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Construction Stocks' Jul 26 Earnings Roster: MLM, DHI, PHM
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The construction companies appear to be on solid footing given strong demand, aided by favorable household formation trends and a strengthening macro backdrop. Elevated construction spending in the United States, an impressive labor market scenario, moderate inflation and Trump’s impetus to boost infrastructure spending seem to be vital growth catalysts for the companies under the sector.
Indeed, limited land availability, higher land/labor and material costs, as well as a constrained mortgage environment are restricting the construction stocks from responding to the growing demand. Then again, higher demand, booming economy along with solid job market will keep the momentum alive.
According to the latest Earnings Preview, the construction sector’s earnings, within the S&P 500 cohort, are expected to increase 46.4% in Q2 compared with 49.7% in the preceding quarter. Revenues are also expected to improve 22.7% (versus 20.9% growth in Q1).
So far, some of the leading companies in the construction sector have reported Q2 results. NVR, Inc. (NVR - Free Report) , one of the country’s largest homebuilding and mortgage-banking companies, reported second-quarter 2018 earnings of $49.05 per share, beating the Zacks Consensus Estimate of $46.21 by 6.2%. Earnings also increased 39% from the prior-year quarter, primarily owing to lower tax rate.
United Rentals’ (URI - Free Report) second-quarter 2018 earnings and revenues surpassed the Zacks Consensus Estimate, and also improved year over year. The upside can be attributed to strong gains in volume and rates, along with robust demand across its construction and industrial verticals in the United States, as well as Canada.
Let us take a look at how the following construction companies are placed ahead of their quarterly release on Jul 26.
Our research shows that when a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) stock is combined with a positive Earnings ESP, the chance of beating earnings estimates is high. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Martin Marietta Materials, Inc. (MLM - Free Report) is slated to report second-quarter 2018 results on Jul 26, before the opening bell. In the last reported quarter, the company’s earnings missed the Zacks Consensus Estimate by 36%. In fact, Martin Marietta has a dismal earnings surprise history. The company’s earnings fell shy of expectations in three of the last four quarters, with the average miss being 3.27%.
Martin Marietta has the right combination of the two key ingredients to increase the odds of an earnings beat. It has an Earnings ESP of +0.42% and sports a Zacks Rank #1.
Overall, for the second quarter, the Zacks Consensus Estimate for earnings is pegged at $2.84, reflecting 26.2% year-over-year growth, while that of revenues stands at $1.18 billion, implying 18.1% year-over-year improvement (Read more: Martin Marietta to Post Q2 Earnings: What's in Store?).
Martin Marietta Materials, Inc. Price and EPS Surprise
D.R. Horton Inc. (DHI - Free Report) is scheduled to report third-quarter fiscal 2018 results on Jul 26, before the opening bell.
In the last reported quarter, the homebuilder delivered a positive earnings surprise of 5.81%. The company surpassed the Zacks Consensus Estimate for earnings in three of the trailing four quarters, with the average being 6.86%.
Our proven model does not show that D.R. Horton is likely to beat earnings estimates in the to-be-reported quarter, as it has an Earnings ESP of +1.36% and a Zacks Rank #4 (Sell). It is to be noted that 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.
For the fiscal third quarter, the Zacks Consensus Estimate for total revenues stands at $4.33 billion, implying 14.6% year-over-year growth. Meanwhile, the consensus mark for earnings is pegged at $1.08 per share, reflecting a solid increase of 42.1% year over year (Read more: Will Higher Demand Aid D.R. Horton's Q3 Earnings?).
PulteGroup Inc. (PHM - Free Report) is scheduled to report second-quarter 2018 results on Jul 26, before the market opens.
In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 34.1%. It surpassed estimates in all the trailing four quarters, with an average of 10.5%.
For the second quarter, the Zacks Consensus Estimate for earnings is pegged at 74 cents per share, reflecting an increase of 57.5% year over year, while that of revenues stands at $2.37 billion, implying 17.4% year-over-year growth (Read more: What's in Store for PulteGroup This Earnings Season?).
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.
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Construction Stocks' Jul 26 Earnings Roster: MLM, DHI, PHM
The construction companies appear to be on solid footing given strong demand, aided by favorable household formation trends and a strengthening macro backdrop. Elevated construction spending in the United States, an impressive labor market scenario, moderate inflation and Trump’s impetus to boost infrastructure spending seem to be vital growth catalysts for the companies under the sector.
Indeed, limited land availability, higher land/labor and material costs, as well as a constrained mortgage environment are restricting the construction stocks from responding to the growing demand. Then again, higher demand, booming economy along with solid job market will keep the momentum alive.
According to the latest Earnings Preview, the construction sector’s earnings, within the S&P 500 cohort, are expected to increase 46.4% in Q2 compared with 49.7% in the preceding quarter. Revenues are also expected to improve 22.7% (versus 20.9% growth in Q1).
So far, some of the leading companies in the construction sector have reported Q2 results. NVR, Inc. (NVR - Free Report) , one of the country’s largest homebuilding and mortgage-banking companies, reported second-quarter 2018 earnings of $49.05 per share, beating the Zacks Consensus Estimate of $46.21 by 6.2%. Earnings also increased 39% from the prior-year quarter, primarily owing to lower tax rate.
United Rentals’ (URI - Free Report) second-quarter 2018 earnings and revenues surpassed the Zacks Consensus Estimate, and also improved year over year. The upside can be attributed to strong gains in volume and rates, along with robust demand across its construction and industrial verticals in the United States, as well as Canada.
Let us take a look at how the following construction companies are placed ahead of their quarterly release on Jul 26.
Our research shows that when a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) stock is combined with a positive Earnings ESP, the chance of beating earnings estimates is high. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Martin Marietta Materials, Inc. (MLM - Free Report) is slated to report second-quarter 2018 results on Jul 26, before the opening bell. In the last reported quarter, the company’s earnings missed the Zacks Consensus Estimate by 36%. In fact, Martin Marietta has a dismal earnings surprise history. The company’s earnings fell shy of expectations in three of the last four quarters, with the average miss being 3.27%.
Martin Marietta has the right combination of the two key ingredients to increase the odds of an earnings beat. It has an Earnings ESP of +0.42% and sports a Zacks Rank #1.
Overall, for the second quarter, the Zacks Consensus Estimate for earnings is pegged at $2.84, reflecting 26.2% year-over-year growth, while that of revenues stands at $1.18 billion, implying 18.1% year-over-year improvement (Read more: Martin Marietta to Post Q2 Earnings: What's in Store?).
Martin Marietta Materials, Inc. Price and EPS Surprise
Martin Marietta Materials, Inc. Price and EPS Surprise | Martin Marietta Materials, Inc. Quote
D.R. Horton Inc. (DHI - Free Report) is scheduled to report third-quarter fiscal 2018 results on Jul 26, before the opening bell.
In the last reported quarter, the homebuilder delivered a positive earnings surprise of 5.81%. The company surpassed the Zacks Consensus Estimate for earnings in three of the trailing four quarters, with the average being 6.86%.
Our proven model does not show that D.R. Horton is likely to beat earnings estimates in the to-be-reported quarter, as it has an Earnings ESP of +1.36% and a Zacks Rank #4 (Sell). It is to be noted that 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.
For the fiscal third quarter, the Zacks Consensus Estimate for total revenues stands at $4.33 billion, implying 14.6% year-over-year growth. Meanwhile, the consensus mark for earnings is pegged at $1.08 per share, reflecting a solid increase of 42.1% year over year (Read more: Will Higher Demand Aid D.R. Horton's Q3 Earnings?).
D.R. Horton, