Facebook Twitter LinkedIn Google+


Markets Chew into Earnings; Weak Outlooks and Revenues Weigh

Originally published: 08.17.15 by Margot Crabtree


Investors cast a wary eye on second quarter corporate results, concerned that earnings per share increases often had much more to do with shaving costs and share repurchases rather than organic growth.

As our trading session ended August 14, 2015, the surprise devaluation of the Chinese yuan, combined with slow growth in Europe caused turbulence. The Commerce Department reported that new home sales fell 6.8 percent in June.

The National Association of Realtors said that sales of previously-owned homes was up 3.2 percent in June, the highest rate in eight years. The median home price has climbed 6.5 percent in the last 12 months.

Durable goods jumped 3.4 percent in June, but the Commerce Department said that a key figure representing business investment increased at a more temperate rate. The Conference Board said that its July consumer confidence index fell to 90.9, from 99.8 in June, and September's 89.

The University of Michigan's consumer sentiment index fell in July to 93.1 from the earlier 96.1. Manufacturing was down in the U.S.: the Institute for Supply Management's manufacturing index fell to 52.7 in July from 53.5 the month before. Economists expected no change.

"The market is being cautious, waiting for a little more direction," said


Ian Kerrigan, global investment specialist at J.P. Morgan Private Bank. "There are people who are taking some gains out there and waiting a little while to see what happens with Greece, what happens with China, what happens with the Fed."

Exchange
Symbol
Company Name
Price
8/15/14
Price
7/15/14
Net
Change
PercentChange
52-Week
High
52-Week
Low
Shares
Outstanding
Market
Capitalization
NASD AAON AAON, Inc. 23.23 22.52 0.71 3.15% 25.17 16.78 54230 1259762.9
NYSE ABB ABB Ltd. 20.02 20.52 -0.50 -2.44% 23.66 19.14 2220000 44444400
NYSE ARG Airgas, Inc. 106.94 103.99 2.95 2.84% 119.00 96.52 74650 7983071
NYSE AOS AO Smith Corp. 70.29 67.96 2.33 3.43% 77.43 44.60 75730 5323061.7
NYSE FIX Comfort Systems USA, Inc. 29.33 22.98 6.35 27.63% 30.32 12.63 37390 1096648.7
NYSE DOV Dover Corp. 63.95 65.81 -1.86 -2.83% 90.65 62.62 156460 10005617
NASD ELON Echelon Corp. 0.54 0.71 -0.17 -23.94% 2.74 0.48 44100 23814
NYSE DD E. I. DuPont de Nemours & Co. 53.86 59.00 -5.14 -8.71% 76.59 52.36 904840 48734682.4
NYSE EME EMCOR Group, Inc. 47.91 48.31 -0.40 -0.83% 48.89 38.68 62800 3008748
NYSE EMR Emerson Electric Co. 49.60 53.48 -3.88 -7.26% 65.94 47.83 657140 32594144
NYSE FCAU Fiat Chrysler 15.59 14.83 0.76 5.12% 17.08 8.54 1290000 20111100
NYSE F Ford Motor Co. 14.78 14.75 0.03 0.20% 17.87 13.26 3900000 57642000
NYSE GM General Motors Co. 31.49 31.43 0.06 0.19% 38.99 28.82 1580000 49754200
NYSE HON Honeywell International, Inc. 106.08 103.84 2.24 2.16% 107.41 82.89 781760 82929100.8
NASD HDSN Hudson Technologies, Inc. 3.21 3.22 -0.01 -0.31% 4.80 2.72 32620 104710.2
NYSE IR Ingersoll-Rand Plc 61.55 67.37 -5.82 -8.64% 70.93 52.47 265350 16332292.5
NYSE JCI Johnson Controls, Inc. 45.50 48.67 -3.17 -6.51% 54.52 38.60 654070 29760185
NYSE LII Lennox International Inc. 125.05 107.57 17.48 16.25% 125.17 72.91 45030 5631001.5
NYSE LXU LSB Industries, Inc. 25.97 39.07 -13.10 -33.53% 47.33 21.87 22790 591856.3
NYSE MTW Manitowoc Co., Inc. 17.22 18.30 -1.08 -5.90% 29.89 15.53 136590 2352079.8
NYSE MLI Mueller Industries, Inc. 32.08 34.33 -2.25 -6.55% 37.18 27.10 56990 1828239.2
NYSE NWL Newell Rubbermaid, Inc. 43.50 41.91 1.59 3.79% 44.22 31.14 267800 11649300
OTC NSANY Nissan Motor Co. Ltd. 18.78 19.72 -0.94 -4.77% 21.75 16.65 2100000 39438000
NASD NTK Nortek, Inc. 74.63 83.60 -8.97 -10.73% 89.92 70.73 16270 1214230.1
NASD OFLX OmegaFlex, Inc. 32.83 37.60 -4.77 -12.69% 39.95 17.01 10090 331254.7
NYSE PH Parker-Hannifin Corp. 113.67 113.04 0.63 0.56% 133.41 99.82 138680 15763755.6
NYSE RBC Regal-Beloit Corp. 72.52 68.90 3.62 5.25% 81.36 62.15 44810 3249621.2
NYSE ROK Rockwell Automation 116.17 122.89 -6.72 -5.47% 127.05 98.55 134110 15579558.7
OTC SIEGY Siemens Aktiengesellschaft  106.60 102.60 4.00 3.90% 128.25 95.27 822420 87669972
NYSE SPW SPX Corp.  65.59 67.68 -2.09 -3.09% 106.26 62.18 41100 2695749
NYSE TXN Texas Instruments 50.64 49.49 1.15 2.32% 59.99 41.47 1030000 52159200
NYSE UTX United Technologies Corp. 98.70 111.25 -12.55 -11.28% 124.45 96.65 890600 87902220
NYSE WSO Watsco, Inc. 130.63 124.40 6.23 5.01% 131.10 84.28 27570 3601469.1

