Machinery Stocks' Q2 Earnings To Watch On Jul 20: GGG, ITW

 | Jul 19, 2016 05:45AM ET

We believe that economic uncertainties in some developed and emerging nations, soft commodity prices and forex woes played spoilsport for industries like Industrial Products in second-quarter 2016. However, the impact of such headwinds is subdued compared with first-quarter 2016. In the U.S., roughly 1% year-over-year decline in industrial production is believed to have impacted industrial machine and tool makers.

According to the Zacks Industry classification, the machinery industry is broadly grouped under Industrial Products, one of the 16 broad Zacks sectors. Per our report dated Jul 15, earnings for the Industrial Products sector are expected to decline 8.6% in the second quarter, while revenues will likely fall 5.6%.

What’s in Store for 2 Machinery Stocks, GGG and ITW?

Below we discuss briefly the expectations from the upcoming results (Apr-Jun quarter) for two machinery stocks:

Graco Inc. (NYSE:GGG) : This machinery company is slated to release its second-quarter 2016 results on Jul 20, after the market closes. In the four trailing quarters, the company reported below-expected results in one while surpassing estimates in the rest with an average positive earnings surprise of 8.84%.

h3 GRACO INC Price and EPS Surprise/h3 Zacks Investment Research

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