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Industrial Stocks Earnings to Watch on Apr 28: SWK, ROK, IR, AVY

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Industrial stocks’ results for the January-March quarter are likely to mirror the impacts of the macro trends like improving manufacturing activities and better trade relations. Also, the pandemic-related uncertainties and healthy demand induced by the same are likely to get reflected on the results of many industrial players/S&P 500 companies (with exposure in the industrial space).

It is worth noting here that the earnings and revenue outlook for the S&P 500 companies for the first quarter of 2021 suggests improvement from the previous quarter. Per the Earnings Trend report released on Apr 21, S&P 500 companies’ earnings and revenues are expected to increase 28.1% and 6.3%, respectively, for the first quarter of 2021. Notably, in the fourth quarter of 2020, the S&P 500 recorded an earnings growth of 3.1% and revenue improvement of 3%.

Results of many industrial players (grouped under the Zacks Industrial Products sector) are awaited in the ongoing and the next week. Notably, 7.7% of industrial products stocks reported their results for the January-March quarter as of Apr 21, 2021. Collectively, earnings of these companies have grown 18.9% and revenues have expanded 5.1% year over year. Both earnings and sales beat were 100%.

Below we discuss key factors that are expected to have contributed to other companies’ performances.

Key Factors for Industrial Stocks

Industrial stocks seemed to have enjoyed healthy operating conditions in the January-March quarter of 2021. Notably, the ISM Purchasing Manager’s Index improved from 60.5% at the end of December 2020 to 64.7% at the end of March 2021. In addition to this, industrial production in the United States reflected an annual increase of 2.5% this January-March quarter.

In addition to the aforementioned factors, the pandemic-induced demand for products and services as well as surging e-commerce businesses seems to have lifted business sentiments for many players in the quarter under review. Promotional efforts on the part of the companies as well as improving trade relations with foreign nations are also expected to have aided performances. For some industry players, highly leveraged balance sheets as well as pandemic woes are anticipated to have been spoilsports.

Per projections as of Apr 21, earnings for the industrial stocks are expected to increase 25% year over year for the January-March quarter of 2021 and revenues are expected to grow 7.8%. Notably, the projections suggest improvements from a 16.8% increase in earnings and 1.8% growth in revenues recorded in the fourth quarter of 2020.

Stocks to Report January-March Quarter’s Results on Apr 28

Below, we briefly discussed what we expect from the four industrial stocks mentioned below in the upcoming results.

Stanley Black & Decker, Inc. SWK will release first-quarter 2021 results, before market open.

The industrial tool maker reported better-than-expected results in the last four quarters. The company has a trailing four-quarter earnings surprise of 12.7%, on average.

Stanley Black & Decker, Inc. Price, Consensus and EPS Surprise
Stanley Black & Decker, Inc. Price, Consensus and EPS Surprise

Our proven model conclusively predicts an earnings beat for Stanley Black this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of beating estimates. That is exactly the case with Stanley Black. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

You can see the complete list of today’s Zacks #1 Rank stocks here.

Currently, Stanley Black has a Zacks Rank #3 and an Earnings ESP of +3.39%. The company has likely gained from healthy businesses in the Tools & Storage and Security segments. Also, an improvement in manufacturing activities is likely to have aided. (For further information please read: Stanley Black to Report Q1 Results: Is a Beat in Store?)

The Zacks Consensus Estimate for the company’s quarterly earnings has moved up 3.2% to $2.56 per share in the past 60 days.

Rockwell Automation, Inc. ROK is expected to release second-quarter fiscal 2021 results, before market open.

In the last four quarters, the company recorded better-than-expected results. It has a trailing four-quarter earnings surprise of +18.70%, on average.

Rockwell Automation, Inc. Price, Consensus and EPS Surprise
Rockwell Automation, Inc. Price, Consensus and EPS Surprise

Presently, the company has a Zacks Rank #3 and an Earnings ESP of +1.10%. Its performance is expected to have benefited from cost-saving actions and healthy demand for products in various end markets like food and beverages. (For further information please read: What's in the Cards for Rockwell Automation's Q2 Earnings?)

In the past 60 days, the Zacks Consensus Estimate for the company’s quarterly earnings has declined 0.5% to $2.15 per share.

Ingersoll Rand Inc. IR will report results for the first quarter of 2021, after market close.

It recorded better-than-expected results in three of the last four quarters, while lagging estimates once. The company has a trailing four-quarter earnings surprise of +19.74%, on average.

Ingersoll Rand Inc. Price, Consensus and EPS Surprise
Ingersoll Rand Inc. Price, Consensus and EPS Surprise

Presently, Ingersoll has a Zacks Rank #3 and an Earnings ESP of -0.84%. Woes related to stake disposal in the High Pressure Solutions segment are expected to have hurt its performance. However, benefits from the exposure in various end markets, acquired assets, cost-saving actions and solid product offerings are anticipated to have aided the company. (For further information please read: Ingersoll to Report Q1 Earnings: What's in the Cards?)

In the past 60 days, the Zacks Consensus Estimate for the quarter earnings increased 5.9% to 36 cents per share.

Avery Dennison Corporation AVY will report results for the first quarter of 2021, before market open.

It recorded better-than-expected results in the last four quarters. The company has a trailing four-quarter earnings surprise of +13.18%, on average.

Avery Dennison Corporation Price, Consensus and EPS Surprise
Avery Dennison Corporation Price, Consensus and EPS Surprise

Presently, it has a Zacks Rank #3 and an Earnings ESP of 0.00%. Weakness in the Graphics Solutions business is anticipated to have ailed. However, the company is expected to have gained from restructuring actions, acquired assets, and healthy demand for personal care, food and beverage and other products. (For further information please read: Avery Dennison to Report Q1 Earnings: What to Expect?)

In the past 60 days, the Zacks Consensus Estimate for quarterly earnings has been raised by 2.6% to $2.01 per share.

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Avery Dennison Corporation (AVY) : Free Stock Analysis Report

Rockwell Automation, Inc. (ROK) : Free Stock Analysis Report

Stanley Black & Decker, Inc. (SWK) : Free Stock Analysis Report

Ingersoll Rand Inc. (IR) : Free Stock Analysis Report

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