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Altra Industrial (AIMC) to Report Q4 Earnings: What to Expect?
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Altra Industrial Motion Corp. is scheduled to release fourth-quarter 2020 results on Feb 12, before market open.
The company delivered better-than-expected results in three of the last four quarters, while lagging estimates in one. The earnings surprise for the last four quarters was a positive 50.07%, on average.
In the past three months, shares of Altra Industrial have gained 9.3% compared with the industry’s growth of 3.4%.
Let us delve deeper.
Key Factors & Estimates for Q4
Altra Industrial’s fourth-quarter 2020 results are expected to reflect gains from solid product offerings, supply-chain initiatives, effective pricing actions and technological expertise. Also, managing of working capital and growing e-commerce business are expected to have aided.
Regarding end markets, healthy businesses in defense and transportation as well as growth in demand for automation products are likely to have boosted top-line performance. On the broader aspect, improvement in manufacturing activities in the United States is expected to have benefitted manufacturing players like Altra Industrial. Key indicators supporting this belief include an 11.2% year-over-year increase in manufacturing output in the fourth quarter of 2020 and ISM Purchasing Managers' Index increasing from 55.4% in September to 60.7% in December.
On the flip side, lower sales in China are expected to have adversely impacted top-line performance in the fourth quarter. Altra Industrial expects fourth-quarter sales to decline from the previous quarter. Also, a sequential increase in selling, general and administrative expenses as well as investments to enhance automation capabilities and boost technology is expected to have ailed.
Further, weakness in the commercial aerospace market as well as supply-chain issues in the renewable energy market is anticipated to have hurt performance in the fourth quarter. The impacts of softness in the mining, metals, and oil & gas markets are also likely to get reflected in the results.
The Zack Consensus Estimate for the company’s fourth-quarter earnings is pegged at 70 cents per share, indicating growth of 6.1% from the year-ago reported figure and a 19.5% dip sequentially. Also, the consensus estimate for revenues of $432 million suggests a 2.3% decrease from the year-ago quarter’s reported number and a 1.4% decline from the last reported quarter’s figure.
A brief discussion on estimates for the two segments for the fourth quarter is provided below.
The Zacks Consensus Estimate for Automation & Specialty’s revenues is pegged at $232 million for the fourth quarter, suggesting 3.6% growth from the year-ago quarter’s reported figure and a 3.7% decline sequentially.
The consensus estimate for the Power Transmission Technologies segment’s revenues stands at $201 million, suggesting an 8.2% decline from the year-ago reported figure and growth of 1.5% from the previous quarter.
Earnings Whispers
Our proven model suggests an earnings beat for Altra Industrial this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is exactly the case with Altra Industrial as is shown below. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Altra Industrial has an Earnings ESP of +0.48%.
Altra Industrial Motion Corp. Price, Consensus and EPS Surprise
Zacks Rank: The company currently carries a Zacks Rank #2.
Other Stocks to Consider
Here are some other companies in the Zacks Industrial Products sector that you may want to consider as according to our model these too have the right combination of elements to post an earnings beat this quarter.
Rexnord Corporation currently has an Earnings ESP of +5.05% and a Zacks Rank #3.
The Middleby Corporation (MIDD - Free Report) presently has an Earnings ESP of +6.20% and a Zacks Rank #2.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.9% per year.
These 7 were selected because of their superior potential for immediate breakout.
Image: Bigstock
Altra Industrial (AIMC) to Report Q4 Earnings: What to Expect?
Altra Industrial Motion Corp. is scheduled to release fourth-quarter 2020 results on Feb 12, before market open.
The company delivered better-than-expected results in three of the last four quarters, while lagging estimates in one. The earnings surprise for the last four quarters was a positive 50.07%, on average.
In the past three months, shares of Altra Industrial have gained 9.3% compared with the industry’s growth of 3.4%.
Let us delve deeper.
Key Factors & Estimates for Q4
Altra Industrial’s fourth-quarter 2020 results are expected to reflect gains from solid product offerings, supply-chain initiatives, effective pricing actions and technological expertise. Also, managing of working capital and growing e-commerce business are expected to have aided.
Regarding end markets, healthy businesses in defense and transportation as well as growth in demand for automation products are likely to have boosted top-line performance. On the broader aspect, improvement in manufacturing activities in the United States is expected to have benefitted manufacturing players like Altra Industrial. Key indicators supporting this belief include an 11.2% year-over-year increase in manufacturing output in the fourth quarter of 2020 and ISM Purchasing Managers' Index increasing from 55.4% in September to 60.7% in December.
On the flip side, lower sales in China are expected to have adversely impacted top-line performance in the fourth quarter. Altra Industrial expects fourth-quarter sales to decline from the previous quarter. Also, a sequential increase in selling, general and administrative expenses as well as investments to enhance automation capabilities and boost technology is expected to have ailed.
Further, weakness in the commercial aerospace market as well as supply-chain issues in the renewable energy market is anticipated to have hurt performance in the fourth quarter. The impacts of softness in the mining, metals, and oil & gas markets are also likely to get reflected in the results.
The Zack Consensus Estimate for the company’s fourth-quarter earnings is pegged at 70 cents per share, indicating growth of 6.1% from the year-ago reported figure and a 19.5% dip sequentially. Also, the consensus estimate for revenues of $432 million suggests a 2.3% decrease from the year-ago quarter’s reported number and a 1.4% decline from the last reported quarter’s figure.
A brief discussion on estimates for the two segments for the fourth quarter is provided below.
The Zacks Consensus Estimate for Automation & Specialty’s revenues is pegged at $232 million for the fourth quarter, suggesting 3.6% growth from the year-ago quarter’s reported figure and a 3.7% decline sequentially.
The consensus estimate for the Power Transmission Technologies segment’s revenues stands at $201 million, suggesting an 8.2% decline from the year-ago reported figure and growth of 1.5% from the previous quarter.
Earnings Whispers
Our proven model suggests an earnings beat for Altra Industrial this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is exactly the case with Altra Industrial as is shown below. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Altra Industrial has an Earnings ESP of +0.48%.
Altra Industrial Motion Corp. Price, Consensus and EPS Surprise
Altra Industrial Motion Corp. price-consensus-eps-surprise-chart | Altra Industrial Motion Corp. Quote
Zacks Rank: The company currently carries a Zacks Rank #2.
Other Stocks to Consider
Here are some other companies in the Zacks Industrial Products sector that you may want to consider as according to our model these too have the right combination of elements to post an earnings beat this quarter.
Lincoln Electric Holdings, Inc. (LECO - Free Report) presently has an Earnings ESP of +4.55% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Rexnord Corporation currently has an Earnings ESP of +5.05% and a Zacks Rank #3.
The Middleby Corporation (MIDD - Free Report) presently has an Earnings ESP of +6.20% and a Zacks Rank #2.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.9% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers now >>