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Hyster-Yale (HY) Gears Up for Q2 Earnings: Things to Note
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Hyster-Yale, Inc. (HY - Free Report) is expected to deliver a year-over-year improvement in earnings despite a dip in revenues when it reports second-quarter 2024 results on Aug 6, after market close.
The Zacks Consensus Estimate for earnings has remained unchanged over the past 30 days at $2.28 per share. The consensus mark implies 3.2% growth from the year-ago actual. The consensus estimate for revenues is pegged at $1.08 billion, indicating a 1% year-over-year decline.
Image Source: Zacks Investment Research
In the last reported quarter, the company’s earnings beat the consensus estimate by a solid margin of 36.9%. Hyster-Yale has a trailing four-quarter earnings surprise of 17.44%, on average.
Our proven model does not conclusively predict an earnings beat for Hyster-Yale 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. But that is not the case here.
Earnings ESP: HY has an Earnings ESP of 0.00%. You can uncover the best stocks before they are reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank of 3.
Factors Likely to Shape Q2 Results
In the first quarter, Hyster Yale’s Lift Truck business reported a 6% increase in revenues driven by improved pricing, which was partially offset by lower unit shipments. Shipment volumes declined 8% year over year, due to a 21% decline in EMEA on lower production rates. America's shipments decreased due to lower shipments in Brazil.
Bookings were down 18% year over year, reflecting extended backlog levels and the company’s focus on taking orders with strong margins. The downtrend also reflected the overall market decline. However, quarter-over-quarter bookings are expected to have picked up, aided by market share gains in the Americas and EMEA. Shipments are expected to have improved in the second quarter on higher production rates, as well as supply-chain and labor improvements in the Americas and EMEA.
The Lift Truck business ended the first quarter with 73,600 units in backlog, down 6% year over year, in line with the company’s objectives to reduce backlog levels and improve lead times. Despite the decline, the backlog was valued at around $3.1 billion and equivalent to nine months of shipments. This is likely to have supported the segment’s quarterly performance.
The segment witnessed a favorable shift in sales to higher-priced lift trucks in the first quarter. This was mainly driven by sales in the Americas of Class 4 and higher-priced/higher-capacity, four-52-ton, Class 5 internal combustion engine lift trucks. Overall, the Lift Truck segment is expected to report revenue and operating profit growth from the prior year as unit volumes increased and higher-priced, higher-margin backlog units were shipped through the second quarter.
Bolzoni's revenues decreased 2% year over year in the first quarter, mainly reflecting the planned phase-out of low-margin legacy component sales. Due to this strategic shift, along with an increase in the production of higher-margin attachments by Bolzoni, we expect its second-quarter revenues to be consistent with the year-ago quarter level. Even though these efforts are expected to have boosted gross margins, these gains are likely to have been offset by higher operating expenses and, therefore, resulted in a decline in the operating profit.
Nuvera has been focused on increasing customer product demonstrations and customer bookings and expanding its presence in Europe and China. Booked orders from current customers are expected to have resulted in higher sales. However, improved margins on these higher sales are expected to have been offset by increased development costs. We expect the segment’s operating profit to be relatively unchanged from the second quarter of 2023.
Price Performance
Hyster-Yale’s shares have gained 55.5% in the past year, outperforming its industry’s 12.9% growth.
Image Source: Zacks Investment Research
Stocks to Consider
Here are some companies with the right combination of elements to post an earnings beat in their upcoming releases.
The Zacks Consensus Estimate for EMR’s earnings is pegged at $1.42 per share, indicating year-over-year growth of 10.1%. It has a trailing four-quarter average earnings surprise of 10.7%.
Atkore Inc. (ATKR - Free Report) is scheduled to release its fiscal third-quarter results on Aug 6. It has an Earnings ESP of +0.62% and a Zacks Rank of 3 at present.
The Zacks Consensus Estimate for ATKR’s earnings is pegged at $4.03 per share, indicating a year-over-year fall of 29.6%. It has a trailing four-quarter average earnings surprise of 15.4%.
Plug Power (PLUG - Free Report) , scheduled to release its second-quarter results on Aug 8, has an Earnings ESP of +1.67% and a Zacks Rank of 3.
The Zacks Consensus Estimate for Plug Power’s earnings is currently pegged at a loss of 30 cents per share, indicating an improvement from the loss of 35 cents per share in the year-ago quarter.
