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
|
Price
|
Net
|
PercentChange |
52-Week
|
52-Week
|
Shares
|
Market
|
| 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.