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Industrial Stocks' Q3 Earnings on Oct 29: XRX, ETN & More

Zacks Equity Research

Per the latest Earnings Preview, total earnings of industrial stocks, grouped under the Zacks Industrial Products sector are expected to have declined 4.9%, and revenues are projected to have dropped 2% on a year-over-year basis in third-quarter 2019. The Industrial Products sector is one of the nine Zacks sectors that are likely to have recorded earnings decline for the July-September quarter.

Although many industrial companies are likely to have gained from improved demand across various end-markets served and others, prevalent problems — both on macro and micro levels — might have weighed on the industry’s third-quarter performance.

Manufacturing production recorded decline of 0.5% in September and 0.4% drop in July, primarily due to prolonged weakness in the automotive market. In addition, global uncertainties and trade tension between the United States and China is likely to get reflected on the Industrial Products sector’s results for the quarter. Notably, per the Institute for Supply Management’s latest report published on Oct 1, 2019, the U.S Purchasing Managers’ Index declined to 47.8% in September 2019, following readings of 49.1% in August and 51.2% in July.

Moreover, shortage of skilled labors, high logistic costs and forex woes are expected to get reflected in results of several companies. In addition, softness in the construction market in Canada is likely to have weighed on revenues.

Let’s take a sneak peek at five major Industrial Products stocks scheduled to report third-quarter 2019 earnings on Oct 29.

Xerox Corporation XRX is scheduled to report results before the opening bell. It recorded better-than-expected results thrice in the last four quarters, the average positive earnings surprise being 5.55%. (Read more: Xerox to Report Q3 Earnings: What's in the Offing?)

Per our proven model, a stock needs a combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Currently, Xerox has a Zacks Rank #3 and an Earnings ESP of 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at 85 cents. You can see the complete list of today’s Zacks #1 Rank stocks here.

Xerox Corporation Price and EPS Surprise

Xerox Corporation Price and EPS Surprise

Xerox Corporation price-eps-surprise | Xerox Corporation Quote

The Zacks Consensus Estimate for the company’s third-quarter earnings per share has remained stable in the past 60 days.

Eaton Corporation plc ETN will report results before the market open. It recorded better-than-expected results thrice in the last four quarters, the average positive earnings surprise being 0.72%.

Presently, the company has a Zacks Rank #4 (Sell) and an Earnings ESP of -0.53%, as the Most Accurate Estimate is pegged at $1.50, lower than the Zacks Consensus Estimate of $1.51. The company’s performance is likely to have suffered from tariff and forex woes.

Eaton Corporation, PLC Price and EPS Surprise

Eaton Corporation, PLC Price and EPS Surprise

Eaton Corporation, PLC price-eps-surprise | Eaton Corporation, PLC Quote

Over the past 60 days, the Zacks Consensus Estimate for the company's third-quarter earnings has declined 1.9%. (Read more: Eaton to Report Q3 Earnings: What's in the Offing?)

A. O. Smith Corporation AOS is set to report results before the market open. It recorded better-than-expected results once in the last four quarters, the negative earnings surprise being 3.45%.

The company has a Zacks Rank #4 and an Earnings ESP of -1.85%, as the Most Accurate Estimate is pegged at 53 cents, lower than the Zacks Consensus Estimate of 54 cents. Over the past 60 days, the Zacks Consensus Estimate for the quarter has remained unchanged.

A. O. Smith Corporation Price and EPS Surprise

A. O. Smith Corporation Price and EPS Surprise

A. O. Smith Corporation price-eps-surprise | A. O. Smith Corporation Quote

Weak demand for residential water heater volumes in North America along with higher steel prices, softer sales of water heaters and air purifiers in China might have adversely impacted A. O. Smith’s third-quarter revenues. (Read more: A. O. Smith to Report Q3 Earnings: What's in Store?)

Ingersoll-Rand plc IR is slated to report results before market open. It recorded better-than-expected results in each of the last four quarters, the average positive earnings surprise being 4.87%.

Presently, the company has a Zacks Rank #4 and an Earnings ESP of -0.47%, as the Most Accurate Estimate is pegged at $1.90, lower than the Zacks Consensus Estimate of $1.91. The company’s third-quarter results is likely to reflect headwinds related to rising cost of sales on account of material inflation and unfavorable foreign exchange movements.

Ingersoll-Rand PLC (Ireland) Price and EPS Surprise

Ingersoll-Rand PLC (Ireland) Price and EPS Surprise

Ingersoll-Rand PLC (Ireland) price-eps-surprise | Ingersoll-Rand PLC (Ireland) Quote

Over the past 60 days, the Zacks Consensus Estimate for the company's quarter has declined 0.5%. (Read more: Will Ingersoll-Rand Disappoint This Earnings Season?)

IDEX Corporation IEX will report results after market close. It recorded better-than-expected results all through in the last four quarters, the positive earnings surprise being 4.14%.

IDEX Corporation Price and EPS Surprise

IDEX Corporation Price and EPS Surprise

IDEX Corporation price-eps-surprise | IDEX Corporation Quote

The company has a Zacks Rank #3 and an Earnings ESP of -0.73%, as the Most Accurate Estimate is pegged at $1.45, lower than the Zacks Consensus Estimate of $1.46. Over the past 60 days, the Zacks Consensus Estimate for the quarter has remained unchanged.

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A. O. Smith Corporation (AOS) : Free Stock Analysis Report
 
Eaton Corporation, PLC (ETN) : Free Stock Analysis Report
 
IDEX Corporation (IEX) : Free Stock Analysis Report
 
Ingersoll-Rand PLC (Ireland) (IR) : Free Stock Analysis Report
 
Xerox Corporation (XRX) : Free Stock Analysis Report
 
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