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Industrial Stocks' Earnings Due on Jan 29: IR, SWK & More

Zacks Equity Research

Industrial Products, which is one of 16 Zacks sectors, includes the results of industrial stocks. Earnings for the sector are predicted to decline 5.2% year over year for the October-December quarter of 2019 on 0.8% growth in revenues. Margins are predicted to fall 0.6%. Notably, the sector’s earnings and revenues in the third quarter (ended September 2019) decreased 1.6% and 0.5% year over year, respectively.

Key Factors for Industrial Stocks

Operating conditions for industrial stocks were somewhat weak in the October-December quarter of 2019. The country’s industrial production decreased 0.5% year over year in the quarter, recording a fall of 0.5% in October, growth of 0.8% in November and a decline of 0.3% in December.

The manufacturing sector was weak in the quarter, with output down 1% year over year.

In addition, trade tensions between the United States and China might have hurt corporate margins. Also, global uncertainties, forex woes, high freight charges and cost-inflationary pressure, among others might have played spoilsport.

However, a few tailwinds — including gains from corporate tax changes, government’s emphasis on infrastructure development, government’s efforts to lower tariff-related woes by reaching a phase-one trade deal with China and others — might have supported performances of the companies.

Stocks Slated for Earnings Release on Jan 29

Below, we briefly discussed what we expect from five industrial stocks in the October-December quarter of 2019.

Ingersoll-Rand plc IR will release fourth-quarter 2019 results before market open. It delivered better-than-expected results in the last four quarters, with a positive earnings surprise of 5.48%, on average.

Ingersoll-Rand PLC (Ireland) Price, Consensus and EPS Surprise

Ingersoll-Rand PLC (Ireland) Price, Consensus and EPS Surprise

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

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

You can see the complete list of today’s Zacks #1 Rank stocks here.

Currently, Ingersoll-Rand has a Zacks Rank #3 and an Earnings ESP of 0.00%. The company might have gained from residential and non-residential heating, ventilation and air conditioning (HVAC) markets, investments, pricing and productivity actions, and others. However, forex woes and high costs might have adversely impacted results.

The Zacks Consensus Estimate for the company’s quarterly earnings has been unchanged at $1.42 per share in the past 60 days. (For more please read: Ingersoll-Rand to Post Q4 Earnings: What's in Store?)

Stanley Black & Decker, Inc. SWK will report fourth-quarter 2019 results before market open. It recorded better-than-expected results in three of the last four quarters, while recording in-line results in one. Earnings surprise for the period was a positive 9.71%, on average.

Stanley Black & Decker, Inc. Price, Consensus and EPS Surprise

Stanley Black & Decker, Inc. Price, Consensus and EPS Surprise

Stanley Black & Decker, Inc. price-consensus-eps-surprise-chart | Stanley Black & Decker, Inc. Quote

Presently, the company has a Zacks Rank #3 and an Earnings ESP of +1.21%. Its performance is likely to have benefited from solid product demand, emerging market exposure, pricing actions and others. External headwinds as well as weakness in general and automotive markets might have been dampeners.

Over the past 60 days, the Zacks Consensus Estimate for the company’s quarterly earnings has been unchanged at $2.6 per share. (For more please read: Will Stanley Black & Decker Post Upbeat Q4 Earnings?)

Rockwell Automation, Inc. ROK will report results for first-quarter fiscal 2020 before market open. It recorded better-than-expected results in three of the last four quarters, while lagging estimates once. Earnings surprise for the period was positive 4.45%, on average.

Rockwell Automation, Inc. Price, Consensus and EPS Surprise

Rockwell Automation, Inc. Price, Consensus and EPS Surprise

Rockwell Automation, Inc. price-consensus-eps-surprise-chart | Rockwell Automation, Inc. Quote

Presently, the company has a Zacks Rank #3 and an Earnings ESP of +1.36%. The U.S.-China trade war and material cost inflation might have taken a toll on its performance in the quarter. However, productivity actions and efforts to mitigate tariff impacts might have aided.

Over the past 60 days, the Zacks Consensus Estimate for fiscal first-quarter earnings has declined 3.2% to $2.11 per share. (For more please read: Rockwell Automation to Post Q1 Earnings: What to Expect?)

IDEX Corporation IEX will report fourth-quarter 2019 results after market close. It recorded better-than-expected results in the last four quarters, with a positive earnings surprise of 3.26%, on average.

IDEX Corporation Price, Consensus and EPS Surprise

IDEX Corporation Price, Consensus and EPS Surprise

IDEX Corporation price-consensus-eps-surprise-chart | IDEX Corporation Quote

Presently, the company has a Zacks Rank #2 and an Earnings ESP of 0.00%. Over the past 60 days, the Zacks Consensus Estimate for the quarter under review has been unchanged at $1.35 per share.

Avery Dennison Corporation AVY will report fourth-quarter 2019 results before market open. It recorded better-than-expected results in the last four quarters. Earnings surprise was a positive 2.21%, on average.

Avery Dennison Corporation Price, Consensus and EPS Surprise

Avery Dennison Corporation Price, Consensus and EPS Surprise

Avery Dennison Corporation price-consensus-eps-surprise-chart | Avery Dennison Corporation Quote

Presently, the company has a Zacks Rank #3 and an Earnings ESP of 0.00%. It might have benefited from buyouts, emerging market exposure, pricing actions and others.

Over the past 60 days, the Zacks Consensus Estimate for its quarterly earnings has been unchanged at $1.68 per share. (For more please read: Factors Setting the Tone for Avery Dennison Q4 Earnings)

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>


Click to get this free report

Rockwell Automation, Inc. (ROK) : Free Stock Analysis Report

Stanley Black & Decker, Inc. (SWK) : Free Stock Analysis Report

Ingersoll-Rand PLC (Ireland) (IR) : Free Stock Analysis Report

IDEX Corporation (IEX) : Free Stock Analysis Report

Avery Dennison Corporation (AVY) : Free Stock Analysis Report

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