Milacron Holdings (MCRN) Q1 Earnings: What's In Store?
Zacks Investment Research | May 03, 2016 06:28AM ET
Milacron Holdings Corp. (NYSE:MCRN) is set to release first-quarter 2016 results before the opening bell on May 5. In the last reported quarter, Milacron reported adjusted earnings per share of 48 cents, a 13% decline year over year. Let's see how things are shaping up for this announcement.
Cincinnati, OH-based Milacron makes engineered and customized systems within the plastic technology and processing industry in North America, Europe, Asia and internationally.
Earnings Whispers
Our proven model does not conclusively show that Milacron will beat estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is not the case here as you will see below.
Zacks ESP: Milacron’s Earnings ESP is 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at 27 cents.
Zacks Rank: Milacron carries a Zacks Rank #3 (Hold) increases the predictive power of ESP. However, a 0.0% ESP makes surprise prediction difficult.
We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Surprise History
In the last quarter, the company posted a positive earnings surprise of 20.00%. In the past three quarters, the company managed to beat the Zacks Consensus Estimate on 2 occasions. The company has an average positive surprise of 20.36%.
Factors to Consider
The weak economic environment continues to impact Milacron’s industrial end-markets. The company meanwhile remained focused on executing its strategic fundamentals, which include reducing its cost structure and optimizing its global manufacturing footprint. Milacron has lately introduced new products which have met with success, enabling it to grow share in existing markets, defend share and grow addressable markets with disruptive technology and unique offerings.
Milacron’s demand will continue to be affected by cyclical trends in client capital expenditures, industrial production and construction activity. Further, free cash flow will be constrained by higher working capital needs and the capital investment required for restructuring its European manufacturing footprint.
Moreover, the first quarter is seasonally lower for Milacron. Typically, the company witnesses substantial order build-up at the beginning part of the year, however, the actual sales activity and earnings activity gets reflected in the ensuing quarters.
Get The News You Want
Stocks That Warrant a Look
Here are some stocks in the industrial products space that you may want to consider, as our model shows they have the right combination of elements to post an earnings beat this quarter:
Vertex Energy, Inc. (NASDAQ:VTNR) has an Earnings ESP of +13.04% and a Zacks Rank #3.
Nordson Corp. (NASDAQ:NDSN) has an Earnings ESP of +3.26% and a Zacks Rank #3.
Regal Beloit Corp. (NYSE:RBC) has an Earnings ESP of +0.92% and a Zacks Rank #2.
Zacks Investment Research
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.