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Machinery Stocks' Q4 Earnings Slated on Feb 15: MFS & NPO

In 2016, several factors restricted the growth momentum of the major and developing economies worldwide. These included weak commodity prices, low demand in the energy sector, poor economic conditions in some developed and developing nations, the U.K's decision to exit the European Union, and unfavorable foreign currency movements.

In the U.S., Industrial Machinery was one of the most adversely impacted industries by the uncertainties in the global arena. However, the adverse impacts of the above-mentioned headwinds seem to be ebbing, while the policies of the newly elected President Donald Trump will prove beneficial for machinery stocks.

According to the Zacks Industry classification, the machinery industry is broadly grouped under Industrial Products, one of the 16 broad Zacks sectors. Below we briefly discuss the broader sectors' earnings trend so far in the fourth quarter.

Per the Earnings Preview dated Feb 10, 2017, roughly 90.9% of Industrial stocks that reported their fourth-quarter results as of Feb 10 recorded an 8.4% growth in earnings and 4.7% growth in revenues. Considering the results of all Industrial stocks in the S&P 500 Group, earnings for the sector are predicted to increase 5.1%, while revenues will grow 4.1%.

What's in Store for 2 Machinery Stocks, MFS & NPO for the Fourth Quarter?

Below we discuss briefly the expectations from the two machinery stocks scheduled to report their fourth-quarter 2016 numbers tomorrow:

Manitowoc Foodservice, Inc.MFS : The company (to be renamed as Welbilt, Inc. on Mar 6, 2017) is slated to release its results before the market opens. It recorded better-than-expected results in two of the four trailing quarters, while lagging estimates in one. Average earnings surprise was a positive 14.22%.

Manitowoc Food Service, Inc. Price and EPS Surprise

Manitowoc Food Service, Inc. Price and EPS Surprise | Manitowoc Food Service, Inc. Quote

Our proven model does not conclusively show that Manitowoc Foodservice will beat earnings this quarter as it currently carries a Zacks Rank #3 (Hold) and 0.00% Earnings ESP (the percentage difference between the Most Accurate estimate and the Zacks Consensus Estimate). You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .

For a possible earnings beat, the company should have the right combination of two key ingredients - a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3.

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

Over the last 60 days, the Zacks Consensus Estimate for Manitowoc Foodservice remained stable at 17 cents.

EnPro Industries, Inc.NPO : The company is slated to release its numbers after market close. Its results were above expectations in two of the last four quarters, while lagged estimates in other two. Average earnings surprise was a negative 18.05%.

EnPro Industries Price and EPS Surprise

EnPro Industries Price and EPS Surprise | EnPro Industries Quote

Our proven model does not conclusively show that EnPro Industries will beat earnings this quarter because it currently carries a Zacks Rank #3 and a 0.00% Earnings ESP. You can see the complete list of today's Zacks #1 Rank stocks here .

Over the last 60 days, the Zacks Consensus Estimate for the stock remained stable at 56 cents.

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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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