The Q3 earnings cycle is well on track with nearly 23.2% of the index’s total membership (as of Oct 21, 2016), that collectively account for almost 30% of the index’s total market capitalization, reporting their numbers.
Per the Zacks Earnings Trends report, Q3 is likely to be the first quarter to record positive earnings growth after five consecutive quarters of decline. Total earnings are likely to be up 0.1% on 1.5% higher revenues.
However, what is more alarming is that about seven of the 16 sectors are expected to witness earnings decline in the quarter under review, with the focus being on the Autos, Oil/Energy and Transportation sectors.
Industrial Products sector, which covers protection stocks, will likely register earnings growth of 3.7% and 0.3% revenue decline.
Among the Protection stocks slated to report on Oct 27, let’s take a look at how two major security services providers are placed ahead of their third-quarter 2016 releases.
Allegion plc (NYSE:ALLE) is a security solution provider for homes and businesses.
In spite of the company’s Zacks Rank #2 (Buy), our proven model does not conclusively show a beat for the company this quarter as it has an Earnings ESP of 0.00%.
Last quarter, the company posted a positive earnings surprise of 11.24%. The company reported positive earnings surprises in three of the past four quarters, with an average beat of 11.58%. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
For the third quarter, the Zacks Consensus Estimate for earnings is pegged at 95 cents a share, reflecting an increase of 3.3% year over year, while the consensus for revenues is at $586.9 million, implying 7.8% year-over-year growth (read more: What's in Store for Allegion this Earnings Season?).
MSA Safety Inc. (NYSE:MSA) is engaged in the development, manufacture and supply of safety products that protect people and facility infrastructure.
Out proven model doesn’t predict a beat for the company as it has an earnings ESP of 0.00% and a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Last quarter, the company posted a positive earnings surprise of 9.72%. The company reported positive earnings surprises in all of the trailing four quarters, with an average beat of 9.28%.
For the third quarter, the Zacks Consensus Estimate for earnings is pegged at 64 cents a share, reflecting an increase of 8.9% year over year, while the consensus for revenues is at $283 million, implying 3.2% year-over-year growth.
Zacks' Best Investment Ideas for Long-Term Profit
Today you can gain access to long-term trades with double and triple-digit profit potential rarely available to the public. Starting now, you can look inside our stocks under $10, home run and value stock portfolios, plus more. Want a peek at this private information? Click here >>
MSA SAFETY INC (MSA): Free Stock Analysis Report
ALLEGION PLC (ALLE): Free Stock Analysis Report
Original post
Zacks Investment Research