Advertisement
U.S. markets open in 4 hours 47 minutes
  • S&P Futures

    5,208.75
    -6.00 (-0.12%)
     
  • Dow Futures

    39,221.00
    -2.00 (-0.01%)
     
  • Nasdaq Futures

    18,187.50
    -44.00 (-0.24%)
     
  • Russell 2000 Futures

    2,046.30
    -3.50 (-0.17%)
     
  • Crude Oil

    82.59
    -0.13 (-0.16%)
     
  • Gold

    2,153.80
    -10.50 (-0.49%)
     
  • Silver

    25.02
    -0.24 (-0.95%)
     
  • EUR/USD

    1.0847
    -0.0029 (-0.27%)
     
  • 10-Yr Bond

    4.3400
    0.0000 (0.00%)
     
  • Vix

    14.51
    +0.18 (+1.26%)
     
  • GBP/USD

    1.2687
    -0.0042 (-0.33%)
     
  • USD/JPY

    150.4790
    +1.3810 (+0.93%)
     
  • Bitcoin USD

    63,760.17
    -3,927.74 (-5.80%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • FTSE 100

    7,730.39
    +7.84 (+0.10%)
     
  • Nikkei 225

    40,003.60
    +263.20 (+0.66%)
     

Industrial Stocks Q1 Earnings: Key Forecasts for FBHS & ALLE

The Q1 earnings season kicked off on an impressive note. Nearly 87 S&P 500 members have already released their results, till Apr 20. Total earnings for these companies are up 25% year over year on 10.7% higher revenues, with 82.8% beating earnings estimates and 67.8% surpassing top-line expectations. Against this backdrop, first-quarter 2018 is anticipated to register healthy earnings growth on a year-over-year basis.

While reckoning the performance of industrial stocks, our Earnings Preview reveals that earnings and revenues of all the industrial stocks in the benchmark index will likely climb 25.8% and 12.8%, respectively, on a year-over-year basis in the first quarter.

Notably, the Industrial Products sector is currently placed at the top of the 16 Zacks sectors.

Industrial production in Trump land has been experiencing a boom, of late. The U.S. industrial production in March inched up 0.5% sequentially and 4.3% year over year. This improvement primarily stemmed from a sharp rebound in output from utilities and sturdier mining yield. Furthermore, capacity utilization touched a three-year high, indicating that the economy possesses sufficient underlying strength.

Increased spending in residential housing and non-residential construction, entry of smarter products and Internet of Things, rise in new orders and reduced corporate tax rates are anticipated to fuel the sector’s growth in the quarter to be reported. However, apprehensions regarding the impact of U.S.-China trade-war as well as rate hike worries might act as spoilsports to some extent.

What’s in Store for 2 Industrial Stocks: FBHS & ALLE?

Below, we discuss briefly the expectations from the two industrial stocks slated to report their numbers for the first quarter tomorrow.

Fortune Brands Home & Security, Inc. FBHS is set to report results after the market closes. This Zacks Rank #3 (Hold) stock pulled off an average positive earnings surprise of 5.87%, over the last four quarters. The stock carries a favorable Zacks Rank, but an Earnings ESP of -0.89% makes surprise prediction inconclusive for the to-be-reported quarter. The Zacks Consensus Estimate for the company’s Q1 earnings is currently pegged at 59 cents, a penny higher than the Most Accurate estimate.

Fortune Brands Home & Security, Inc. Price and EPS Surprise

 

Fortune Brands Home & Security, Inc. Price and EPS Surprise | Fortune Brands Home & Security, Inc. Quote


Per our proven model, a stock needs to have a combination of a positive Earnings ESP, and a Zacks Rank #1 (Strong Buy) or 2 (Buy) or at least 3, for a likely earnings beat. You can see the complete list of today’s Zacks #1 Rank stocks here.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Prevalent labor-market challenges are expected to have dampened Fortune Brands’ profitability in the first quarter. Also, the recently-implemented plywood tariff and ongoing investment expenses might have impacted the company’s bottom-line performance. Nevertheless, the ongoing capacity-expansion moves and pricing actions are anticipated to have countered the above-mentioned headwinds.

Allegion PLC ALLE will release figures before the market opens. The company delivered an average positive earnings surprise of 8.72%, over the preceding four quarters. However, we are inconclusive about the company’s results for the quarter to be reported. This is because the company carries a Zacks Rank of 3 and has an Earnings ESP of 0.00%. The Zacks Consensus Estimate for Q1 earnings is in line with the Most Accurate estimate of 84 cents per share.

Allegion PLC Price and EPS Surprise

 

Allegion PLC Price and EPS Surprise | Allegion PLC Quote

Strategic acquisitions, robust product portfolio and overseas business expansion are expected to have driven Allegion’s profitability in the soon-to-be-reported quarter. However, headwinds like unfavorable climatic conditions and stiff industry rivalry might have offset the company’s growth drivers.

Don’t miss on our full earnings release articles for the two stocks, as the actual results might hold some surprises!

Investor Alert: Breakthroughs Pending

A medical advance is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating substantial revenue, and even more wondrous products are in the pipeline.

Cures for a variety of deadly diseases are in sight, and so are big potential profits for early investors. Zacks names 5 stocks to buy now.

Click here to see them >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Fortune Brands Home & Security, Inc. (FBHS) : Free Stock Analysis Report
 
Allegion PLC (ALLE) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research

Advertisement