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Peek in Industrial Stocks Earnings on Aug 4: ROLL, PH & More

With the earnings season in full swing, investors are waiting to see how the major companies perform.

While estimating the performances of industrial stocks, we note that headwinds like economic sluggishness of major industrial goods' consumers like China, forex issues and dismal pricing conditions in energy & mining markets might limit growth.

According to the Zacks Industry classification, the industrial stocks are broadly grouped under Industrial Products, one of the 16 Zacks sectors. Per our latest Earnings Preview article, this industry is likely to underperform this earnings season.

In fact, our report dated Jul 29, 2016 indicates that overall earnings for the sector are expected to decrease 5.1% year over year in second-quarter 2016, while revenues are expected to fall 5.8%. Notably, the sector had witnessed a decline of 22.2% and 8% in earnings and revenues, respectively, in the first quarter.

Recently, two metal fabrication stocks (categorized under industrial products sector) - MRC Global Inc.MRC and Northwest Pipe Co.NWPX - reported Q2 results. MRC Global's diluted loss of 24 cents per share was wider than the Zacks Consensus Estimated loss of 14 cents. On the other hand, Northwest Pipe's quarterly loss of 65 cents per share was narrower than the Zacks Consensus Estimated loss of 76 cents.

With more and more companies slated to report their quarterly results, let's take a look at how these four industrial stocks might fare.

What Awaits These Industrial Stocks?

Parker-Hannifin CorporationPH is slated to report fourth-quarter fiscal 2016 results on Aug 4, before the opening bell. In the last four quarters, the company reported a positive average earnings surprise of 3.59%. However, our proven model does not conclusively show that the company is likely to beat on earnings in the to-be-reported quarter. This is because it carries a Zacks Rank #4 (Sell) and has a negative Earnings ESP (the difference between the Most Accurate estimate and the Zacks Consensus Estimate) of 3.39%. Note that we caution against Sell-rated stocks (Zacks Rank #4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

PARKER HANNIFIN Price and EPS Surprise

PARKER HANNIFIN Price and EPS Surprise | PARKER HANNIFIN Quote

Prolonged weakness of variable natural resources market and economic slowdown in several emerging markets are likely to hurt the company's revenues and margins. Appreciation of the U.S. dollar is another headwind. (Read More: Parker-Hannifin Q4 Earnings: Disappointment in Store? ).

AGCO CorporationAGCO is set to report second-quarter 2016 results, before the market opens on Aug 4. In the last four quarters, the company reported a positive average earnings surprise of 64.81%. However, our proven model does not conclusively show that AGCO Corporation is likely to beat on earnings this quarter. This is because the company's Earnings ESP is 0.00%. The Zacks Consensus Estimate for the stock is pegged at 90 cents per share for the second quarter, over the last 60 days. The company carries a Zacks Rank #3 (Hold). Though a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 increase the predictive power of ESP, a 0.00% Earnings ESP makes surprise prediction difficult.

AGCO CORP Price and EPS Surprise

AGCO CORP Price and EPS Surprise | AGCO CORP Quote

RBC Bearings Inc.ROLL will report first-quarter fiscal 2017 results on Aug 4, before the opening bell. In the last four quarters, the company reported a positive average earnings surprise of 4.34%. However, our proven model does not conclusively show that RBC Bearings is likely to beat on earnings this quarter. This is because the company's Earnings ESP is 0.00%. The Zacks Consensus Estimate for the stock, over the last 60 days, is pegged at 78 cents per share for the fiscal first quarter. The company carries a favorable Zacks Rank #3 but an Earnings ESP of 0.00% complicates surprise prediction.

RBC BEARINGS Price and EPS Surprise

RBC BEARINGS Price and EPS Surprise | RBC BEARINGS Quote

Alamo Group, Inc.ALG is set to report its second-quarter 2016 results on Aug 4, after the market closes . In the last four quarters, the company reported a negative average earnings surprise of 4.97%. However, our proven model does not conclusively show that Alamo Group is likely to beat on earnings this quarter. This is because the company's Earnings ESP is 0.00%. The Zacks Consensus Estimate for the stock is pegged at $1.01 per share for the second quarter, over the last 60 days. The company carries a favorable Zacks Rank #3 but an Earnings ESP of 0.00% makes surprise prediction difficult.

ALAMO GROUP INC Price and EPS Surprise

ALAMO GROUP INC Price and EPS Surprise | ALAMO GROUP INC Quote

Don't miss on our full earnings release articles for these four industrial stocks, as the actual results might hold some surprises!

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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

AGCO CORP (AGCO): Free Stock Analysis Report

ALAMO GROUP INC (ALG): Free Stock Analysis Report

PARKER HANNIFIN (PH): Free Stock Analysis Report

NORTHWEST PIPE (NWPX): Free Stock Analysis Report

RBC BEARINGS (ROLL): Free Stock Analysis Report

MRC GLOBAL INC (MRC): 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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