Industrial Sector Earnings Review for Chart Industries, Commercial Vehicle, Deere, and Supreme Industries

LONDON, UK / ACCESSWIRE / September 27, 2016 / Active Wall St. announces its coverage of top earnings surprises within the Industrial Sector. Earnings for industrial companies have been weak amid a multiyear global slowdown in manufacturing. Industrial products stocks in the S&P 500 Group reported a 1.5% drop in earnings and 5.6% fall in revenue in Q2 2016. Register with us now for your free membership and blog access at: http://www.activewallst.com/register/.

Today, AWS is promoting its earnings surprise review coverage on Chart Industries Inc. (NASDAQ: GTLS), Commercial Vehicle Group Inc. (NASDAQ: CVGI), Deere & Co. (NYSE: DE), and Supreme Industries Inc. (NYSE: STS). Get all of our free blog coverage and more by clicking on the link below:

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Factors Impacting Industrials

Manufacturers have struggled for the past two year with subdued growth in the global economy, the strong dollar, and reluctance among U.S. businesses to spend more on machinery, computer and other equipment. These factors have dragged down factory output 0.4 % from a year ago even though interest rates have remained historically low.

U.S. factory production declined in August 2016 amid a reduction seen in appliances, home electronics, and machineries, thereby dashing hopes for a rebound in the manufacturing sector based on the previous gains in the last two months. The Federal Reserve said that factory production dropped 0.4% in August 2016, after an increase of 0.4 % in July.

The strength of the U.S. dollar in 2014 and 2015 made U.S. exports costlier, while lowering the price of competing imports. In the first half of 2016, the dollar has remained almost flat against most major currencies. The job market has also showed weakness in Q2 2016, with average jobs increasing in the quarter by 153,000 per month, down from 209,000 in Q1 2016. Furthermore, unfavorable foreign currency movements and economic uncertainties worldwide led to weak export demand for the U.S.-manufactured machinery.

As per data from the U.S. Census Bureau, export demands for U.S. machinery in H1 FY16 declined 5.7% on y-o-y basis; a 12.4% decline was reported for shipments of farm machinery; while construction dropped 23.1% and mining machinery slumped 45.8%. New machinery orders were down 5.3%, while order backlog decreased 7.7%. U.S. utility output fell 1.4 % in August after a strong gain in the previous two months.

Q3 Outlook

As per FactSet data, the Industrials sector is expected to report the second largest y-o-y decline in Q3 2016 earnings (-7.8%). However, we are starting to see a pickup in industrial activities, at least in the U.S., and stabilizing oil prices. With these positive elements, we can expect the sector to improve going forward.

Top Earnings Surprises

Although the Industrial Sector earnings were subdued, there were a few companies that surprised the market with strong performance. These are the four top performers:

Chart Industries Inc.

Earnings Surprise:

On July 28th, 2016, Chart Industries reported Q2 2016 net income of $21.2 million. On a per-share basis, the Garfield Heights, Ohio-based company said it had earnings of $0.68 per share. Excluding restructuring costs, the company reported earnings of $0.72 per share, obliterated Wall Street’s expectations for earnings of $0.13 per share. The manufacturer of industrial gas infrastructure and processing equipment posted revenue of $247.1 million in the period, which also beat Street’s forecasts of $222.8 million. Gross profit margin jumped to 35.2% from 27.7% in Q2 2015, as the company’s cost-cutting efforts continue to pay off.

Stock Performance:

At the closing bell, on Monday, September 26, 2016, Chart Industries’ stock was slightly down 0.18%, ending the trading session at $30.99. A total volume of 423.66 thousand shares were traded at the end of the day, which was higher than the 3-month average volume of 319.99 thousand shares. In the last one month and previous three months, shares of the company have advanced 2.14% and 40.48%, respectively. Moreover, the stock jumped 72.55% since the start of the year.

Commercial Vehicle Group Inc.

Earnings Surprise:

On August 3rd, 2016, Commercial Vehicle Group reported Q2 2016 income of $2.7 million. On a per share basis, the New Albany, Ohio-based company said it had net income of $0.90 per share. Earnings, adjusted for one-time gains and costs, were $0.10 per share, outperforming expectations of adjusted earnings of $0.40 per share. The supplier of products for heavy duty trucks posted revenue of $178.3 million in the period compared to $217.6 million in the prior-year period.

Stock Performance:

On Monday, September 26, Commercial Vehicle Group’s shares slipped 2.83%, finishing the day at $5.50 with volume of 194.15 thousand shares exchanging hands by the close of the trading session. The company’s stock price advanced 1.66% in the last month and 16.28% in the past three months. Furthermore, on a year to date basis and in the previous six months, the stock surged 99.28% and 114.84%, respectively. Shares of the company have a PE ratio of 29.41.

Deere & Co.

Earnings Surprise:

On August 21st 2016, Deere & Co., the world’s biggest farm equipment manufacturer, reported net income of $488.8 million, or $1.55 per share, compared to the year-ago quarter where it earned $511.6 million, or $1.53 per share. Its earning numbers easily topped consensus estimates of $0.61 per share, driven by a 12.2% decline in costs, which fell to $6.02 billion from $6.86 billion. The company’s revenue for Q3 FY16 came in at $5.86 billion, down 14% from $6.84 billion a year ago; missing estimates by $230 million.

Stock Performance:

Deere’s stock is trading slightly up 0.29%, closing Monday’s session at $83.58 on volume of 3.41 million shares. The company’s shares gained 11.24% since the beginning of the year. Additionally, the stock has advanced 4.50% and 4.60% in the last three months and the past six months. The company’s shares are trading a PE ratio of 16.73 and have a dividend yield of 2.87%.

Supreme Industries Inc.

Earnings Surprise:

On July 22, 2016, Supreme Industries reported that consolidated net sales increased 12.4% to $92.9 million in Q2 2016 compared to $82.6 million in Q2 2015. Net income in the quarter was $8.3 million, up 90.9% from $4.3 million in the same quarter of the prior year. Diluted earnings per share rose 84.6% to $0.48 per share, up from $0.26 per share in the second quarter of 2015. Gross margin for Q2 2016 widened to 24.1% compared to 18.7% in Q2 2015, driven by higher mix of retail sales and better overhead absorption, versus the prior year.

Stock Performance:

Supreme Industries’ share price finished yesterday’s trading session at $18.23, declining 3.03%. A total volume of 242.88 thousand shares exchanged hands. The stock has surged 46.81% and 108.34% in the last three months and past six months, respectively. Furthermore, since the start of the year, shares of the company has rallied 166.13%. The stock is trading at a PE ratio of 16.76 and has a dividend yield of 0.77%.

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