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Construction Stock Q1 Earnings Due on May 3: FLR, PWR & MDC
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The first-quarter earnings season is well past the halfway mark, with earnings and revenue growth on track to reach its highest level in the last seven years.
Around 267 S&P 500 companies have reported first-quarter 2018 financial numbers as of Apr 27, reflecting a decent performance across the earnings season. Total earnings for these companies increased 25.1% year over year on 10% higher revenues, with 76.8% beating earnings estimates and 73.8% surpassing top-line expectations. Based on the hitherto observed pattern, the first quarter is anticipated to register an impressive double-digit percentage earnings growth year over year.
Per the latest Earnings Preview, overall earnings for S&P 500 companies are now expected to rise 22.6% on 8.4% increase in revenues. This represents an improved growth projection from the previous quarter, driven by a corporate tax overhaul and relatively healthy job data. Also, experts believe that the bottom line is likely to grow steadily in 2018 and beyond. Notably, total earnings for the S&P 500 index are expected to rise 18.5% on a year-over-year basis owing to 5.5% improvement in revenues, which if realized will mark the highest annual growth pace for the index since 2010.
Given this healthy backdrop, most sectors are anticipated to deliver an impressive performance in this reporting cycle. For instance, per the above report, 13 of the 16 Zacks sectors are projected to deliver double-digit earnings growth on a year-over-year basis. Only the Auto sector is expected to end the quarter with earnings decline.
Of these high-flying sectors, Construction appears to be quite strong. For the sector, earnings are likely to increase 46.7% year over year, while revenues are anticipated to rise 17.3%. Moreover, factors such as a rise in GDP, low unemployment level, strong job additions and positive consumer confidence work in favor of the sector. Additionally, President Trump’s business-friendly policies, including tax cuts and repeal of regulations, are expected to mitigate some of the risks arising from the recent imposition of tariffs on imported steel and aluminum.
Notably, per the latest U.S. Census Bureau report, construction spending during March dropped 1.7% from the previous month. However, for the first three months of 2018, the metric increased 5.5% compared with the same period last year. Amid this backdrop, it will be interesting to wait and see how some of the Construction stocks fare when the companies release their results on May 3.
Fluor Corporation (FLR - Free Report) , a premium engineering and construction firm is scheduled to report results for the first quarter of 2018. The company has surpassed estimates thrice in the trailing four quarters, with an average positive surprise of 8.4%. In the last reported quarter, it surpassed the Zacks Consensus Estimate by 11.1%. Notably, the company’s long-term prospects remain strong backed by existing growth opportunities in renewable energy, gas-fired combined cycle generation and air emissions compliance projects for current coal-fired power plants.
The Zacks Consensus Estimate for revenues in the to-be-reported quarter is pegged at $4,838 million, relatively flat compared with its reported value in the year-ago quarter. The consensus estimate for earnings per share stands at 81 cents, indicating an improvement of 42.1% from the prior-year quarter.
Our quantitative model hints at an earnings beat for this Zacks Rank #2 (Buy) company in the upcoming quarterly results. This is because Fluorhas an Earnings ESP of +2.28% in addition to a favorable Zacks Rank. (Read more: Will Fluor Surpass Estimates This Earnings Season?)
Quanta Services, Inc. (PWR - Free Report) , which will report first-quarter 2018 results before the market opens, has a Zacks Rank #2 and an Earnings ESP of 0.00%, a combination which makes surprise prediction difficult. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
The Zacks Consensus Estimate for first-quarter revenues stands at $2,061 million, reflecting year-over-year decline of 5.4%. The consensus mark for earnings per share is pegged at 26 cents, reflecting decline of 23.5% compared with the year-ago quarter.
Notably, Quanta Services’ earnings surprise history is decent, with two beats and two misses in the trailing four quarters. In the last reported quarter, the company reported earnings of 45 cents per share, beating the Zacks Consensus Estimate by 2.3%. (Read more: What's in the Cards for Quanta Services Q1 Earnings?)
M.D.C. Holdings, Inc. is also scheduled to report first-quarter 2018 results. The company, which is a provider of homebuilding and financial service businesses in the United States, surpassed estimates thrice in the trailing four quarters, with an average positive surprise of 29.2%. In the last reported quarter, the company missed the consensus estimate by 9.2%.
The Zacks Consensus Estimate for revenues in the to-be-reported quarter is pegged at $590 million, reflecting growth of 1.4% on a year-over-year basis. The consensus mark for earnings per share stands at 53 cents, reflecting growth of 32.5% from the prior-year quarter.
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Construction Stock Q1 Earnings Due on May 3: FLR, PWR & MDC
The first-quarter earnings season is well past the halfway mark, with earnings and revenue growth on track to reach its highest level in the last seven years.
