Machinery Stocks' Earnings To Watch On Jul 29: B, GRC, GHM
Zacks Investment Research | Jul 28, 2016 04:36AM ET
We believe that financial performance of U.S.-based industrial products stocks are highly correlated to the economic conditions as well as industrial production of the country. In the Apr–Jun quarter, the country’s industrial output fell roughly 1% year over year. On a macro front, these stocks faced headwinds from unfavorable foreign currency movements and weak economic conditions in some developed and developing nations. However, the impacts of such adversities are believed to have ebbed compared with the first quarter.
According to the Zacks Industry classification, the machinery industry is broadly grouped under Industrial Products, one of the 16 broad Zacks sectors.
As of Jul 27, roughly 42.9% of industrial products stocks in the S&P 500 Group reported results for the Apr–Jun quarter, recording a 2.3% decline in earnings and 5.3% fall in revenue. The prevalent macro headwinds are likely to negatively impact results for the Industrial Products sector. Earnings in the quarter are predicted to decline 5.6% while revenue will likely fall 5.8%.
What’s in Store for 3 Machinery Stocks, B, GRC and GHM?
Below we discuss briefly the expectations from the upcoming results (Apr–Jun quarter) for three machinery stocks:
Barnes Group Inc. (NYSE:B) : This machinery company is slated to release its second-quarter 2016 results on Jul 29, before the market opens. In the trailing four quarters, the company delivered better-than-expected results in one, lagged in two and posted in-line results in the other. Average earnings surprise was a negative 2.66%.
BARNES GRP Price and EPS Surprise/h3
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