Modine Gears Up to Report Q4 Earnings: Here's What to Expect

Modine Manufacturing Company MOD is slated to release fourth-quarter fiscal 2025 results on May 21, after the closing bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share (EPS) and revenues is pegged at 95 cents and $629.47 million, respectively.

For the fiscal fourth quarter, the consensus estimate for Modine’s earnings has moved down a penny in the past seven days. Its bottom-line estimates imply 23.38% growth from the year-ago reported numbers. 

The Zacks Consensus Estimate for MOD's quarterly revenues implies year-over-year growth of 4.30%. The company's earnings beat estimates in three of the trailing four quarters and missed once, delivering an average surprise of 9.79%. This is depicted in the graph below:

Modine Manufacturing Company Price and EPS Surprise

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

Highlights of MOD’s Q3 Results

In the third quarter of fiscal 2025, MOD’s adjusted EPS of 92 cents beat the Zacks Consensus Estimate of 79 cents and increased from 74 cents reported in the year-ago quarter. The company reported net sales of $617 million, which topped the Zacks Consensus Estimate of $613 million. The top line also rose from $561 million reported in the year-ago quarter.

Things to Note Ahead of MOD’s Q4 Release

For fiscal 2025, the company expected net revenues to increase 6-11% year over year due to a favorable sales mix. It expected adjusted EBITDA to increase to $375-$395 million compared with $314.3 million reported in fiscal 2024. An anticipated increase in sales and adjusted EBITDA for fiscal 2025 is likely to have bolstered the company’s performance in the to-be-reported quarter. 

In the third quarter of fiscal 2025, revenues in the Performance Technologies segment fell to $262.2 million from $310.9 million due to extended customer shutdowns and ongoing weakness in its vehicular markets. The company expected this weakness to have persisted in the to-be-reported quarter across all markets, including automotive, commercial vehicle and off-highway customers. 

In the first nine months of fiscal 2025, SG&A expense as a percent of sales increased to 12.9% from 11% in the corresponding period of fiscal 2024. Amid higher salary and incentive compensation expenses, the SG&A expenses are expected to have remained higher in the to-be-reported quarter. Continued weakness in the Performance Technologies segment and higher expected expenses are likely to have hurt the company’s performance in the fiscal fourth quarter.

Earnings Whispers for MOD

Our proven model does not conclusively predict an earnings beat for Modine for the quarter to be reported, 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.

MOD’s Earnings ESP: MOD has an Earnings ESP of +0.21%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

(Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Zacks Rank of MOD: It currently carries a Zacks Rank #4 (Sell).

Earnings Whispers for Other Auto Stocks

Advance Auto Parts, Inc. AAP has an Earnings ESP of -0.51% and sports a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The company is slated to post first-quarter 2025 earnings on May 22. The Zacks Consensus Estimate for loss is pegged at 82 cents per share.

AAP’s earnings surpassed estimates in one of the trailing four quarters and missed thrice, the average negative surprise being 29.7%.

AutoZone, Inc. AZO has an Earnings ESP of +2.74% and a Zacks Rank #3 at present. The company is slated to post fiscal third-quarter 2025 earnings on May 27. The Zacks Consensus Estimate for earnings is pegged at $37 per share.

AZO’s earnings surpassed estimates in one of the trailing four quarters and missed thrice, the average negative surprise being 3.23%.

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This article originally published on Zacks Investment Research (zacks.com).

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