We now have a clear picture of the Q3 earnings season, with results from 423 of the S&P 500 Index members already on board (as on Nov 4). Earnings of these companies (accounting for 87.1% of the index’s total market capitalization) are up 3.6% year over year on 2.4% higher revenues.
Of the companies that have reported results so far, 72.8% have surpassed earnings estimates, with 55.1% coming ahead of revenue estimates.
After five consecutive quarters of earnings declines for the S&P 500 index, we are finally seeing a marginally positive overall growth trend for the index. On the whole, our latest data projects that the earnings for the S&P 500 companies are now on track to grow 3% from the year-ago period on 1.5% higher revenues. This is comparable to a decline of 2.9%, expected a few weeks ago. (For more details, read our latest Earnings Preview article).
The industrial products sector is one of the sectors expected to chart positive earnings growth this quarter. Its earnings are on track to grow 7.2% in the quarter on 0.3% lower sales compared with last year. Of the companies that have already reported within the sector, 90% have surpassed EPS estimates and 20% have topped revenues expectations.
Let’s have a look at how some companies within the sector, like EnerSys ENS, TASER International Inc. TASR and Multi-Color Corp. LABL are poised, ahead of their scheduled announcements on Nov 9.
EnerSys is a global leader in stored energy solutions for industrial applications. The company has had a decent earnings history in recent times, having beaten estimates thrice over the trailing four quarters for an average positive earnings surprise of 2.2%. In the last reported quarter, the company had beat earnings estimates by 3.6%.
However, our proven model does not conclusively show that the company is likely to beat on earnings in the to-be-reported quarter. EnerSys presently has an Earnings ESP of 0.00% and a Zacks Rank #3 (Hold). The Zacks Consensus Estimate for the quarter is pegged at $1.08.
ENERSYS INC Price, Consensus and EPS Surprise
ENERSYS INC Price, Consensus and EPS Surprise | ENERSYS INC Quote
Despite a favorable rank, the company’s 0.00% Earnings ESP makes surprise prediction inconclusive. Note that stocks with a Zacks Rank #1 (Strong Buy), or 2 (Buy) or 3 have a significantly higher chance of beating estimates. You can see the complete list of today’s Zacks #1 Rank stocks here.
TASER International develops, assembles and markets less-lethal, conducted energy weapons primarily for use in the law enforcement and corrections market.
TASER International has a striking earnings history, having registered three strong earnings beats over the trailing four quarters, for a remarkable average positive surprise of 74%. In the last reported quarter, the company had trumped earnings estimates by a whopping 133.3%.
TASER INTL INC Price, Consensus and EPS Surprise
TASER INTL INC Price, Consensus and EPS Surprise | TASER INTL INC Quote
Our proven model does not conclusively show that TASER International is likely to beat on earnings in the quarter to be reported. The company has an Earnings ESP of +20.00% and a Zacks Rank #4 (Sell). Despite having a positive Earnings ESP, the company’s Zacks Rank #4 makes surprise prediction inconclusive. The Zacks Consensus Estimate for the quarter is pegged at 5 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Multi-Color Corp. is one of the largest producers of printed labels for branded consumer products in the U.S. The company has had a rough earnings history in recent times, having missed estimates thrice in the four trailing quarters for an average negative surprise of 5.1%. Last quarter, it beat estimates by 5.6%.
MULTI-COLOR Price, Consensus and EPS Surprise
MULTI-COLOR Price, Consensus and EPS Surprise | MULTI-COLOR Quote
Our proven model does not conclusively show that Multi-Color Corp. is likely to beat on earnings in the quarter. The company has an Earnings ESP of 0.00% and a Zacks Rank #3. The Zacks Consensus Estimate for the quarter is pegged at 97 cents. The company’s 0.00% ESP makes surprise prediction inconclusive.
Keep an eye on our full earnings articles to see how these players finally fared in the quarter.
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