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Industrial Stocks' Aug 5 Q2 Earnings Roster: BLL, AXON & More

·7 min read

The Industrial Products sector’s results for the April-June quarter might reflect the benefits of resumption of the global economic activities and reopening of businesses, which led to a pick-up in manufacturing sector activity following the COVID-19 induced lull. Per the Federal Reserve, total industrial production rose at an annual rate of 5.5% in the second quarter. Manufacturing output increased at an annual rate of 3.7%. This is expected show on the quarterly results of the industry participants.

Per the latest Earnings Trends report, the Industrial Products sector’s earnings for the April-June quarter is expected to log growth of 67.9%, reflecting the ongoing expansion in manufacturing activity and improvement in order levels. Nevertheless, it remains to be seen how the industry players have been countering the impact of inflated input costs, labor challenges and supply chain headwinds that are currently being witnessed across the board.

So far, 42.3% of the S&P participants in the Industrial Products sector have reported second-quarter 2021 results and put up growth of 62.6% in earnings on the scoreboard.

Strong demand from the U.S. residential construction sector and the ongoing recovery in the non-residential construction sector may have favored the industry participants in the quarter to be reported. The sector players engaged in packaging for food, medicines, home and personal-care products might have benefited from higher demand amid the pandemic. Commodity prices have improved through the quarter, which are expected to have led to improved order levels for companies dealing in mining equipment.

Supply chain headwinds along with inflated costs for raw materials and freight services are likely to have weighed on the industry participants’ margins in the quarter under review. However, many of the sector participants have been focusing on cost cutting measures and making efforts to improve productivity and efficiency, which may have offset the abovementioned impacts.

It will be interesting to see how some of the companies belonging to this sector fare when they release quarterly numbers on Aug 5.

Ball Corporation BLL is scheduled to report second-quarter 2021 results before the opening bell. The company has surpassed the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average surprise being 10.2%.

Ball Corporation Price and EPS Surprise

Ball Corporation Price and EPS Surprise
Ball Corporation Price and EPS Surprise

Ball Corporation price-eps-surprise | Ball Corporation Quote

Per the Zacks quantitative model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can see the complete list of today’s Zacks #1 Rank stocks here.

Our proven model does not conclusively predict an earnings beat for Ball Corp this time around. The company has an Earnings ESP of -0.95% and a Zacks Rank of 3. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

Ball Corp has been experiencing elevated demand, courtesy of strong global beverage-can demand lately as consumers now prefer cans over glass and plastic. Demand for aluminum packaging products and services to consumer-oriented end-markets, such as food and beverages, household and healthcare has also been robust on increased at-home consumption amid the pandemic. These factors, along with robust backlog at its Aerospace segment, are expected to have contributed to its revenue growth in the second quarter. Elevated freight costs and higher-than-expected start-up costs due to the ongoing capacity-expansion efforts may have impacted margins in the quarter. (Read more: Ball Corp to Report Q2 Earnings: What's in the Cards?)

The Zacks Consensus Estimate for Ball Corp’s second-quarter 2021 earnings is currently pegged at 83 cents, which indicates an improvement 27.7% from the year-ago quarter. The estimate has remained stable over the past 30 days.

Axon Enterprise, Inc. AXON is scheduled to report second-quarter 2021 results after the market close. The company beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters and missed once, the average surprise being 54.8%.

Axon Enterprise, Inc Price and EPS Surprise

Axon Enterprise, Inc Price and EPS Surprise
Axon Enterprise, Inc Price and EPS Surprise

Axon Enterprise, Inc price-eps-surprise | Axon Enterprise, Inc Quote

Axon currently has an Earnings ESP of +9.93% and a Zacks Rank #4 (Sell).

The company’s second-quarter results are likely to reflect higher demand for TASER devices and software-heavy body camera bundles. The company’s new products bookings have been growing, driven by productivity and real-time operations software solutions, VR training and transcription services. It has been expanding into new markets, as evident from rise in new market bookings lately.

The Zacks Consensus Estimate for the company’s second-quarter earnings has remained unchanged at 22 cents over the past 30 days. It suggests a substantial improvement from a loss of 1 cent in the prior-year quarter.

Terminix Global Holdings, Inc. TMX is scheduled to release second-quarter 2021 results, before market open. The company has surpassed the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average surprise being 51.4%.

Terminix Global Holdings, Inc. Price and EPS Surprise

Terminix Global Holdings, Inc. Price and EPS Surprise
Terminix Global Holdings, Inc. Price and EPS Surprise

Terminix Global Holdings, Inc. price-eps-surprise | Terminix Global Holdings, Inc. Quote

Terminix currently has an Earnings ESP of 0.00% and a Zacks Rank of 3.

The company’s second-quarter results are likely to reflect improvements in customer retention, pricing realization and strong unit growth in its termite business. Revenue growth, and benefits from initiatives to simplify its back-office structure as a more focused pest management company might have negated the impact of higher labor and material costs. This, in turn, might have favored second-quarter margin performance.

The Zacks Consensus Estimate for Terminix’s second-quarter earnings is currently pegged at 48 cents, which suggests growth of 20% from the year-ago quarter. The estimate has remained unchanged over the past 30 days.

Resideo Technologies, Inc. REZI is slated to release second-quarter 2021 results, after market close. The company beat the Zacks Consensus Estimate for earnings in two of the trailing four quarters and missed twice, the average surprise being 165.5%.

Resideo Technologies, Inc. Price and EPS Surprise

Resideo Technologies, Inc. Price and EPS Surprise
Resideo Technologies, Inc. Price and EPS Surprise

Resideo Technologies, Inc. price-eps-surprise | Resideo Technologies, Inc. Quote

Resideo currently has an Earnings ESP of -12.90% and a Zacks Rank of 3.

The company’s second-quarter top-line performance is likely to reflect a strong residential demand environment. ADI Global Distribution segmenthas been witnessing improved activity in commercial markets and growth in e-commerce sales. While the company’s engineering and productivity improvements are likely to have contributed to margins in the quarter, higher freight costs and supply constraints of certain components (resins, microchips) may have somewhat negated these gains.

The Zacks Consensus Estimate for Resideo’s second-quarter earnings is currently pegged at 31 cents, which suggests a jump of 82% from the year-ago quarter. The estimate has remained stable over the past 30 days.

Alarm.com Holdings, Inc. ALRM is scheduled to release second-quarter 2021 results, after market close. The company beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average surprise being 46.30%.

Alarm.com Holdings, Inc. Price and EPS Surprise

Alarm.com Holdings, Inc. Price and EPS Surprise
Alarm.com Holdings, Inc. Price and EPS Surprise

Alarm.com Holdings, Inc. price-eps-surprise | Alarm.com Holdings, Inc. Quote

Alarm.com currently has an Earnings ESP of 0.00% and a Zacks Rank of 3.

The company’s second-quarter results are likely to reflect the impact of new account creation and growing adoption of advanced services such as video and video analytics due to the ongoing momentum in the U.S. and Canadian residential markets. The company’s international business, however, continues to grapple with pandemic-induced adversities.

The Zacks Consensus Estimate for the company’s second-quarter earnings has remained unchanged at 38 cents over the past 30 days. The consensus mark suggests a 7% decline from the prior-year quarter.


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Ball Corporation (BLL) : Free Stock Analysis Report

Terminix Global Holdings, Inc. (TMX) : Free Stock Analysis Report

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Axon Enterprise, Inc (AXON) : Free Stock Analysis Report

Resideo Technologies, Inc. (REZI) : Free Stock Analysis Report

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