Machinery Stocks Q2 Earnings Coming Up: GRC, SWK, LECO
With the onset of the Q2 earnings season, investors are waiting to see how the major companies perform.
While estimating the performances of machinery stocks, we note that headwinds like economic sluggishness of major industrial goods’ consumers like China, forex issues and dismal pricing conditions prevailing in energy & mining markets might limit growth.
According to the Zacks Industry classification, the machinery industry is broadly grouped under Industrial Products, one of the 16 Zacks sectors. Per our report dated Jul 15, 2016, earnings for the Industrial Products sector are expected to decline 8.6% in Q2, while revenues will likely fall 5.6%.
Recently, two machinery bigwigs – Graco Inc. GGG and Illinois Tool Works Inc. ITW – reported Q2 results. Graco’s quarterly net income per share of 89 cents missed the Zacks Consensus Estimate by 10.1%. Illinois Tool Works, on the other hand, managed to keep its earnings streak alive in the quarter. The company’s earnings of $1.46 per share came in above the Zacks Consensus Estimate of $1.40.
With more and more companies slated to report their Q2 results soon, let’s take a look at how these three machinery stocks might fare.
What Awaits These Machinery Giants?
Gorman-Rupp Co. GRC is expected to report Q2 results on Jul 22. In the last four quarters, the company reported a negative average earnings surprise of 1.89%. Our proven model does not conclusively show that Gorman-Rupp is likely to beat on earnings this quarter. This is because the company’s Earnings ESP (the difference between the Most Accurate estimate and the Zacks Consensus Estimate) is 0.00%. The Zacks Consensus Estimate for the stock is currently pegged at 22 cents per share for Q2. Though the company carries a favorable Zacks Rank #3 (Hold), its 0.00% ESP makes surprise prediction difficult. Over the last 60 days, the Zacks Consensus Estimate for the stock has remained unchanged for Q2.
GORMAN RUPP CO Price and EPS Surprise
GORMAN RUPP CO Price and EPS Surprise | GORMAN RUPP CO Quote
Stanley Black & Decker, Inc. SWK is set to release Q2 results, before the market opens on Jul 22. Stanley Black & Decker carries a Zacks Rank #3 but its Earnings ESP of -0.59% makes surprise predictions inconclusive. The company’s inorganic growth plans, diversified product portfolio, broad clientele, strategic capital allocation policy and operational efficacy are expected to boost financials in the to-be-reported quarter. However, headwinds like economic sluggishness in certain emerging markets, unfavorable foreign currency translation and dismal energy as well a mining market conditions might overshadow the benefits from the aforesaid positives. (Read more: Stanley Black & Decker Q2 Earnings: What's in Store?).
STANLEY B&D INC Price and EPS Surprise
STANLEY B&D INC Price and EPS Surprise | STANLEY B&D INC Quote
Lincoln Electric Holdings Inc. LECO would release Q2 results, before the market opens on Jul 25. In the last four quarters, the company reported a positive average earnings surprise of 2.67%. However, our proven model does not conclusively show that Lincoln Electric is likely to beat on earnings this quarter. This is because it carries a Zacks Rank #4 (Sell) and has an Earnings ESP of -1.21%. Over the last 60 days, the Zacks Consensus Estimate for the stock has declined slightly for Q2.
LINCOLN ELECTRC Price and EPS Surprise
LINCOLN ELECTRC Price and EPS Surprise | LINCOLN ELECTRC Quote
Don’t miss on our full earnings release articles for these three machinery stocks, as the actual results might hold some surprises!
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LINCOLN ELECTRC (LECO): Free Stock Analysis Report
STANLEY B&D INC (SWK): Free Stock Analysis Report
GRACO INC (GGG): Free Stock Analysis Report
ILL TOOL WORKS (ITW): Free Stock Analysis Report
GORMAN RUPP CO (GRC): Free Stock Analysis Report
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