Tetra Tech's Q4 Earnings & Revenues Surpass Estimates, Rise Y/Y

U.S. stock futures were higher this morning, with the Dow futures gaining more than 50 points on Thursday.

Shares of Advance Auto Parts, Inc. fell sharply in today's pre-market trading after the company reported downbeat quarterly results.

Advance Auto Parts reported a quarterly loss of 4 cents per share, compared to market estimates of 49 cents per share. The company reported quarterly sales of $2.15 billion which missed the analyst consensus estimate of $2.65 billion.

Advance Auto Parts shares dipped 9.6% to $37.00 in the pre-market trading session.

Here are some other stocks moving lower in pre-market trading.

• Harrow, Inc. declined 25.8% to $38.45 in pre-market trading after the company reported worse-than-expected third-quarter sales results.
• Ibotta, Inc. shares fell 22.9% to $57.75 in pre-market trading after the company reported quarterly results.
• Taysha Gene Therapies, Inc. fell 10.8% to $1.9700 in pre-market trading following third-quarter results.
• Super Micro Computer, Inc. fell 10.1% to $18.27 in today's pre-market trading. Super Micro Computer shares fell 6% on Wednesday after the company announced it was unable to file its quarterly report for the period ending Sept. 30 in a timely manner.
• Tetra Tech, Inc. fell 7% to $44.06 in pre-market trading after the company reported worse-than-expected fourth-quarter EPS results.
• ZEEKR Intelligent Technology Holding Limited fell 6.3% to $27.30 in pre-market trading following third-quarter results.
• Mercurity Fintech Holding Inc. fell 5.9% to $5.13 in pre-market trading after jumping 61% on Wednesday.

Now Read This:

• US Stocks Settle Mixed Following Inflation Data: Investor Sentiment Improves, But Fear Index Remains In ‘Greed’ Zone

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Graco Inc.’s GGG financial stability is challenged by weakness in the Industrial and Process segments. Elevated costs are putting a strain on the bottom line.

Headquartered in Minneapolis, MN, Graco engages in designing, manufacturing and marketing equipment and systems used to measure, move, control, spray and dispense fluid as well as powder materials. The company offers equipment solutions for tough-to-handle materials with high viscosities, abrasive or corrosive properties and multiple component materials that demand precise ratio control.

GGG currently carries a Zacks Rank #4 (Sell). In the past year, the stock has gained 11.2% compared with the industry’s 32.8% growth.

Business Weakness: Graco is experiencing softness in the Industrial segment, due to decline in finishing system sales in the Asia-Pacific region. A decrease in demand for the company’s semiconductor, industrial lubrication and process transfer equipment products owing to a weakness in the industrial sector is hampering the Process segment’s performance. The company expects organic net sales to decline in low single-digit on a constant-currency basis for 2024.

High Costs: Rising costs pose a threat to the company’s bottom line. In 2023, Graco’s selling, marketing and distribution costs increased 3.9% from the year-ago period. General and administrative expenses jumped 11.5% in the same period. Operating expenses increased 6% in 2023 due to incremental share-based compensation and increased spending on product development. The trend continued in the first nine months of 2024, with selling, marketing and distribution costs, and general and administrative expenses increasing 3.4% and 6.3%, respectively, year over year. The metrics, as a percentage of net sales, increased 90 basis points each, year over year.

Forex Woes: Graco has operations in multiple nations. International expansion exposes it to risks arising from unfavorable movement in foreign currencies, geopolitical issues and other headwinds. In the first nine months of 2024, foreign currency translation had a negative impact of 1% on the Asia Pacific region’s revenues.

Stocks to Consider

Some better-ranked companies are discussed below.

Graham Corporation GHM currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

GHM delivered a trailing four-quarter average earnings surprise of 101.9%. In the past 60 days, the Zacks Consensus Estimate for Graham’s fiscal 2025 earnings has increased 8.4%.

Crane Company CR presently carries a Zacks Rank #2 (Buy). The company delivered a trailing four-quarter average earnings surprise of 7.6%.

In the past 60 days, the consensus estimate for CR’s 2024 earnings has increased 1.2%.

