The company's average positive earnings surprise for the last four quarters is 1.60%. Our proven model does not conclusively show that RBC Bearings will beat estimates this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or at least 3 (Hold) for an earnings beat. That is not the case here as we will see below.

Although the company's Zacks Rank #1 increases the predictive power of ESP, its Earnings ESP of 0.00% makes surprise prediction difficult. The Most Accurate estimate for the stock is in line with the Zacks Consensus Estimate of 71 cents. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .

Over the last seven days, the Zacks Consensus Estimate for the stock remained unchanged at 71 cents for the quarter to be reported.

RBC Bearings Incorporated Price and EPS Surprise

RBC Bearings Incorporated Price and EPS Surprise | RBC Bearings Incorporated Quote

iRobot CorporationIRBT is scheduled to report fourth-quarter 2016 and full-year figures after the opening bell. The company's average positive earnings surprise for the last four quarters is 172.35%. However, our proven model does not conclusively show that iRobot is likely to beat earnings this quarter. Though the company has an Earnings ESP of +2.56% (the Most Accurate estimate of 40 cents is a penny higher than the Zacks Consensus Estimate of 39 cents), it has a Zacks Rank #5 (Strong Sell).

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

The company is poised to grow on the back of an improving home robotics business, sound restructuring moves and lucrative product innovations. However, headwinds such as a stronger U.S. dollar and stiff industry rivalry might hurt results in the quarter under review. (Read more: iRobot Q4 Earnings: What's in Store for the Stock? )

Over the last seven days, the Zacks Consensus Estimate for the stock remained unchanged at 39 cents for the quarter to be reported.

iRobot Corporation Price and EPS Surprise

iRobot Corporation Price and EPS Surprise | iRobot Corporation Quote

EnerSysENS is set to report third-quarter fiscal 2017 (ended Dec 31, 2016) results after the market opens. The company's average positive earnings surprise for the last four quarters is 3.01%. However, we cannot conclusively state that the company would beat on earnings this quarter. The company has an Earnings ESP of -0.89% (the Most Accurate estimate of $1.12 is lower than the Zacks Consensus Estimate of $1.13). This lowers our predictive power even though the company has a Zacks Rank #3. You can see the complete list of today's Zacks #1 Rank stocks here .

Over the last seven days, the Zacks Consensus Estimate for the stock remained unchanged at $1.13 for the to-be-reported quarter.

Enersys Price and EPS Surprise

Enersys Price and EPS Surprise | Enersys Quote

SPX FLOW, Inc.FLOW is scheduled to report fourth-quarter 2016 and full-year results before the market opens. The company's average positive earnings surprise for the trailing four quarters is 73.59%. However, we cannot conclusively state that the company would beat earnings this quarter as the company has a Zacks Rank #3 and an Earnings ESP of 0.00% (the Most Accurate estimate stands in line with the Zacks Consensus Estimate of 52 cents).

Over the last seven days, the Zacks Consensus Estimate remained unchanged at 52 cents for the quarter to be reported.

SPX FLOW, Inc. Price and EPS Surprise

SPX FLOW, Inc. Price and EPS Surprise | SPX FLOW, Inc. Quote

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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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