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Industrial Stocks' Feb 8 Q4 Earnings Roster: AGCO, CCK & More

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·6 min read
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The Industrial Products sector’s results for the final quarter of 2021 are expected to reflect strong demand levels. However, the ongoing supply chain, labor, freight and logistics challenges in the industry might have impaired their ability to meet these demand levels. Inflated material, freight and labor costs are likely to have put margins under pressure in the quarter under review.

Per the latest Earnings Trend report, 57.7% of the S&P 500 companies in the Zacks Industrial Products sector reported results for the October-December quarter. These companies have recorded growth of 11.8% in earnings on the scoreboard on the back of 13.3% higher revenues. Taking into account the rest of the companies that are yet to disclose their numbers, the Industrial Products sector’s earnings for the fourth quarter are anticipated to grow 3.5% and revenues are expected to be up 9%.

Per the Federal Reserve, total industrial production rose at an annual rate of 4% in the fourth quarter. Manufacturing output increased at an annual rate of 5%. This is expected show on the quarterly results of the industry participants. Strong demand from the U.S. residential construction sector and the ongoing recovery in the non-residential construction sector are expected have favored the companies that cater to these sectors. The players engaged in packaging for food, medicines, home and personal care products continue to benefit from high demand triggered by the pandemic. Overall commodity prices have improved through the quarter, which is expected to have driven improved order levels for companies dealing in mining equipment. Overall increasing manufacturing activity might have translated into improved order levels over the course of the fourth quarter for the companies in the sector.

Meanwhile, the COVID-19 pandemic has impacted factory productivity and the supply chain. These supply chain and capacity challenges have led to higher transportation and labor costs due to the need to deliver finished goods to customers in a timely manner. Restrictions or disruptions of transportation, resulted in higher costs and delays, both for obtaining raw materials and components, and shipping finished goods to customers. The sector players have been witnessing tight labor availability for some positions and incurring higher labor costs to attract staff in its manufacturing operations to meet the escalating demand. COVID-19 related worker absenteeism also remains an issue. Elevated raw material costs remained a headwind through the quarter. However, several of the sector participants have been focusing on pricing actions, cost-cutting measures, efforts to improve productivity and efficiency and diversification of supplier base, which may have offset the abovementioned impacts.

Sneek Peek at Feb 8 Releases

AGCO Corporation AGCO is scheduled to report fourth-quarter 2021 results before the opening bell. The company beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average surprise being 47.5%.

AGCO Corporation Price and EPS Surprise

AGCO Corporation Price and EPS Surprise
AGCO Corporation Price and EPS Surprise

AGCO Corporation price-eps-surprise | AGCO 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 conclusively predicts an earnings beat for AGCO this time around. AGCO currently has an Earnings ESP of +13.66% and a Zacks Rank #2. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

AGCO’s fourth-quarter results are likely to reflect improved sales volumes and pricing. Improved agricultural commodity prices through the quartier might have boosted demand for the company’s equipment. Despite the impact of material cost inflation, labor shortage and supply chain headwinds, the company’s margins in the to-be-reported quarter are expected to have benefited from higher sales and production volumes, and its margin-improvement plans.

The Zacks Consensus Estimate for AGCO’s fourth-quarter earnings has gone down 1% over the past 30 days to $1.72. It suggests an 11.7% improvement from the prior-year quarter.

Crown Holdings CCK is slated to report fourth-quarter 2021 results after the market close. The company has surpassed the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average surprise being 17.4%.

Crown Holdings, Inc. Price and EPS Surprise

Crown Holdings, Inc. Price and EPS Surprise
Crown Holdings, Inc. Price and EPS Surprise

Crown Holdings, Inc. price-eps-surprise | Crown Holdings, Inc. Quote

Crown Holdings has an Earnings ESP of +0.08% and a Zacks Rank #3.

Crown Holdings has been experiencing elevated demand, courtesy of strong global beverage-can demand lately as consumers now prefer cans over other packaging formats. The Transit Packaging segment has been gaining lately on the surge in overall industrial activity. These factor are expected to have contributed to its revenue growth in the fourth quarter. Elevated input and freight costs and supply chain issues may have impacted the company’s margins in the quarter.

The Zacks Consensus Estimate for Crown Holdings’ fourth-quarter 2021 earnings is currently pegged at $1.54, which indicates an improvement of 2.7% from the year-ago quarter. The estimate has remained unchanged over the past 30 days.

ScanSource SCSC is scheduled to release second-quarter fiscal 2022 results, after the market close. The company has surpassed the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average surprise being 34.6%.

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

The company’s second-quarter fiscal 2022 results are likely to reflect strong demand, courtesy of digital acceleration and technology refresh initiatives. Revenues in the Specialty Technology Solutions segment are likely to have gained from broad-based growth across technologies. Sales in Modern Communications & Cloud segment are expected to reflect accelerated cloud and subscription adoption. The company’s margins might reflect higher sales levels and its efforts to lower costs and improve operational performance.

The Zacks Consensus Estimate for ScanSource’s fiscal second-quarter earnings is currently pegged at 83 cents, which suggests a 27.7% increase from the year-ago quarter. The estimate has remained stable over the past 30 days.

Trinseo TSE is scheduled to report fourth-quarter 2021 results after the market close. The company has surpassed the Zacks Consensus Estimate for earnings in three of the trailing four quarters and missed once, the average surprise being 14.1%.

Trinseo PLC Price and EPS Surprise

Trinseo PLC Price and EPS Surprise
Trinseo PLC Price and EPS Surprise

Trinseo PLC price-eps-surprise | Trinseo PLC Quote

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

The company’s fourth-quarter results are likely to reflect robust demand and recent acquisitions. However, outage at the Ternuezen styrene plant is expected to have an impact on the company’s margins in the quarter to be reported. The surge in European natural gas prices is likely to have added to the pressure on margins. Even though the company implemented pricing actions in the fourth quarter, it was not able to outpace the unprecedented increase in natural gas prices.

The Zacks Consensus Estimate for Trinseo’s fourth-quarter 2021 earnings is currently pegged at $1.34, which indicates a 27% decline from the year-ago quarter. The estimate has moved up 60% over the past 30 days.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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AGCO Corporation (AGCO) : Free Stock Analysis Report

Crown Holdings, Inc. (CCK) : Free Stock Analysis Report

ScanSource, Inc. (SCSC) : Free Stock Analysis Report

Trinseo PLC (TSE) : Free Stock Analysis Report

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