 

The HVACR Business Stock Index slid 32.84 points, or 2.71 percent, in tandem with the national markets, with the components of the index making huge swings in both directions. Declining issues outweighed advancing issues by an 18-to-15 count.

LSB Industries fell 13.10 points, or 33.53 percent after missing estimates for the quarter ended June 30, 2015. LXU reported net income of $417,000, or $0.02 per share, compared to net income of $11.1 million, or $0.47 per share last year.

Revenue was down 9.4 percent, to $182.7 million. The consensus estimate from analysts polled by Capital IQ was $0.35 per share and $195.99 million in revenue. LXU ended at 25.97, and was the top dollar and percentage loser.

Lennox soared 17.48 points, or 16.25 percent after beating earnings estimates for the second quarter. LII posted net income of $81.2 million, or $1.78 per share, compared with $73.9 million, or $1.49 per share last year.

Adjusted for one-time items, Lennox earned $1.84 per share. Sales were $992.5 million, from $960.7 million a year ago. Analysts polled by Zacks expected earnings of $1.82 per share and sales of $993.9 million. LII ended at 125.05, and was the top dollar gainer.

United Technologies stumbled 12.55 points, or 11.28 percent after beating on earnings but missing on revenues. UTX earned net income of $1.54 billion, or $1.73 per share, compared to net income of $1.68 billion, or $1.84 per share last year. Sales were $16.33 billion. Analysts polled by Zacks expected $1.71 per share and sales of $16.66 billion. United Technologies CEO Greg Hayes cited the slowing economies in Europe and China. UTX closed at 98.70.


Margot Crabtree is president of Trade Trends, Inc., a financial data services provider. She has been offering market analysis with customized stock indices and financial commentaries since 1999. For additional information, visit  www.tradetrendsonline.com

 




About Margot Crabtree

Margot is president of Trade Trends, Inc., a financial data services provider. She has been offering market analysis with customized stock indices and financial commentaries since 1999. For additional information, visit tradetrendsonline.com.

 

 




Articles by Margot Crabtree

Market Turbulence Dominates Session

The HVACR Business Stock Index lost 90.83 points, or 6.38 percent, and ended at 1332.91, its lowest close in over two years. Declining issues dominated advancing issues by a 9-to-1 margin.
View article.

 

Stock Index Recovers from Last Month’s Swoon

The HVACR Business Stock Index inched down 3.01 points, or 0.21 percent, closing at 1423.73; the largest four companies in the index ended in negative terrain. However, advancing squeezed by declining issues by a 15-to-14 count.
View article.

 

Markets Tumble as Trade Wars Bite

The HVACR Business Stock Index tumbled, shedding 136.55 points, or 8.73 percent and closing at 1426.74, the lowest close since April 2017. Declining issues shut out advancing issues, with all thirty companies posting in negative terrain.
View article.

 

Stocks Push Higher Despite Trade Concerns

The HVACR Business Stock Index rose 52.22 points, or 3.46 percent, and ended at 1563.29. Advancing issues dominated declining issues by a 5-to-1 margin.
View article.

 

Stocks End Mixed on Earnings and Tariff Talk

The HVACR Business Stock Index slid 27.90 points, or 1.81 percent, and closed at 1511.08. However, advancing issues outpaced declining issues at a 17-to-14 count.
View article.