Back to top

Image: Bigstock

Home Furnishing Stocks Earnings on Aug 10: DOOR, CRWS

Read MoreHide Full Article

Of the construction companies in the S&P 500 index, 92.3% have already reported their results. According to our earnings preview report only 33.3% of construction companies surpassed earnings estimates and 33.3% came ahead of revenue expectations. Total earnings of these construction companies increased 9.5% on 6.2% increase in revenues.

Positives like a healthier economy, improving employment levels, low interest rates, positive consumer confidence and a tight supply situation raise optimism about the sector’s performance in the second half. In addition to home construction, the home remodeling market has also picked up pace. Improved construction and remodeling activity have increased demand for home furnishing products.

Last week, one of the leading home furnishing product companies, Mohawk Industries, Inc.’s (MHK - Free Report) adjusted earnings of $3.47 per share beat the Zacks Consensus Estimate by 3.27% and rose 29% year over year backed by strong operating margins. Earnings also came above the company’s guidance.

Next up, two home furnishing product companies are scheduled to report their quarterly results on Aug 10. Let us look at how these companies are placed ahead of their releases.

Masonite International Corporation (DOOR - Free Report)

Masonite is set to report second-quarter fiscal 2016 results after market close.

Last quarter, Masonite posted a positive surprise of 35.71%. Masonite has surpassed estimates in three of the past four quarters, resulting in an average positive surprise of 26.66%.  

MASONITE INT CP Price and EPS Surprise

MASONITE INT CP Price and EPS Surprise | MASONITE INT CP Quote


It has an Earnings ESP of -3.37% and a Zacks Rank #3 (Hold). The Zacks Consensus Estimate for the quarter is pegged at 89 cents.   

Crown Crafts, Inc. (CRWS - Free Report)

Crown Crafts is set to report first-quarter fiscal 2017 results before market opens tomorrow.

Last quarter, Crown Crafts posted a negative earnings surprise of 4.35%. However, the company has delivered positive earnings surprises in two of the last four quarters with an average positive surprise of 8.49%.  

CROWN CRAFTS Price and EPS Surprise

CROWN CRAFTS Price and EPS Surprise | CROWN CRAFTS Quote


However, Crown Crafts has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell). The Zacks Consensus Estimate for the quarter is pegged at 9 cents.    

Conclusion

With the rise in demand for homes, remodeling activities and an improving job market in 2016, home furnishing product companies such as the ones discussed above are expected to witness strong demand for their products.  

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>

Published in