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Milacron Holdings (MCRN) Q3 Earnings: What's in Store?

Milacron Holdings Corp.MCRN is set to release third-quarter 2015 results before the opening bell on Nov 6, 2015.

Cincinnati, OH-based Milacron Holdings makes engineered and customized systems within the plastic technology and processing industry in North America, Europe, Asia, and internationally. Its common stock began trading on the NYSE on Jun 25, 2015 under the ticker symbol "MCRN".

In the last quarter, the company delivered a positive earnings surprise of 48.39%. Let's see how things are shaping up for this announcement.

Factors to Consider

Milacron Holdings' impressive organic sales growth profile, cost cutting efforts and balance sheet deleveraging will ensure growth. However, risks regarding operational execution as a public company, and the current challenging demand environment persist.

Although Milacron Holdings caters to diverse end-markets, demand will continue to be affected by cyclical trends in client capital expenditures, industrial production and construction activity. Further, free cash flow will be constrained by higher working capital needs and the capital investment required for restructuring its European manufacturing footprint.

Earnings Whispers

Our proven model does not conclusively show that Milacron Holdings will beat estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) for this to happen. This is not the case here as you will see below.

Zacks ESP: Milacron Holdings' Earnings ESP is 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at 41 cents.

Zacks Rank: Milacron Holdings' Zacks Rank #4 (Sell), when combined with a 0.00% ESP, makes surprise prediction difficult.

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

Stocks That Warrant a Look

Here are some stocks in the industrial products space that you may want to consider, as our model shows they have the right combination of elements to post an earnings beat this quarter:

Calgon Carbon Corporation CCC has an Earnings ESP of +8.00% and a Zacks Rank #3.

HD Supply Holdings, Inc. HDS has an Earnings ESP of +4.55% and a Zacks Rank #2.

Beacon Roofing Supply, Inc. BECN has an Earnings ESP of +1.45% and a Zacks Rank #3.

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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

CALGON CARBON (CCC): Free Stock Analysis Report

BEACON ROOFING (BECN): Free Stock Analysis Report

HD SUPPLY HLDGS (HDS): Free Stock Analysis Report

MILACRON HLDGS (MCRN): 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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