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Construction Stock Q1 Earnings on Apr 27: CAA, USG & More
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After a string of earnings releases by construction companies, the next batch is gearing up for first-quarter financial reports this week. Overall, earnings are on a growth track this quarter and construction seems to be one of the stand-out sectors.
The ongoing reporting cycle has already witnessed releases from 38.5% of the construction companies in the S&P 500 cohort. Per the latest Earnings Preview report, 80% companies posted an earnings beat, while 20% surpassed revenue estimates. Total earnings of these construction companies increased 11.5% on 9.5% higher revenues.
Construction activity picked up in 2016. Positives such as an improving economy, modest wage growth, low unemployment levels and positive consumer confidence raise optimism about the sector’s performance in 2017. As such, demand for companies’ products should also increase, thereby driving revenues.
So far, some of the leading companies in the construction sector have reported their first-quarter results. United Rentals Inc. (URI - Free Report) exhibited an impressive performance in the first quarter of 2017, with earnings and revenues beating the Zacks Consensus Estimate by 3.2% and 1.5%, respectively.
Masco Corporation’s (MAS - Free Report) reported first-quarter 2017 adjusted earnings of 41 cents per share, beating the consensus mark by 17.1%. Adjusted earnings increased 28.1% year over year. Masco also posted net sales of $1.78 billion, surpassing the Zacks Consensus Estimate of $1.75 billion by 1.7%.
Let’s take a look at how the following construction companies are placed ahead of their first-quarter 2017 earnings releases on Apr 27.
CalAtlantic Group, Inc. , a homebuilder, is slated to report its quarterly numbers after the closing bell.
Last quarter, the company posted a positive earnings surprise of 16.67%. The company surpassed earnings estimates in three of the last four quarters with an average surprise of 8.83%.
Our model suggests that a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat earnings. In this case, our proven model does not conclusively predict an earnings beat for CalAtlantic this quarter as it has a Zacks Rank #3 and an Earnings ESP of -9.26% (Most Accurate estimate stands at 49 cents and Zacks Consensus Estimate at 54 cents). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
For the first quarter, the Zacks Consensus Estimate for earnings is pegged at 54 cents, reflecting a 3.1% year-over-year increase. Meanwhile, our estimate for revenues is pegged at $1.27 billion, implying a 6.9% increase.
USG Corporation (USG - Free Report) , a leading manufacturer and distributor of building materials, is scheduled to report its numbers before the opening bell.
Last quarter, the company posted a positive earnings surprise of 25.71%. The company surpassed estimates in three of the last four quarters and has an average positive surprise of 20.76%.
Currently, the company has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate is pegged at 46 cents.
USG’s Zacks Rank #3 increases the predictive power of ESP. However, we need to have a positive ESP to be confident about a positive earnings surprise.
For the first quarter, the Zacks Consensus Estimate for earnings is pegged at 46 cents, up 6.7% year over year. Meanwhile, the Zacks Consensus Estimate for revenues is $752.1 million, reflecting a 22.5% decrease.
Potlatch Corp. (PCH - Free Report) , an integrated forest products company with substantial timber resources, will report its earnings before the market opens.
Last quarter, Potlatch posted a positive surprise of 16.67%. The company surpassed estimates in three out of the last four quarters and has an average positive earnings surprise of 49.88%. Estimates for 2017 went up by 10.7% in the last 30 days.
Our proven model shows that Potlatch is likely to beat earnings because it has the perfect combination of an Earnings ESP of +29.17% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for the quarter’s earnings is pegged at 24 cents. The consensus for revenues is at pegged $138.3 million, implying 8.1% year-over-year growth.
Meritage Corporation (MTH - Free Report) , one of the nation's largest single-family homebuilders, is slated to report before the market opens.
Last quarter, Meritage surpassed earnings estimates by 2.52%. The company surpassed estimates in all of the last four quarters, with an average beat of 8.68%.
Meritage has a Zacks Rank #2 and an Earnings ESP of +2.38%. In this case, our proven model indicates that Meritage is likely to beat earnings.
The Zacks Consensus Estimate for the quarter’s earnings is pegged at 42 cents, down 16.7% year over year. The consensus for revenues is at $604.5 million, implying 0.7% year-over-year growth.
Patrick Industries, Inc. (PATK - Free Report) manufactures and supplies building products and materials to the manufactured housing and recreational vehicle industries. The company is scheduled to report its numbers before the opening bell.
Our proven model does not conclusively predict an earnings beat for Patrick this quarter as it has a Zacks Rank #3 and an Earnings ESP of -2.30%.
For the first quarter, the Zacks Consensus Estimate for earnings is pegged at 87 cents, reflecting a 8.1% year-over-year rise.
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Construction Stock Q1 Earnings on Apr 27: CAA, USG & More
After a string of earnings releases by construction companies, the next batch is gearing up for first-quarter financial reports this week. Overall, earnings are on a growth track this quarter and construction seems to be one of the stand-out sectors.
