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Construction Stocks' Q4 Earnings on Feb 27: AWI and IBP
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The fourth-quarter earnings season is on its last leg with 92.3% construction companies in the S&P 500 cohort already having released quarterly results. According to the latest Earnings Preview, 58.3% of the companies have surpassed earnings estimates; while 66.7% beat revenue expectations. Total earnings at these construction companies increased 9.3% and total revenue rose 8.1%.
The U.S. homebuilding market staged a striking comeback in Dec 2016 and the housing market is likely to have contributed to economic growth in the fourth quarter. Positives like a healthier economy, improving employment levels, positive consumer confidence and a tight supply situation raise optimism about the sector’s performance in 2017.
Some of the leading companies in the construction sector have reported their results so far. D.R. Horton, Inc. (DHI - Free Report) exhibited an impressive performance in the first quarter of fiscal 2017, with earnings and revenues beating the Zacks Consensus Estimate by 17% and 6.8%, respectively. Masco Corporation’s (MAS - Free Report) reported fourth-quarter numbers, wherein earnings missed analysts’ expectations by 2.9%, but revenues surpassed estimates by 0.6%. Vulcan Materials Company’s (VMC - Free Report) adjusted earnings and revenues lagged the Zacks Consensus Estimate by 16.8% and 4.6%, respectively.
With more companies likely to report their quarterly results over the next few days, let us take a look at how these two construction companies are placed ahead of their earnings release on Feb 27.
World Industries Inc (AWI - Free Report) , a global leader in the design and manufacture of floors, ceilings and cabinets, is scheduled to report fourth-quarter 2016 results, before the opening bell.
Last quarter, the company’s earnings were in line with our expectations. Also, it surpassed estimates in two of the last four quarters and has an average negative surprise of 0.91%.
The company has a Zacks Rank #5 (Strong Sell). Our proven model does not conclusively show a beat for Armstrong as a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 to beat earnings.
Armstrong World Industries Inc Price and EPS Surprise
Please note that we caution against Sell-rated stocks (Zacks Rank #4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
For the fourth quarter, the Zacks Consensus Estimate for the stock is pegged at 44 cents, reflecting a year-over-year increase of 64.4%. Our estimate for revenues is $302.42 million, implying a 47.6% slump.
Installed Building Products, Inc. (IBP - Free Report) , a residential insulation and complementary building products installer, is slated to report fourth-quarter 2016 numbers, before the market opens.
In the preceding quarter, the company posted a negative earnings surprise of 15.9%. The company missed earnings in three of the preceding four quarters, with an average beat of 7.57%.
Our proven model does not conclusively indicate an earnings beat for Installed Building as it has an Earnings ESP of 0.00% and a Zacks Rank #3.
Installed Building Products, Inc. Price and EPS Surprise
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
The Zacks Consensus Estimate for the fourth quarter is pegged at 40 cents, reflecting an increase of 41.1% year over year. The consensus mark for revenues is pegged at $231.35 million, indicating 20.8% year-over-year growth.
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Construction Stocks' Q4 Earnings on Feb 27: AWI and IBP
The fourth-quarter earnings season is on its last leg with 92.3% construction companies in the S&P 500 cohort already having released quarterly results. According to the latest Earnings Preview, 58.3% of the companies have surpassed earnings estimates; while 66.7% beat revenue expectations. Total earnings at these construction companies increased 9.3% and total revenue rose 8.1%.
The U.S. homebuilding market staged a striking comeback in Dec 2016 and the housing market is likely to have contributed to economic growth in the fourth quarter. Positives like a healthier economy, improving employment levels, positive consumer confidence and a tight supply situation raise optimism about the sector’s performance in 2017.
Some of the leading companies in the construction sector have reported their results so far. D.R. Horton, Inc. (DHI - Free Report) exhibited an impressive performance in the first quarter of fiscal 2017, with earnings and revenues beating the Zacks Consensus Estimate by 17% and 6.8%, respectively. Masco Corporation’s (MAS - Free Report) reported fourth-quarter numbers, wherein earnings missed analysts’ expectations by 2.9%, but revenues surpassed estimates by 0.6%. Vulcan Materials Company’s (VMC - Free Report) adjusted earnings and revenues lagged the Zacks Consensus Estimate by 16.8% and 4.6%, respectively.
With more companies likely to report their quarterly results over the next few days, let us take a look at how these two construction companies are placed ahead of their earnings release on Feb 27.
World Industries Inc (AWI - Free Report) , a global leader in the design and manufacture of floors, ceilings and cabinets, is scheduled to report fourth-quarter 2016 results, before the opening bell.
Last quarter, the company’s earnings were in line with our expectations. Also, it surpassed estimates in two of the last four quarters and has an average negative surprise of 0.91%.
Armstrong has a Earnings ESP of +4.55% as the Most Accurate estimate of 46 cents comes above the Zacks Consensus Estimate of 44 cents. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company has a Zacks Rank #5 (Strong Sell). Our proven model does not conclusively show a beat for Armstrong as a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 to beat earnings.
Armstrong World Industries Inc Price and EPS Surprise
Armstrong World Industries Inc Price and EPS Surprise | Armstrong World Industries Inc Quote
Please note that we caution against Sell-rated stocks (Zacks Rank #4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
For the fourth quarter, the Zacks Consensus Estimate for the stock is pegged at 44 cents, reflecting a year-over-year increase of 64.4%. Our estimate for revenues is $302.42 million, implying a 47.6% slump.
Installed Building Products, Inc. (IBP - Free Report) , a residential insulation and complementary building products installer, is slated to report fourth-quarter 2016 numbers, before the market opens.
In the preceding quarter, the company posted a negative earnings surprise of 15.9%. The company missed earnings in three of the preceding four quarters, with an average beat of 7.57%.
Our proven model does not conclusively indicate an earnings beat for Installed Building as it has an Earnings ESP of 0.00% and a Zacks Rank #3.
Installed Building Products, Inc. Price and EPS Surprise
Installed Building Products, Inc. Price and EPS Surprise | Installed Building Products, Inc. Quote
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
The Zacks Consensus Estimate for the fourth quarter is pegged at 40 cents, reflecting an increase of 41.1% year over year. The consensus mark for revenues is pegged at $231.35 million, indicating 20.8% year-over-year growth.
A Full-Blown Technological Breakthrough in the Making
Zacks’ Aggressive Growth Strategist Brian Bolan explores autonomous cars in our latest Special Report, Driverless Cars: Your Roadmap to Mega-Profits Today. In addition to who will be selling them and how the auto industry will be impacted, Brian reveals 8 stocks with tremendous gain potential to feed off this phenomenon.Click to see the stocks right now >>