Broadwind Gears Up to Report Q2 Earnings: What to Expect

Broadwind, Inc. BWEN is expected to release second-quarter 2024 results on Aug 13, after market close.

The company’s earnings beat estimates in each of the trailing four quarters, delivering an average earnings surprise of 95.5%. In the last reported quarter, its earnings of 7 cents per share surpassed the Zacks Consensus Estimate of a loss of 7 cents per share by 200%.

Let’s see how things have shaped up for Broadwind this earnings season.

Factors Likely to Influence Results

The Industrial Solutions segment is expected to witness higher revenues on the back of increased gas turbine projects and rising shipments of new and aftermarket gas turbine content. Also, global electricity demand growth has been aiding the segment.

Broadwind’s second-quarter performance is likely to have been aided by an increased order level, driven by strong activity levels from the natural gas turbine market. The company’s focus on expanding its portfolio of industrial fabrications to include new products and increased customer interest from the defense industry are expected to have driven its revenues.

Broadwind has been taking actions to align its cost structure with the current demand environment, which is likely to have aided its margin performance.

However, decreasing demand for wind towers is likely to have impacted the Heavy Fabrications segment’s performance. Reduced shipments for industrial, mining and O&G customers are likely to affect the Gearing segment’s results.

BWEN has considerable exposure to overseas markets. Given its substantial international operations, foreign currency headwinds are likely to have marred its profitability.

The consensus estimate for revenues is pegged at $37 million, indicating a decrease of 26.9% from the year-ago quarter’s number. The consensus estimate for earnings is pegged at breakeven, indicating a decline from earnings of 7 cents per share in the year-earlier quarter.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for BWEN this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as elaborated below.

Earnings ESP: BWEN has an Earnings ESP of 0.00% as both the Most Accurate Estimate and Zacks Consensus Estimate are pegged at breakeven.

Zacks Rank: BWEN presently carries a Zacks Rank of 3.

Performance of Other Industrial Companies

Pentair plc PNR reported second-quarter adjusted earnings per share of $1.22, which beat the Zacks Consensus Estimate of $1.15. The reported figure also improved 18% from the year-ago quarter.

Net sales rose 1.6% year over year to $1.1 billion. PNR’s top line outpaced the Zacks Consensus Estimate of $1.09 billion. 

Crown Holdings, Inc. CCK reported second-quarter adjusted earnings per share of $1.81, which beat the Zacks Consensus Estimate of $1.59. The bottom line improved 8% year over year.

Net sales totaled $3.04 billion, down 2.2% from the year-ago quarter. The top line missed the Zacks Consensus Estimate of $3.06 billion.

A Stock to Consider

Here is a company within the broader Industrial Products sector, which, according to our model, has the right combination of elements to beat on earnings in this reporting cycle.

Deere & Company DE has an Earnings ESP of +0.18% and a Zacks Rank of 3 at present. It is slated to release third-quarter fiscal 2024 (ended July 2024) results on Aug 15.

Deere’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 16%.

To read this article on Zacks.com click here.