All posts from Zacks
Zacks in Our Research. Your Success.,

Milacron (MCRN) to Report Q2 Earnings: Is a Beat in Store?

Milacron Holdings Corp. MCRN is scheduled to report second-quarter 2017 results before the market opens on Jul 27.

Last quarter, the company’s earnings came in line with the Zacks Consensus Estimate. Milacron has surpassed the Zacks Consensus Estimate in two of the trailing four quarters, generating an average positive surprise of 9.23%.

Let’s see how things are shaping up prior to this announcement.

Milacron Holdings Corp. Price and EPS Surprise


Milacron Holdings Corp. Price and EPS Surprise | Milacron Holdings Corp. Quote

Factors to Consider

Milacron believes its second-quarter is pitted against a tough comparison. The company expects the quarter to be flat with the prior year on both sales and profit. Global economic uncertainty and pricing pressure remain headwinds for its second-quarter performance.

Nevertheless, Milacron anticipates to gain from rising demand for a diverse range of finished plastic products. Geographic expansion of certain product lines, consistent penetration of hot runners, organizational redesign and cost-reduction initiatives, as well as strong order rates, will drive results in the quarter to be reported.

Earnings Whispers

Our proven model does not conclusively show that Milacron is likely to beat estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is not the case here, as you will see below:

Zacks ESP: The Earnings ESP for Milacron is 0.00%. This is because the Most Accurate estimate and the Zacks Consensus Estimate are both pegged at 41 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Milacron currently has a Zacks Rank #2 (Buy) which increases the predictive power of ESP. However, the company’s ESP of 0.00% makes surprise prediction difficult.

Conversely, we caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

Share Price Performance

The company’s share price has underperformed its industry’s performance over the last one year. The current rate of return for the industry is 25.2%, while that of Milacron is 22.9%.

Stocks That Warrant a Look

Here are some stocks you may want to consider, as according to our model thesehave the right combination of elements to post an earnings beat this quarter.

AGCO Corporation AGCO, with an Earnings ESP of +2.89% and a Zacks Rank #1. You can see the the complete list of today’s Zacks #1 Rank stocks here.

AptarGroup, Inc. ATR, with an Earnings ESP of +1.03% and a Zacks Rank #2.

Sealed Air Corporation SEE, with an Earnings ESP of +2.78% and a Zacks Rank #3.

More Stock News: This Is Bigger than the iPhone!

It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.

Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020. Click here for the 6 trades >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Sealed Air Corporation (SEE): Free Stock Analysis Report
AptarGroup, Inc. (ATR): Free Stock Analysis Report
AGCO Corporation (AGCO): Free Stock Analysis Report
Milacron Holdings Corp. (MCRN): Free Stock Analysis Report
To read this article on click here.