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Printing Stocks to Watch for Earnings on Aug 2: ARC, KRNT

Zacks Equity Research

With 317 companies on the S&P 500 index having reported their numbers, it can be safely said that the overall trends are pretty much set for all the sectors. These companies that account for 73.5% of the index’s total market capitalization, have suffered a 3.3% decline in earnings. Overall, total S&P 500 earnings are expected to be down 3.4% on a 0.4% dip in revenues. If the estimates are proved to be true, this will be the fifth quarter in a row to suffer an earnings decline. (Read more: Q2 Earnings Trends Already Established).

The Printing-commercial industry falls under the Industrial Products sector – one of the 16 Zacks sectors. In the Industrial Products sector, 71.4% of the companies have reported their second-quarter numbers and put up a 1.4% fall in earnings on the scoreboard. Based on our projections for the quarter, growth will be in the red for 9 of the 16 Zacks sectors and the Industrial Products sector will be no exception as the sector’s earnings are anticipated to fall 5.1% in the quarter. However, it is a major improvement, compared to the unceremonious 22.2% plunge in earnings suffered by the sector in first-quarter 2016.

Let’s have a look at how the printing stocks are likely to fare as they report their numbers on Aug 2.

ARC Document Solutions, Inc. ARC – a document solutions company providing business-to-business document management technology and services to the architectural, engineering and construction or AEC industries – will report its second-quarter results on Aug 2, 2016.

The company is working hard to offset the slow secular declines in its traditional business with new solutions. The company’s Earnings ESP of 0.00% and Zacks Rank #3 (Hold) make surprise prediction difficult.

ARC DOC SOLUT Price and EPS Surprise

ARC DOC SOLUT Price and EPS Surprise | ARC DOC SOLUT Quote

In the last quarter, its earnings came in line with the Zacks Consensus Estimate. The stock has posted an average negative earnings surprise of 2.46% over the trailing four quarters.

Kornit Digital Ltd. KRNT, which is engaged in developing, manufacturing and marketing industrial and commercial printing solutions will report second-quarter results on Aug 2.

The company will benefit from robust demand for its new Storm Hexa product, strong Europe and UK markets, and introduction of new products. However, the stock’s Earnings ESP of 0.00% and Zacks Rank #3 (Hold) make surprise prediction difficult.

KORNIT DIGITAL Price and EPS Surprise

KORNIT DIGITAL Price and EPS Surprise | KORNIT DIGITAL Quote

The stock has posted an average positive earnings surprise of 60.32% in the trailing four quarters.

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ARC DOC SOLUT (ARC): Free Stock Analysis Report
 
KORNIT DIGITAL (KRNT): Free Stock Analysis Report
 
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