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Key Takeaways Modine is expected to report 31.2% revenue growth and 30.2% EPS growth in fiscal Q1 2027.Record data center orders & 80/20 gains could boost results, while component shortages may disrupt production.Modine expects 20-35% fiscal 2027 sales growth, but higher capex and working capital needs pressure cash flow. Modine Manufacturing Company (MOD - Free Report) is slated to release first-quarter fiscal 2027 results on July 29, after the closing bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share (EPS) and revenues is pegged at $1.38 and $895.51 million, respectively.

For the fiscal first quarter, the consensus estimate for Modine’s earnings has moved down 5 cents over the past 30 days. Its bottom-line estimates imply growth of 30.2% from the year-ago reported numbers.

The Zacks Consensus Estimate for MOD's quarterly revenues implies a year-over-year rise of 31.2%. The company's earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 14.18%. This is depicted in the graph below:

Q4 HighlightsModine posted adjusted earnings of $1.71 per share for the fourth quarter of fiscal 2026, which increased 53% from the year-ago quarter and came above the Zacks Consensus Estimate of $1.51 by 13.2%. Net sales were $954.4 million, which rose 47% year over year and topped the consensus mark of $907 million by 5.2%.

Things to NoteModine’s data center business is supported by record order intake and roughly five years of pipeline visibility, underpinned by strong exposure to hyperscale customers. The new long-term capacity agreement also improves visibility, with Modine set to supply more than $4 billion of Airedale chiller products to a strategic customer during calendar years 2027 through 2029 and supported by a $165 million upfront payment.

The company continues to apply 80/20 principles to simplify operations, improve capacity use and direct resources toward products and markets with the best return profiles. The framework supported Modine’s fourth consecutive year of record revenues and adjusted EBITDA in fiscal 2026. For fiscal 2027, the company expects total sales growth of 20-35% and adjusted EBITDA growth of 38-44%, with at least 100-200 basis points of consolidated margin expansion.

Strength in the data center business and benefits from the application of 80/20 principles are likely to have bolstered Modine’s performance in the to-be-reported quarter.

However, the shortages of critical components that emerged late in the quarter are affecting production schedules and efficiency. The company is qualifying new suppliers and implementing corrective actions, but these issues are expected to have temporarily negatively impacted fiscal first-quarter production. Also, Modine’s free cash flow is currently under pressure due to heavy investment and working capital needs. For fiscal 2027, the company expects capital expenditure of $150 million to $200 million, up from $143.3 million in fiscal 2026.

Expected production disruption and rising capital requirements are likely to have weighed on Modine’s fiscal first-quarter results.

Let’s have a look at the Zacks Consensus Estimate for Modine’s segmental performance.

The Zacks Consensus Estimate for Climate Solutions’ fiscal first-quarter revenues is pegged at $634 million, which suggests a rise of 59.7% year over year. The Zacks Consensus Estimate for Performance Technologies’ revenues is pegged at $289 million, which is in line with the revenues reported in the year-ago period.

The Zacks Consensus Estimate for Climate Solutions’ fiscal first-quarter adjusted EBITDA is pegged at $112 million, suggesting a year-over-year rise of 41.8%. The Zacks Consensus Estimate for Performance Technologies’ adjusted EBITDA is pegged at $37.5 million, which is the same as year-ago adjusted EBITDA.

Earnings WhispersOur 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.

Earnings ESP: MOD has an Earnings ESP of -10.15%. This is because the Most Accurate Estimate is pegged lower than 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 #2.

Stocks With the Favorable CombinationHere are a few players from the auto space that, per our model, have the correct ingredients to post an earnings beat this time.

Cummins Inc. (CMI - Free Report) is slated to release second-quarter 2026 results on Aug. 4. The company has an Earnings ESP of +0.78% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for CMI’s to-be-reported quarter’s earnings and revenues is pegged at $7.33 per share and $9.33 billion, respectively.

BorgWarner Inc. (BWA - Free Report) is scheduled to release second-quarter 2026 results on Aug. 5. The company has an Earnings ESP of +0.62% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for BWA’s to-be-reported quarter’s earnings and revenues is pegged at $1.26 per share and $3.58 billion, respectively.

In the latest close session, Modine (MOD - Free Report) was down 6.13% at $277.46. The stock fell short of the S&P 500, which registered a loss of 1.44% for the day. Elsewhere, the Dow lost 0.09%, while the tech-heavy Nasdaq lost 2.22%.

The stock of heating and cooling products maker has risen by 13.46% in the past month, leading the Auto-Tires-Trucks sector's loss of 3.79% and the S&P 500's gain of 0.08%.

The upcoming earnings release of Modine will be of great interest to investors. In that report, analysts expect Modine to post earnings of $1.43 per share. This would mark year-over-year growth of 34.91%. At the same time, our most recent consensus estimate is projecting a revenue of $895.49 million, reflecting a 31.15% rise from the equivalent quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $7.73 per share and a revenue of $4.03 billion, representing changes of +53.98% and +26.76%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Modine. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 6.99% increase. Right now, Modine possesses a Zacks Rank of #3 (Hold).

In the context of valuation, Modine is at present trading with a Forward P/E ratio of 38.24. This expresses a premium compared to the average Forward P/E of 13.11 of its industry.

Meanwhile, MOD's PEG ratio is currently 0.96. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. MOD's industry had an average PEG ratio of 0.9 as of yesterday's close.

The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. With its current Zacks Industry Rank of 160, this industry ranks in the bottom 35% of all industries, numbering over 250.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.