Modine (MOD) to Report Q3 Earnings: Here’s What to Expect

Modine Manufacturing Company MOD is slated to release third-quarter fiscal 2024 results on Jan 31, after the closing bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share and revenues is pegged at 57 cents and $586.1 million, respectively.

For the third quarter, the consensus estimate for MOD’s earnings per share has moved down by 5 cents in the past 90 days. Its bottom-line estimates imply growth of 18.8% from the year-ago reported number.

The Zacks Consensus Estimate for Modine’s quarterly revenues suggests a year-over-year rise of 4.7%.

Over the trailing four quarters, MOD surpassed the consensus estimate on each occasion, the average surprise being 46.99%. This is depicted in the graph below:

Modine Manufacturing Company Price and EPS Surprise

Modine Manufacturing Company price-eps-surprise | Modine Manufacturing Company Quote

Q2 Highlights

In second-quarter fiscal 2024, the company reported adjusted quarterly earnings of 89 cents per share, surpassing the Zacks Consensus Estimate of earnings of 64 cents. This compares to the adjusted earnings of 48 cents per share reported a year ago. Modine posted revenues of $620.5 million in the quarter, outpacing the Zacks Consensus Estimate of $613 million and rising 7% year over year.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for Modine in third-quarter fiscal 2024, as it does not have the right combination of the two key ingredients. A positive Earnings ESP combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here.

Earnings ESP: MOD has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate is in line with the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: It currently carries a Zacks Rank #3.

Things to Note

Modine recently launched a new electric infrared line that can be used in a wide variety of commercial and residential applications and a new AmpDawg. The product launches are likely to have fueled the company’s top-line growth in the quarter to be reported.

In the second quarter of fiscal 2024, Modine reported an adjusted EBITDA of $81.2 million, up from $30.1 million recorded in the previous year’s quarter. For full-year 2024, Modine expects net sales to rise in the range of 6-11% and adjusted EBITDA of $285-$300 million, an increase of 34-41% over the prior year. An upbeat full-year forecast is likely to have bolstered the result of Modine’s fiscal third quarter.

On the flip side, the company projects a dip in the third quarter’s data center volume. It expects a headwind of $40-$50 million from divestitures of the three businesses in Germany that produce products for internal combustion diesel and gasoline engines for the European automotive market. These headwinds are likely to adversely impact the fiscal third-quarter results. Moreover, its SG&A increased $10.1 million to $68.9 million in the fiscal second quarter due to higher compensation-related expenses. Rising expenses are likely to negatively impact the upcoming results.

Stocks With the Favorable Combination

Here are a few players from the auto space that, according to our model, have the right combination of elements to post an earnings beat this time around.

Lear Corporation LEA will release fourth-quarter 2023 results on Feb 6. The company has an Earnings ESP of +5.51% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Lear’s to-be-reported quarter’s earnings and revenues is pegged at $3.05 per share and $5.64 billion, respectively. LEA surpassed earnings estimates on each occasion, the average surprise being 9.10%.

Ford Motor Company F will release fourth-quarter 2023 results on Feb 6. The company has an Earnings ESP of +4.93% and a Zacks Rank #3.

The Zacks Consensus Estimate for Ford’s to-be-reported quarter’s earnings and revenues is pegged at 12 cents per share and $36.39 billion, respectively. F surpassed earnings estimates on two out of the trailing four quarters and missed twice, the average surprise being 20.30%.

BorgWarner Inc. BWA will release fourth-quarter 2023 results on Feb 8. The company has an Earnings ESP of +0.88% and a Zacks Rank #3.

The Zacks Consensus Estimate for BorgWarner’s to-be-reported quarter’s earnings and revenues is pegged at 90 cents per share and $3.59 billion, respectively. BWA surpassed earnings estimates on three out of the trailing four quarters and missed once, the average surprise being 10.93%.

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