Kadant Inc. KAI presently carries a Zacks Rank of 2. It has a trailing four-quarter average earnings surprise of 17.2%.

The Zacks Consensus Estimate for KAI’s 2024 earnings has increased 1.8% in the past 60 days.

Zacks Investment Research

December S&P 500 E-Mini futures (ESZ24) are up +0.14%, and December Nasdaq 100 E-Mini futures (NQZ24) are up +0.01% this morning as investors awaited crucial U.S. producer inflation data, remarks from Federal Reserve Chair Jerome Powell, and an earnings report from entertainment giant Disney.

In yesterday’s trading session, Wall Street’s major indexes closed mixed. Rivian Automotive climbed over +13% after Volkswagen AG raised its investment in the electric vehicle maker by 16% to $5.8 billion. Also, Spotify Technology surged more than +11% after offering above-consensus Q4 guidance for operating income and monthly active users. In addition, Charter Communications gained over +3% after agreeing to buy Liberty Broadband in an all-stock transaction. On the bearish side, Super Micro Computer slid more than -6% and was the top percentage loser on the Nasdaq 100 after announcing that it cannot file its quarterly report on Form 10-Q for the period ended September, as it requires time to appoint a new auditor.

The U.S. Bureau of Labor Statistics report released on Wednesday showed that consumer prices rose +0.2% m/m in October, in line with expectations. On an annual basis, headline inflation accelerated to +2.6% in October from +2.4% in September, in line with expectations. Also, the October core CPI, which excludes volatile food and fuel prices, remained unchanged from September at +3.3% y/y, right on expectations.

“A hotter-than-expected inflation number could have convinced the Fed to stand pat at its next meeting,” said Seema Shah at Principal Asset Management. “A December cut is still in the cards.”

Minneapolis Fed President Neel Kashkari stated that, given the headline numbers from the recent consumer price report, he feels assured that inflation “is headed in the right direction.” Also, Dallas Fed President Lorie Logan said that although further interest rate cuts are likely needed, policymakers should proceed cautiously, given uncertainties about the restrictiveness of current monetary policy. In addition, St. Louis Fed President Alberto Musalem remarked that the central bank is close to achieving its inflation and employment goals, but he emphasized that officials should maintain a “moderately restrictive” policy stance as long as price growth exceeds the Fed’s 2% target. Finally, Kansas City Fed President Jeff Schmid said, “While now is the time to begin dialing back the restrictiveness of monetary policy, it remains to be seen how much further interest rates will decline or where they might eventually settle.”

U.S. rate futures have priced in a 79.1% chance of a 25 basis point rate cut and a 20.9% chance of no rate change at the December FOMC meeting.

Meanwhile, Fed Chair Jerome Powell is set to deliver a speech about the economy at an event hosted by the Dallas Regional Chamber later today. Also, Fed Governor Adriana Kugler, Richmond Fed President Thomas Barkin, and New York Fed President John Williams will speak today.

On the earnings front, notable companies like Disney , Applied Materials , and Brookfield are set to report their quarterly figures today.

On the economic data front, all eyes are focused on the U.S. Producer Price Index, which is set to be released in a couple of hours. Economists, on average, forecast that the U.S. October PPI will come in at +0.2% m/m and +2.3% y/y, compared to the previous figures of 0.0% m/m and +1.8% y/y.

The U.S. Core PPI will also be closely watched today. Economists expect October figures to be +0.3% m/m and +3.0% y/y, compared to the previous numbers of +0.2% m/m and +2.8% y/y.

U.S. Initial Jobless Claims data will come in today. Economists forecast this figure to stand at 224K, up from last week’s 221K.

U.S. Crude Oil Inventories data will be reported today as well. Economists estimate this figure to be 0.400M, compared to last week’s value of 2.149M.

In the bond market, the yield on the benchmark 10-year U.S. Treasury note is at 4.475%, up +0.49%.