Image: Bigstock
Hyster-Yale (HY) Gears Up for Q2 Earnings: Things to Note
Hyster-Yale, Inc. (HY - Free Report) is expected to deliver a year-over-year improvement in earnings despite a dip in revenues when it reports second-quarter 2024 results on Aug 6, after market close.
The Zacks Consensus Estimate for earnings has remained unchanged over the past 30 days at $2.28 per share. The consensus mark implies 3.2% growth from the year-ago actual. The consensus estimate for revenues is pegged at $1.08 billion, indicating a 1% year-over-year decline.
In the last reported quarter, the company’s earnings beat the consensus estimate by a solid margin of 36.9%. Hyster-Yale has a trailing four-quarter earnings surprise of 17.44%, on average.
Hyster-Yale, Inc. Price and EPS Surprise
Hyster-Yale, Inc. price-eps-surprise | Hyster-Yale, Inc. Quote
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Hyster-Yale 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. But that is not the case here.
Earnings ESP: HY has an Earnings ESP of 0.00%. You can uncover the best stocks before they are reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank of 3.
Factors Likely to Shape Q2 Results
In the first quarter, Hyster Yale’s Lift Truck business reported a 6% increase in revenues driven by improved pricing, which was partially offset by lower unit shipments. Shipment volumes declined 8% year over year, due to a 21% decline in EMEA on lower production rates. America's shipments decreased due to lower shipments in Brazil.
Bookings were down 18% year over year, reflecting extended backlog levels and the company’s focus on taking orders with strong margins. The downtrend also reflected the overall market decline. However, quarter-over-quarter bookings are expected to have picked up, aided by market share gains in the Americas and EMEA. Shipments are expected to have improved in the second quarter on higher production rates, as well as supply-chain and labor improvements in the Americas and EMEA.
The Lift Truck business ended the first quarter with 73,600 units in backlog, down 6% year over year, in line with the company’s objectives to reduce backlog levels and improve lead times. Despite the decline, the backlog was valued at around $3.1 billion and equivalent to nine months of shipments. This is likely to have supported the segment’s quarterly performance.
The segment witnessed a favorable shift in sales to higher-priced lift trucks in the first quarter. This was mainly driven by sales in the Americas of Class 4 and higher-priced/higher-capacity, four-52-ton, Class 5 internal combustion engine lift trucks. Overall, the Lift Truck segment is expected to report revenue and operating profit growth from the prior year as unit volumes increased and higher-priced, higher-margin backlog units were shipped through the second quarter.
Bolzoni's revenues decreased 2% year over year in the first quarter, mainly reflecting the planned phase-out of low-margin legacy component sales. Due to this strategic shift, along with an increase in the production of higher-margin attachments by Bolzoni, we expect its second-quarter revenues to be consistent with the year-ago quarter level. Even though these efforts are expected to have boosted gross margins, these gains are likely to have been offset by higher operating expenses and, therefore, resulted in a decline in the operating profit.
Nuvera has been focused on increasing customer product demonstrations and customer bookings and expanding its presence in Europe and China. Booked orders from current customers are expected to have resulted in higher sales. However, improved margins on these higher sales are expected to have been offset by increased development costs. We expect the segment’s operating profit to be relatively unchanged from the second quarter of 2023.
Price Performance
Hyster-Yale’s shares have gained 55.5% in the past year, outperforming its industry’s 12.9% growth.
Stocks to Consider
Here are some companies with the right combination of elements to post an earnings beat in their upcoming releases.
Emerson Electric Co. (EMR - Free Report) is scheduled to release its third-quarter fiscal 2024 results on Aug 7. It has an Earnings ESP of +0.14% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for EMR’s earnings is pegged at $1.42 per share, indicating year-over-year growth of 10.1%. It has a trailing four-quarter average earnings surprise of 10.7%.
Atkore Inc. (ATKR - Free Report) is scheduled to release its fiscal third-quarter results on Aug 6. It has an Earnings ESP of +0.62% and a Zacks Rank of 3 at present.
The Zacks Consensus Estimate for ATKR’s earnings is pegged at $4.03 per share, indicating a year-over-year fall of 29.6%. It has a trailing four-quarter average earnings surprise of 15.4%.
Plug Power (PLUG - Free Report) , scheduled to release its second-quarter results on Aug 8, has an Earnings ESP of +1.67% and a Zacks Rank of 3.
The Zacks Consensus Estimate for Plug Power’s earnings is currently pegged at a loss of 30 cents per share, indicating an improvement from the loss of 35 cents per share in the year-ago quarter.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.