We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Peek Into Construction Earnings Early Next Week: RPM, LII
Read MoreHide Full Article
So far, we have seen Q2 results from only 15.4% of the construction companies in the S&P 500 cohort. Prominent construction companies like KB Home (KBH - Free Report) , Lennar Corp. (LEN - Free Report) and United Rentals, Inc. (URI - Free Report) kick off the earnings season with both its top and bottom lines beating estimates.
Investor sentiment seems to be quite high at the start of the second-quarter reporting cycle, given the solid earnings outlook and favorable construction sector’s fundamentals. Per the latest Earnings Trends, 100% companies posted earnings as well as revenue beat. Although total earnings of these construction companies have decreased by a meager 0.7% so far, its revenues have increased 15.5%.
Overall, construction companies seem to be on solid ground. The construction sector’s earnings are expected to increase 15.8% in Q2 compared with 9% in the earlier quarter. Revenues are also expected to improve 8.4% (6.8% growth in Q1).
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.
Early next week, performance of other construction companies like Lennox International, Inc. (LII - Free Report) and RPM International Inc. (RPM - Free Report) will be closely watched to evaluate their position in investors’ portfolio.
Let’s take a look at how these two construction companies are placed ahead of their quarterly earnings releases on Jul 24.
RPM International Inc. is slated to release its fourth-quarter fiscal 2017 and year-end results on Jul 24, 2017, before the market opens.
Last quarter, the company delivered a positive earnings surprise of 27.27%. The company surpassed estimates in three of the last four quarters, with an average beat of 7.07%.
Currently, the company has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate is pegged at $1.17.
However, the company carries a Zacks Rank #4 (Sell). We caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is witnessing negative estimate revisions.
Our proven 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 confidently predict an earnings beat. However, this is not the case here, as RPM carries a Zacks Rank #4 and an Earnings ESP of 0.00%.You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
For the fiscal fourth quarter, the Zacks Consensus Estimate for earnings is pegged at $1.17, reflecting a 3.5% year-over-year increase. Meanwhile, our estimate for revenues is pegged at $1.5 billion, implying a 5.5% increase.
Lennox International, Inc., a leading global provider of climate control solutions, is slated to release second-quarter 2017 results on Jul 24, before the market opens. Last quarter, the company delivered a positive earnings surprise of 16.88%. The company has a solid earnings surprise history, surpassing estimates in each of the trailing four quarters, with an average beat of 8.81%.
Lennox might beat earnings this season because it currently has a Zacks Rank #3 and an Earnings ESP of +1.45%. This is because the Most Accurate estimate of $2.80 is higher than the Zacks Consensus Estimate of $2.76.
Further, the Zacks Consensus Estimate of $2.76 per share for the second quarter reflects growth of 8.9% from the year-ago quarter. Also, analysts polled by Zacks expect revenue of $1.09 billion for the quarter, representing a 6.5% upside from the prior-year quarter (read more: Lennox Gears Up for Q2: Another Earnings Beat Coming?).
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
Image: Bigstock
Peek Into Construction Earnings Early Next Week: RPM, LII
So far, we have seen Q2 results from only 15.4% of the construction companies in the S&P 500 cohort. Prominent construction companies like KB Home (KBH - Free Report) , Lennar Corp. (LEN - Free Report) and United Rentals, Inc. (URI - Free Report) kick off the earnings season with both its top and bottom lines beating estimates.
Investor sentiment seems to be quite high at the start of the second-quarter reporting cycle, given the solid earnings outlook and favorable construction sector’s fundamentals. Per the latest Earnings Trends, 100% companies posted earnings as well as revenue beat. Although total earnings of these construction companies have decreased by a meager 0.7% so far, its revenues have increased 15.5%.
Overall, construction companies seem to be on solid ground. The construction sector’s earnings are expected to increase 15.8% in Q2 compared with 9% in the earlier quarter. Revenues are also expected to improve 8.4% (6.8% growth in Q1).
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.
Early next week, performance of other construction companies like Lennox International, Inc. (LII - Free Report) and RPM International Inc. (RPM - Free Report) will be closely watched to evaluate their position in investors’ portfolio.
Let’s take a look at how these two construction companies are placed ahead of their quarterly earnings releases on Jul 24.
RPM International Inc. is slated to release its fourth-quarter fiscal 2017 and year-end results on Jul 24, 2017, before the market opens.
Last quarter, the company delivered a positive earnings surprise of 27.27%. The company surpassed estimates in three of the last four quarters, with an average beat of 7.07%.
Currently, the company has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate is pegged at $1.17.
However, the company carries a Zacks Rank #4 (Sell). We caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is witnessing negative estimate revisions.
Our proven 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 confidently predict an earnings beat. However, this is not the case here, as RPM carries a Zacks Rank #4 and an Earnings ESP of 0.00%.You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
For the fiscal fourth quarter, the Zacks Consensus Estimate for earnings is pegged at $1.17, reflecting a 3.5% year-over-year increase. Meanwhile, our estimate for revenues is pegged at $1.5 billion, implying a 5.5% increase.
RPM International Inc. Price and EPS Surprise
RPM International Inc. Price and EPS Surprise | RPM International Inc. Quote
Lennox International, Inc., a leading global provider of climate control solutions, is slated to release second-quarter 2017 results on Jul 24, before the market opens. Last quarter, the company delivered a positive earnings surprise of 16.88%. The company has a solid earnings surprise history, surpassing estimates in each of the trailing four quarters, with an average beat of 8.81%.
Lennox might beat earnings this season because it currently has a Zacks Rank #3 and an Earnings ESP of +1.45%. This is because the Most Accurate estimate of $2.80 is higher than the Zacks Consensus Estimate of $2.76.
Further, the Zacks Consensus Estimate of $2.76 per share for the second quarter reflects growth of 8.9% from the year-ago quarter. Also, analysts polled by Zacks expect revenue of $1.09 billion for the quarter, representing a 6.5% upside from the prior-year quarter (read more: Lennox Gears Up for Q2: Another Earnings Beat Coming?).
Lennox International, Inc. Price and EPS Surprise
Lennox International, Inc. Price and EPS Surprise | Lennox International, Inc. Quote
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>