Can Industrial ETFs Gain Despite Mixed Q1 Earnings?

man fixing computer hub

The industrial sector, which faced disruption in global supply chains and factory closedowns, is expected to rebound on recovery from the coronavirus-led slump. The introduction of a coronavirus vaccine and addition of stimulus are expected to drive demand and economic activities in the sector. Moreover, increasing optimism about the space, the United States is now witnessing a decline in daily new coronavirus infection cases.

Moving on, the Fed’s continued dovish stance is increasing chances of faster U.S. economic growth recovery from the coronavirus pandemic-led slowdown. The central bank has decided to maintain rates near zero until 2023, at least. Moreover, the central bank raised its economic growth outlook considering the vaccine and stimulus optimism and it also expects higher inflation this year. Thus, all these factors are creating a favorable environment for players in the space.

Against this backdrop, we take a look at some big industrial earnings releases and see if these can leave an impact on ETFs exposed to the space.

Inside Q1 Earnings

On April 27, General Electric Company’s GE first-quarter 2021 adjusted earnings were 3 cents per share, outpacing the Zacks Consensus Estimate of 2 cents. Moreover, the bottom line rose 50% from the prior-year quarter’s 2 cents per share as lower costs and expenses provided support to offset the decline in revenues. Consolidated revenues totaled $17.12 billion, reflecting a year-over-year drop of 12.2%. Poor sales performance in Industrial affected the quarterly results, partially offset by improvements in GE Capital. Also, the company’s top line missed the Zacks Consensus Estimate of $17.58 billion.

On April 27, 3M Company’s MMM first-quarter 2021 earnings and sales outpaced the consensus estimate by 23.1% and 5.9%, respectively. The company’s adjusted earnings in the reported quarter were $2.77 per share. On a year-over-year basis, the bottom line rose 26.5%. In the reported quarter, 3M’s net sales totaled $8.85 billion, reflecting an increase of 9.6% from the year-ago quarter.

1 2 3
View single page >> |

Disclaimer: Neither Zacks Investment Research, Inc. nor its Information Providers can guarantee the accuracy, completeness, timeliness, or correct sequencing of any of the Information on the Web ...

more
How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.