Industrial Stocks Earnings Roster for Aug 3: BLL, PH, BERY
For the second quarter, industrial production rose at an annual rate of 4.7%, driven by strong increases in mining and utilities. Month wise, U.S. industrial production logged growth of 0.8% in April compared with March, followed by 0.1% in May and 0.4% in June. This is a marked improvement from the annual rate of 1.5 % in first-quarter 2017. The upbeat numbers from one of the leading economic indicators for the industrial stocks signals improved performance in the second quarter.
Government policies encouraging better trade relations along with increase in infrastructural investments, job creation and high consumer-end demand will support growth. Trump administration’s plan to invest considerably in the country’s infrastructure, if implemented, will boost growth of the industrial sector.
In the past one year, the industrial products sector has clocked a gain of 21.6%, outperforming the S&P 500’s climb of 16.5%. The U.S. factory activity seems to have overcome its previous sluggishness driven by steady job creation, a stable dollar and strong overseas demand.
The industrial products sector (one of the 16 broad Zacks sectors) is thus currently enjoying a Zacks Sector Rank of 2, just a pace behind the Auto, Tires and Trucks sector. This can be attributed to the fact that the majority of the 215 industries within this sector has performed well lately and are poised to take the momentum ahead in the coming quarters.
So far 59.1% of the S&P participants in the Industrial Products sector have reported second-quarter results. These companies have put up a 25.5% growth in earnings in second-quarter 2017. Taking into account all of the companies that are yet to report, the sector is forecasted to log a 17.6% growth in earnings in the second quarter. The Industrial Products sector is one of the five sectors projected to log a double-digit growth in the second quarter. (Read more: Q2 Earnings Season Past the Halfway Mark)
It will be interesting to see how some of the industrial stocks fare when they release June ending quarter numbers on Aug 3. Apart from beats and misses, focus will also be on their outlook.
Leading supplier of metal and plastic packaging to the beverage and food industries, Ball Corporation BLL is scheduled to report second-quarter fiscal 2017 results before the opening bell. The company registered a year-over-year improvement in both top line and bottom line in the last reported quarter.
In the preceding quarter, the company posted a positive earnings surprise of 11.76%. Ball Corporation has outpaced the Zacks Consensus Estimate in the trailing four quarters, leading to an average positive earnings surprise of 5.61%.
Ball Corporation Price and EPS Surprise
Ball Corporation Price and EPS Surprise | Ball Corporation Quote
Our proven model shows that Ball Corporation is likely to beat estimates this quarter as it has the right combination of two key elements. Per our model, a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or at least 3 (Hold) for this to happen. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
The combination of Ball Corporation’s Zacks Rank #3 and an Earnings ESP of 1.82% makes an earnings beat likely this quarter. Note that we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into an earnings announcement. (Read more: Ball Corporation Q2 Earnings: Is a Beat in the Offing?)
Parker-Hannifin Corporation PH, a leading worldwide full-line manufacturer of motion control products, including fluid power systems, electro-mechanical controls and related components is scheduled to report fourth-quarter fiscal 2017 results before the opening bell. In the last reported quarter, the company had delivered year-over-year increase in both revenues and earnings.
Also in the last quarter, Parker-Hannifin delivered a positive earnings surprise of 13.4%. Parker-Hannifin boasts an average positive surprise of approximately 14.9% in the trailing four quarters.
Parker-Hannifin Corporation Price and EPS Surprise
Parker-Hannifin Corporation Price and EPS Surprise | Parker-Hannifin Corporation Quote
The favorable combination of Parker-Hannifin’s +0.87% ESP and a Zacks Rank #2 make us reasonably confident of a positive earnings beat this quarter. (Read more: Can Parker-Hannifin Maintain its Earnings Streak in Q4?).
Berry Global Group, Inc. BERY, a leading global manufacturer of and marketer of innovative engineered materials, non-woven specialty materials and consumer packaging, is scheduled to report third-fiscal 2017 quarter results. In the second quarter, the company reported year-over-year increase in both revenues and earnings.
Berry Global Group delivered a positive earnings surprise of 17.91% in the last quarter. The company has surpassed the Zacks Consensus Estimate in all the four trailing quarters and boasts an average positive surprise of approximately 22.36%.
The favorable combination of Berry Global Group’s Zacks Rank #3 and +1.21% ESP makes us reasonably confident of a positive earnings beat this quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
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