The Euro Stoxx 50 futures are up +1.39% this morning as investors digested regional growth and employment data as well as positive corporate earnings reports. Gains in energy and technology stocks are leading the overall market higher. Data from Eurostat released on Thursday showed that Eurozone employment increased slightly more than anticipated last quarter, and the economy grew at a solid rate. Separately, data showed that Eurozone industrial output fell more than expected in September. Meanwhile, market participants are also awaiting the release of the European Central Bank’s October policy meeting minutes due later in the session. In corporate news, Asml Holding gained over +4% after Europe’s largest tech firm reaffirmed its bullish long-term revenue outlook. Also, Siemens Ag S climbed more than +7% after the German engineering group posted a better-than-expected Q4 profit. In addition, Burberry Group Plc (BRBY.LN) surged over +14% after the company’s new CEO, Joshua Schulman, unveiled a turnaround strategy.

Spain’s CPI, Eurozone’s GDP (preliminary), Eurozone’s Employment Change (preliminary), and Eurozone’s Industrial Production data were released today.

The Spanish October CPI came in at +0.6% m/m and +1.8% y/y, in line with expectations.

Eurozone GDP has been reported at +0.4% q/q and +0.9% y/y in the third quarter, in line with expectations.

Eurozone Employment Change arrived at +0.2% q/q in the third quarter, stronger than expectations of +0.1% q/q.

Eurozone September Industrial Production stood at -2.0% m/m and -2.8% y/y, weaker than expectations of -1.3% m/m and -2.0% y/y.

Asian stock markets today closed in the red. China’s Shanghai Composite Index (SHCOMP) closed down -1.73% and Japan’s Nikkei 225 Stock Index (NIK) closed down -0.48%.

China’s Shanghai Composite Index closed lower today as Beijing’s latest efforts to revive the struggling property sector failed to impress investors. Lithium and hardware stocks led the declines on Thursday. Sentiment remained downbeat as investors continued to assess the potential effects of U.S. President-elect Donald Trump’s trade policies on the nation’s economy and markets, following reports that his party will control both houses of Congress. Meanwhile, China introduced tax incentives on home and land transactions on Wednesday, targeting support for the struggling property market by stimulating demand and alleviating financial pressures on developers. According to the statement, the finance ministry will expand eligibility for the 1% deed tax to cover apartments up to 140 square meters, an increase from the previous 90 square meters, effective December 1st. The statement also said that the minimum pre-collection rate for land value-added tax will be lowered by 0.5 percentage points. In corporate news, Lingyi iTech Guangdong dropped over -6% after issuing convertible bonds totaling 2.14 billion yuan. Investor attention is currently centered on the next batch of Chinese data for October, including fixed asset investment, unemployment, industrial production, and retail sales, scheduled for Friday.

Japan’s Nikkei 225 Stock Index gave up early gains and closed lower today. Infrastructure and technology stocks weighed on the index on Thursday. Investors also continued to evaluate the potential effects of U.S. President-elect Donald Trump’s policies on Japan’s economy, especially on export-oriented industries. Meanwhile, the yen weakened further against the dollar on Thursday to its lowest level since July, bringing it close to the levels that previously prompted Japanese authorities to intervene in support of the currency. In other news, the Sankei newspaper reported late on Wednesday that the Japanese government is arranging to compile a supplementary budget of about 13.5 trillion yen ($87 billion) to finance a stimulus package aimed at assisting low-income households and mitigating the impact of rising prices. In corporate news, Kansai Electric tumbled over -18% after the utility announced on Wednesday that it intends to raise 504.9 billion yen ($3.3 billion), including a public offering of approximately 148 million new shares. Investor focus is now shifting to Japanese third-quarter GDP data, scheduled for release on Friday, which could offer additional insights into the nation’s economic outlook. The Nikkei Volatility, which takes into account the implied volatility of Nikkei 225 options, closed down -1.65% to 24.38.

Pre-Market U.S. Stock Movers

Cisco Systems fell over -3% in pre-market trading as the networking giant’s conservative full-year sales forecast overshadowed better-than-expected FQ1 results and upbeat FQ2 guidance.

Tetra Tech plunged more than -10% in pre-market trading after the company issued weak full-year EPS guidance.

