Industrial Stocks Earnings On May 9: ATKR, ALRM, AAXN & More

The Q1 earnings season is in its last leg, with only 18% of the S&P 500 members left to report their quarterly figures.

Our last Earnings Preview article reveals that the overall performance of the reporting cycle has been fairly good till now. As of May 5, 412 S&P 500 companies have released earnings, accounting for 85.7% of the index’s total market capitalization, with 73.3% topping earnings per share estimates and 67.7% coming in ahead of top-line expectations.

Till May 5, roughly 90.9% of the Industrial stocks in the S&P 500 Group have reported results for this quarter, recording 25.1% rise in earnings and 11.1% upside in revenues on a year-over-year basis.

We project that earnings and revenues of all the Industrial stocks in the S&P 500 Group would climb 22.1% and 8%, respectively, year over year.

Industrial stocks have been displaying sturdy performances since the U.S. presidential election. Certain factors such as Donald Trump’s intentions to boost U.S. infrastructure spending and the recovering economy in China have been driving the top- and bottom-line results of these stocks.

However, on the other hand, dismal pricing conditions prevailing in the mining and energy markets are likely to dent some solid growth opportunities.

What’s in Store for these 4 Industrial Stocks?

Atkore International Group (NYSE:ATKR) is slated to report second-quarter fiscal 2017 (ended Mar 31, 2017) results on May 9, before the market opens. The company has a negative average earnings surprise of 4.29% for the last four quarters.

Our proven model does not conclusively show that Atkore International would beat estimates in this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or at least 3 (Hold) for an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

That is not the case here as we will see below.

Atkore International’s Earnings ESP is 0.00%, as the Most Accurate estimate comes in line with the Zacks Consensus Estimate of 36 cents. Though the company carries a favorable Zacks Rank #3, we also need to have a positive ESP to be confident of an earnings beat. Notably, there has been no change in the quarter estimate over the last seven days.

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

Alarm.Com Holdings, Inc. (NASDAQ:ALRM) is set to report first-quarter 2017 results on May 9, after the market closes. The company has a positive average earnings surprise of 40.56% for the past four quarters. However, our proven model does not conclusively show that Alarm.Com would beat on earnings in this quarter. The company carries a favorable Zacks Rank #2, but an Earnings ESP of 0.00% makes surprise prediction inconclusive. The stock’s Most Accurate estimate of 13 cents is in line with the Zacks Consensus Estimate. Notably, there has been no change in the quarter estimate over the last seven days.

Axon Enterprise, Inc. (NASDAQ:AAXN) is scheduled to release first-quarter results on May 9 after market close. The company generated a positive average earnings surprise of 70.61% over the trailing four quarters. However, our proven model does not conclusively show that Axon Enterprise would beat estimates in the quarter. The company carries an unfavorable Zacks Rank #4 and its Earnings ESP is currently pegged at 0.00%. The stock’s Most Accurate estimate of 3 cents comes in line with the Zacks Consensus Estimate.

We only caution against stocks with a Zacks Ranks #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions. (Read more: Axon Enterprise Q1 Earnings: Stock to Disappoint?)

ScanSource, Inc. (NASDAQ:SCSC) is expected to report third-quarter fiscal 2017 (ended Mar 31, 2017) results on May 9, after the market closes. The company recorded a negative average earnings surprise of 5.49% over the last four quarters. However, our proven model predicts that the company would beat on earnings this quarter. The stock not only carries a favorable Zacks Rank #2, but also has a positive Earnings ESP of 4.55%. The stock’s Most Accurate estimate of 69 cents is higher than the Zacks Consensus Estimate of 66 cents. Notably, there has been no change in the quarter estimate over the last seven days.

Zacks' 2017 IPO Watch List

Before looking into the stocks mentioned above, you may want to get a head start on potential tech IPOs that are popping up on Zacks' radar. Imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the current scoop on 5 that may go public at any time.

One has driven from 0 to a $68 billion valuation in 8 years. Four others are a little less obvious but already show jawdropping growth. Download this IPO Watch List today for free >>