Around 267 S&P 500 companies have reported first-quarter 2018 financial numbers as of Apr 27, reflecting a decent performance across the earnings season. Total earnings for these companies increased 25.1% year over year on 10% higher revenues, with 76.8% beating earnings estimates and 73.8% surpassing top-line expectations. Based on the hitherto observed pattern, the first quarter is anticipated to register an impressive double-digit percentage earnings growth year over year.
Per the latest Earnings Preview, overall earnings for S&P 500 companies are now expected to rise 22.6% on 8.4% increase in revenues. This represents an improved growth projection from the previous quarter, driven by a corporate tax overhaul and relatively healthy job data. Also, experts believe that the bottom line is likely to grow steadily in 2018 and beyond. Notably, total earnings for the S&P 500 index are expected to rise 18.5% on a year-over-year basis owing to 5.5% improvement in revenues, which if realized will mark the highest annual growth pace for the index since 2010.
Given this healthy backdrop, most sectors are anticipated to deliver an impressive performance in this reporting cycle. For instance, per the above report, 13 of the 16 Zacks sectors are projected to deliver double-digit earnings growth on a year-over-year basis. Only the Auto sector is expected to end the quarter with earnings decline.
Of these high-flying sectors, Construction appears to be quite strong. For the sector, earnings are likely to increase 46.7% year over year, while revenues are anticipated to rise 17.3%. Moreover, factors such as a rise in GDP, low unemployment level, strong job additions and positive consumer confidence work in favor of the sector. Additionally, President Trump’s business-friendly policies, including tax cuts and repeal of regulations, are expected to mitigate some of the risks arising from the recent imposition of tariffs on imported steel and aluminum.
Notably, per the latest U.S. Census Bureau report, construction spending during March dropped 1.7% from the previous month. However, for the first three months of 2018, the metric increased 5.5% compared with the same period last year. Amid this backdrop, it will be interesting to wait and see how some of the Construction stocks fare when the companies release their results on May 3.
Fluor Corporation (FLR - Free Report) , a premium engineering and construction firm is scheduled to report results for the first quarter of 2018. The company has surpassed estimates thrice in the trailing four quarters, with an average positive surprise of 8.4%. In the last reported quarter, it surpassed the Zacks Consensus Estimate by 11.1%. Notably, the company’s long-term prospects remain strong backed by existing growth opportunities in renewable energy, gas-fired combined cycle generation and air emissions compliance projects for current coal-fired power plants.
Fluor Corporation Price and EPS Surprise
Fluor Corporation Price and EPS Surprise | Fluor Corporation Quote
The Zacks Consensus Estimate for revenues in the to-be-reported quarter is pegged at $4,838 million, relatively flat compared with its reported value in the year-ago quarter. The consensus estimate for earnings per share stands at 81 cents, indicating an improvement of 42.1% from the prior-year quarter.
Our quantitative model hints at an earnings beat for this Zacks Rank #2 (Buy) company in the upcoming quarterly results. This is because Fluorhas an Earnings ESP of +2.28% in addition to a favorable Zacks Rank. (Read more: Will Fluor Surpass Estimates This Earnings Season?)
Quanta Services, Inc. (PWR - Free Report) , which will report first-quarter 2018 results before the market opens, has a Zacks Rank #2 and an Earnings ESP of 0.00%, a combination which makes surprise prediction difficult. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Quanta Services, Inc. Price and EPS Surprise
Quanta Services, Inc. Price and EPS Surprise | Quanta Services, Inc. Quote
The Zacks Consensus Estimate for first-quarter revenues stands at $2,061 million, reflecting year-over-year decline of 5.4%. The consensus mark for earnings per share is pegged at 26 cents, reflecting decline of 23.5% compared with the year-ago quarter.
Notably, Quanta Services’ earnings surprise history is decent, with two beats and two misses in the trailing four quarters. In the last reported quarter, the company reported earnings of 45 cents per share, beating the Zacks Consensus Estimate by 2.3%. (Read more: What's in the Cards for Quanta Services Q1 Earnings?)
M.D.C. Holdings, Inc. is also scheduled to report first-quarter 2018 results. The company, which is a provider of homebuilding and financial service businesses in the United States, surpassed estimates thrice in the trailing four quarters, with an average positive surprise of 29.2%. In the last reported quarter, the company missed the consensus estimate by 9.2%.
M.D.C. Holdings, Inc. Price and EPS Surprise
M.D.C. Holdings, Inc. Price and EPS Surprise | M.D.C. Holdings, Inc. Quote
The Zacks Consensus Estimate for revenues in the to-be-reported quarter is pegged at $590 million, reflecting growth of 1.4% on a year-over-year basis. The consensus mark for earnings per share stands at 53 cents, reflecting growth of 32.5% from the prior-year quarter.
Our proven model show that M.D.C. Holdings is likely to beat earnings this quarter as it possess the key components. The company has an Earnings ESP of +9.43% and a Zacks Rank #3 (Hold).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>