Is a Beat in Store for Atmus Filtration (ATMU) in Q4 Earnings?

Core Viewpoint - Atmus Filtration Technologies Inc. (ATMU) is expected to report its fourth-quarter 2023 results on February 14, with a history of surpassing earnings estimates in the previous two quarters, averaging a surprise of 23.4% [1] Group 1: Earnings Performance - The company's earnings in the last reported quarter were 52 cents per share, exceeding the Zacks Consensus Estimate of 45 cents by 15.6% [1] - Atmus Filtration has an Earnings ESP of +4.65%, with the Most Accurate Estimate at 45 cents, higher than the Zacks Consensus Estimate of 43 cents [4] Group 2: Growth Factors - The company is expected to benefit from its four-pillar growth strategy, focusing on first-fit markets, aftermarket growth, industrial filtration expansion, and supply-chain optimization [2] - Strong demand in first-fit markets is anticipated to drive top-line performance in the fourth quarter [2] - Product and technology leadership, along with strategic partnerships and the popularity of the Fleetguard brand, are likely to bolster revenues [2] Group 3: Challenges - Weakness in the aftermarket due to lower freight activity and customer destocking may negatively impact performance [3] - Sluggish economic recovery in China is expected to weigh on fourth-quarter results [3] - High capital and R&D investments for technology expansion may affect margin performance [3] - Foreign currency headwinds from substantial international operations could also impact profitability [3] Group 4: Comparative Analysis - Other companies with favorable earnings prospects include Flowserve Corporation (FLS) with an Earnings ESP of +1.22% and a trailing four-quarter earnings surprise of 27.3% [5] - Alarm.com Holdings (ALRM) has an Earnings ESP of +8.79% and a trailing four-quarter earnings surprise of 35% [5] - Nordson Corporation (NDSN) has an Earnings ESP of +3.25% and a trailing four-quarter earnings surprise of 2.6% [6]