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ITW & LECO Q2 Earnings on Jul 23: Here are the Key Predictions
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The Q2 earnings season has kicked off on an impressive note. Nearly 48 S&P 500 members have already released their results, till Jul 19. Per our latest Earnings Outlook, total earnings for these companies are up 23% year over year on 10% higher revenues, with 89.6% beating earnings estimates, and 83.3% surpassing top-line expectations.
Against this backdrop, the second-quarter earnings session is likely to register healthy earnings growth on a year-over-year basis. Notably, overall earnings for S&P 500 companies are anticipated to be up 20.4% from the year-ago quarter on revenues that are estimated to increase 8.3%.
The Zacks Industrial sector is one of the 11 sectors anticipated to report double-digit earnings growth in the quarter. Our Earnings Outlook reveals that earnings and revenues of all the industrial stocks in the benchmark index will likely climb 24.5% and 10.9%, respectively, on a year-over-year basis in this reporting cycle.
Industrial stocks have been in investors’ good graces, of late, driven by impressive factors such as rise in U.S. manufacturing and mining outlays. Investments across these domains have been gathering steaming on the back of the White House enacted tax overhaul and an upbeat job market.
A rebound in June’s industrial production numbers and capacity utilization remaining below the long-term average makes us optimistic toward the sector’s performance in the second quarter.
However, the Trump administration’s aggressive stance on trade issues, retaliatory measures from other countries or higher prices for consumables might derail industrial gains, going forward.
What’s in Store for These Two Industrial Stocks?
Illinois Tool Works Inc. (ITW - Free Report) is scheduled to report second-quarter 2018 results before the market opens.
The company pulled off an average positive earnings surprise of 3.28% over the last four quarters. Notably, in the last reported quarter, Illinois Tool’s earnings of $1.90 per share surpassed the Zacks Consensus Estimate by 2.7%. The earnings estimate for the to-be-reported quarter is pegged at $1.98.
Robust end-market demand and ongoing enterprise initiates will likely aid in boosting second-quarter earnings of this Zacks Rank #3 (Hold) stock. Nonetheless, input cost inflation and rising freight charges remain drags. (Read More::Illinois Tool Works Q2 Earnings: What's in Store?).
Lincoln Electric Holdings, Inc. (LECO - Free Report) is also set to report April-June quarter figure, before the market opens.
The company came up with an average positive earnings surprise of 2.56%, over the trailing four quarters. Notably, in the last reported quarter, Lincoln Electric’s earnings of $1.10 per share outpaced the Zacks Consensus Estimate by 1.85%. The earnings estimate for the second quarter is pegged at $1.23.
Lincoln Electric’s second-quarter earnings will likely benefit from its research and development investments, recently-introduced pricing actions and reduced corporate tax rates. However, input price inflation remains a major cause of concern for this Zacks Rank #4 (Sell) company.
The Zacks Consensus Estimate for second-quarter net revenues of the company’s Americas Welding, International Welding and The Harris Products Group segments are currently pegged at $449 million, $262 million and $84 million, respectively, higher than the corresponding tallies of $435 million, $247 million and $76 million recorded in the previous quarter.
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With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
Image: Bigstock
ITW & LECO Q2 Earnings on Jul 23: Here are the Key Predictions
The Q2 earnings season has kicked off on an impressive note. Nearly 48 S&P 500 members have already released their results, till Jul 19. Per our latest Earnings Outlook, total earnings for these companies are up 23% year over year on 10% higher revenues, with 89.6% beating earnings estimates, and 83.3% surpassing top-line expectations.
Against this backdrop, the second-quarter earnings session is likely to register healthy earnings growth on a year-over-year basis. Notably, overall earnings for S&P 500 companies are anticipated to be up 20.4% from the year-ago quarter on revenues that are estimated to increase 8.3%.
The Zacks Industrial sector is one of the 11 sectors anticipated to report double-digit earnings growth in the quarter. Our Earnings Outlook reveals that earnings and revenues of all the industrial stocks in the benchmark index will likely climb 24.5% and 10.9%, respectively, on a year-over-year basis in this reporting cycle.
Industrial stocks have been in investors’ good graces, of late, driven by impressive factors such as rise in U.S. manufacturing and mining outlays. Investments across these domains have been gathering steaming on the back of the White House enacted tax overhaul and an upbeat job market.
A rebound in June’s industrial production numbers and capacity utilization remaining below the long-term average makes us optimistic toward the sector’s performance in the second quarter.
However, the Trump administration’s aggressive stance on trade issues, retaliatory measures from other countries or higher prices for consumables might derail industrial gains, going forward.
What’s in Store for These Two Industrial Stocks?
Illinois Tool Works Inc. (ITW - Free Report) is scheduled to report second-quarter 2018 results before the market opens.
The company pulled off an average positive earnings surprise of 3.28% over the last four quarters. Notably, in the last reported quarter, Illinois Tool’s earnings of $1.90 per share surpassed the Zacks Consensus Estimate by 2.7%. The earnings estimate for the to-be-reported quarter is pegged at $1.98.
Robust end-market demand and ongoing enterprise initiates will likely aid in boosting second-quarter earnings of this Zacks Rank #3 (Hold) stock. Nonetheless, input cost inflation and rising freight charges remain drags. (Read More::Illinois Tool Works Q2 Earnings: What's in Store?).
Lincoln Electric Holdings, Inc. (LECO - Free Report) is also set to report April-June quarter figure, before the market opens.
The company came up with an average positive earnings surprise of 2.56%, over the trailing four quarters. Notably, in the last reported quarter, Lincoln Electric’s earnings of $1.10 per share outpaced the Zacks Consensus Estimate by 1.85%. The earnings estimate for the second quarter is pegged at $1.23.
Lincoln Electric’s second-quarter earnings will likely benefit from its research and development investments, recently-introduced pricing actions and reduced corporate tax rates. However, input price inflation remains a major cause of concern for this Zacks Rank #4 (Sell) company.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for second-quarter net revenues of the company’s Americas Welding, International Welding and The Harris Products Group segments are currently pegged at $449 million, $262 million and $84 million, respectively, higher than the corresponding tallies of $435 million, $247 million and $76 million recorded in the previous quarter.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>