Wall Street analysts have trimmed their earnings estimates for Modine Manufacturing, with the Zacks Consensus Estimate for fiscal 2027 and 2028 EPS slipping 9 cents and 5 cents respectively over the past seven days. The downward revisions follow a fiscal first-quarter report that beat expectations but revealed a 340-basis-point drop in gross margin to 20.8%, driven by higher material costs, unfavorable mix, and lingering supply bottlenecks that dragged data center segment margin down an estimated 450 to 550 basis points. Management is targeting a sharp recovery to 19-20% data center margin in the second quarter and above 20% in the back half, a path that depends on timely supplier capacity expansion, pricing adjustments, and cost reimbursements. With the stock trading at 23.12 times forward earnings and the top 10 customers accounting for 49% of fiscal 2026 sales, concentration risk and a demanding guidance cadence leave little room for error. Modine Manufacturing currently carries a Zacks Rank of 4, or Sell.
Modine Manufacturing CompanyHigher material costs and supply bottlenecks pressured margins, leading to downward estimate revisions.
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