Doximity rose over +1% in pre-market trading after Morgan Stanley upgraded the stock to Equal Weight from Underweight.

Today’s U.S. Earnings Spotlight: Thursday - November 14th

Walt Disney (DIS), Applied Materials (AMAT), Brookfield (BN), NetEase (NTES), Globant SA (GLOB), Ast Spacemobile (ASTS), Bilibili (BILI), Ascendis Pharma AS (ASND), Post (POST), ESCO Technologies (ESE), Oklo Inc (OKLO), Inter and Co A (INTR), Nomad Foods (NOMD), Advance Auto Parts (AAP), Intuitive Machines (LUNR), Sally Beauty (SBH), Suburban Propane Partners LP (SPH), Despegar.com (DESP), Enerflex (EFXT), Eagle Point Cred (ECC), Digimarc (DMRC), Telesat (TSAT), Youdao (DAO), Celcuity (CELC), European Wax Center (EWCZ), Hyliion Holdings (HYLN).

• Stocks Steady Before the Open With Focus on Key U.S. PPI Data and Powell Speech, Disney Earnings on Tap
• 3 Dividend Stocks to Scoop Up Now for a Strong 2025
• Snag These 3 Standout Growth Stocks to Beat the Market
• 3 Dividend Stocks Yielding 5% or More to Grab Now

On the date of publication, Oleksandr Pylypenko did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policyhere.

Parker-Hannifin Corporation PH has been benefiting from strength in the Aerospace Systems segment, driven by solid momentum in commercial and military end markets. Segmental organic revenues jumped 17.2% year over year in the first quarter of fiscal 2025 (ended Sept. 30, 2024), supported by strength across both OEM and aftermarket channels.

In the quarters ahead, the segment is expected to benefit from solid demand for its products and aftermarket support services in general aviation and military end markets. The company expects the Aerospace Systems segment’s organic sales to increase 10% from the year-ago level in fiscal 2025 (ending June 2025).

The company intends to strengthen and expand its businesses through acquisitions. Its acquisition of Meggitt expanded its presence in the United Kingdom, thereby positioning it well to provide a broader suite of solutions for aircraft and aero-engine components and systems. Acquisitions boosted the company’s sales by 2.6% in fiscal 2024.

The company’s portfolio reshaping actions also include disposing of non-profitable businesses. In November 2024, it divested its composites and fuel containment business for $560 million and a non-core filtration business within the Diversified Industrial Segment for $66 million. This will enable PH to rebalance its portfolio toward its core Aerospace business.

PH remains committed to rewarding its shareholders through dividend payouts. For instance, in fiscal 2024, it rewarded shareholders with dividends of $782 million, indicating an increase of 11% year over year. Also, it hiked its quarterly dividend rate by 10% in April 2024.

PH’s Price Performance

In the past three months, this Zacks Rank #3 (Hold) company's shares have gained 20.9% compared with the industry’s 13.5% growth.

Despite the positives, the company has been witnessing challenging conditions in off-highway and transportation end markets, which have been hurting its Diversified Industrial segment’s performance. The segment’s organic sales fell 4.5% year over year in the first quarter of fiscal 2025.

Also, a weak liquidity position remains a concern for the company. Exiting the fiscal first quarter, the company had cash and cash equivalents of $371.1 million, much lower than its short-term debt of about $3.5 billion.

Stocks to Consider

Some better-ranked companies from the same space are discussed below:

Kadant Inc. KAI presently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

It has a trailing four-quarter average earnings surprise of 17.2%. The Zacks Consensus Estimate for KAI’s 2024 earnings has improved 1.8% in the past 60 days.

RBC Bearings Incorporated RBC presently has a Zacks Rank of 2 and a trailing four-quarter earnings surprise of 2.5%, on average. The consensus estimate for RBC’s 2024 earnings has increased 2.4% in the past 60 days.

Generac Holdings GNRC presently carries a Zacks Rank of 2. GNRC delivered a trailing four-quarter earnings surprise of 10.8%, on average. The Zacks Consensus Estimate for Generac Holdings’ 2024 earnings has increased 5.1% in the past 60 days.

Zacks Investment Research