The ongoing reporting cycle has already witnessed releases from 38.5% of the construction companies in the S&P 500 cohort. Per the latest Earnings Preview report, 80% companies posted an earnings beat, while 20% surpassed revenue estimates. Total earnings of these construction companies increased 11.5% on 9.5% higher revenues.
Construction activity picked up in 2016. Positives such as an improving economy, modest wage growth, low unemployment levels and positive consumer confidence raise optimism about the sector’s performance in 2017. As such, demand for companies’ products should also increase, thereby driving revenues.
So far, some of the leading companies in the construction sector have reported their first-quarter results. United Rentals Inc. (URI - Free Report) exhibited an impressive performance in the first quarter of 2017, with earnings and revenues beating the Zacks Consensus Estimate by 3.2% and 1.5%, respectively.
Masco Corporation’s (MAS - Free Report) reported first-quarter 2017 adjusted earnings of 41 cents per share, beating the consensus mark by 17.1%. Adjusted earnings increased 28.1% year over year. Masco also posted net sales of $1.78 billion, surpassing the Zacks Consensus Estimate of $1.75 billion by 1.7%.
Let’s take a look at how the following construction companies are placed ahead of their first-quarter 2017 earnings releases on Apr 27.
CalAtlantic Group, Inc. , a homebuilder, is slated to report its quarterly numbers after the closing bell.
Last quarter, the company posted a positive earnings surprise of 16.67%. The company surpassed earnings estimates in three of the last four quarters with an average surprise of 8.83%.
Our model suggests that a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat earnings. In this case, our proven model does not conclusively predict an earnings beat for CalAtlantic this quarter as it has a Zacks Rank #3 and an Earnings ESP of -9.26% (Most Accurate estimate stands at 49 cents and Zacks Consensus Estimate at 54 cents). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
For the first quarter, the Zacks Consensus Estimate for earnings is pegged at 54 cents, reflecting a 3.1% year-over-year increase. Meanwhile, our estimate for revenues is pegged at $1.27 billion, implying a 6.9% increase.
CalAtlantic Group, Inc. Price and EPS Surprise
CalAtlantic Group, Inc. Price and EPS Surprise | CalAtlantic Group, Inc. Quote
USG Corporation (USG - Free Report) , a leading manufacturer and distributor of building materials, is scheduled to report its numbers before the opening bell.
Last quarter, the company posted a positive earnings surprise of 25.71%. The company surpassed estimates in three of the last four quarters and has an average positive surprise of 20.76%.
Currently, the company has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate is pegged at 46 cents.
USG’s Zacks Rank #3 increases the predictive power of ESP. However, we need to have a positive ESP to be confident about a positive earnings surprise.
For the first quarter, the Zacks Consensus Estimate for earnings is pegged at 46 cents, up 6.7% year over year. Meanwhile, the Zacks Consensus Estimate for revenues is $752.1 million, reflecting a 22.5% decrease.
USG Corporation Price and EPS Surprise
USG Corporation Price and EPS Surprise | USG Corporation Quote
Potlatch Corp. (PCH - Free Report) , an integrated forest products company with substantial timber resources, will report its earnings before the market opens.
Last quarter, Potlatch posted a positive surprise of 16.67%. The company surpassed estimates in three out of the last four quarters and has an average positive earnings surprise of 49.88%. Estimates for 2017 went up by 10.7% in the last 30 days.
Our proven model shows that Potlatch is likely to beat earnings because it has the perfect combination of an Earnings ESP of +29.17% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for the quarter’s earnings is pegged at 24 cents. The consensus for revenues is at pegged $138.3 million, implying 8.1% year-over-year growth.
Potlatch Corporation Price and EPS Surprise
Potlatch Corporation Price and EPS Surprise | Potlatch Corporation Quote
Meritage Corporation (MTH - Free Report) , one of the nation's largest single-family homebuilders, is slated to report before the market opens.
Last quarter, Meritage surpassed earnings estimates by 2.52%. The company surpassed estimates in all of the last four quarters, with an average beat of 8.68%.
Meritage has a Zacks Rank #2 and an Earnings ESP of +2.38%. In this case, our proven model indicates that Meritage is likely to beat earnings.
The Zacks Consensus Estimate for the quarter’s earnings is pegged at 42 cents, down 16.7% year over year. The consensus for revenues is at $604.5 million, implying 0.7% year-over-year growth.
Meritage Corporation Price and EPS Surprise
Meritage Corporation Price and EPS Surprise | Meritage Corporation Quote
Patrick Industries, Inc. (PATK - Free Report) manufactures and supplies building products and materials to the manufactured housing and recreational vehicle industries. The company is scheduled to report its numbers before the opening bell.
Our proven model does not conclusively predict an earnings beat for Patrick this quarter as it has a Zacks Rank #3 and an Earnings ESP of -2.30%.
For the first quarter, the Zacks Consensus Estimate for earnings is pegged at 87 cents, reflecting a 8.1% year-over-year rise.
Patrick Industries, Inc. Price and EPS Surprise
Patrick Industries, Inc. Price and EPS Surprise | Patrick Industries, Inc. Quote
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020. Click here for the 6 trades >>