SPX Technologies (SPXC) Earnings Report: What to Expect

SPX Technologies (SPXC) is set to release its earnings report for the quarter that ended in September 2024 on October 30, 2024. Analysts on Wall Street anticipate that the company will show a year-over-year increase in earnings, driven by higher revenue figures. However, what is crucial for investors is how these actual results stack up against the estimates because they will significantly influence SPX's near-term stock price movement.

The earnings report could result in a stock price increase if SPX Technologies manages to surpass the key earnings expectations. Conversely, if the results fall short of expectations, the stock could experience a decline.

While the management's comments during the earnings call regarding current business conditions will play a pivotal role in shaping future earnings expectations and stock price, it's advantageous to evaluate the potential for a positive earnings surprise.

Zacks Consensus Estimate

The current consensus among analysts suggests that SPX Technologies is expected to report earnings of $1.38 per share, reflecting a notable year-over-year increase of 30.2%. Additionally, revenue expectations stand at approximately $500.23 million, marking an 11.5% rise compared to the same quarter last year.

Estimate Revisions Trend

Interestingly, the consensus EPS estimate has not changed over the past 30 days, indicating a stable view among analysts during this timeframe. However, it's important to remember that an overall change may not fully represent individual analysts' perspectives.

Earnings Whisper

Before an earnings release, revisions in estimates can provide insights about the business's conditions during the reporting period. The Zacks Earnings ESP (Expected Surprise Prediction) model plays a vital role here. It assesses the Most Accurate Estimate against the Zacks Consensus Estimate for the quarter. The Most Accurate Estimate is the latest EPS prediction, capturing the most recent insights from analysts.

A positive or negative Earnings ESP reading suggests potential deviations from the consensus estimate. However, our research highlights that positive readings correlate more strongly with actual earnings surprises.

Specifically, a positive Earnings ESP coupled with a Zacks Rank of #1 (Strong Buy), #2 (Buy), or #3 (Hold) reliably indicates an earnings beat, occurring nearly 70% of the time. A negative Earnings ESP does not necessarily predict an earnings miss but suggests greater uncertainty regarding potential surprises.

How Have the Numbers Shaped Up for SPX Technologies?

For SPX Technologies, the Most Accurate Estimate aligns with the Zacks Consensus Estimate, resulting in an Earnings ESP of 0%. Despite this, the stock currently holds a Zacks Rank of #2, indicating a buy recommendation. However, this combination of factors makes it challenging to determine if SPX Technologies will beat the consensus EPS estimate definitively.

Does Earnings Surprise History Hold Any Clue?

Looking at SPX Technologies' past earnings performance can help gauge expectations for upcoming results. In the previous quarter, analysts predicted earnings of $1.26 per share, while the company reported earnings of $1.42, leading to a positive surprise of 12.7%. In total, over the last four quarters, SPX Technologies has outperformed consensus EPS estimates three times.

Bottom Line

It is important to recognize that an earnings beat or miss is not the sole determinant of stock price movement. Many stocks might decline even after reporting positive earnings due to other disappointing factors. Conversely, some stocks may rise despite an earnings miss if there are positive catalysts at play.

That said, investing in stocks with expected earnings beats can improve the chances of success. Therefore, evaluating SPX Technologies based on its Earnings ESP and Zacks Rank before the earnings report is advisable. Explore our Earnings ESP Filter to find the best stocks to consider before results are announced.

In summary, SPX Technologies may not be positioned strongly for an earnings beat this quarter. Investors should also consider external factors before making investment decisions related to this stock ahead of its earnings release.

Keep up with upcoming earnings announcements using the Zacks Earnings Calendar.

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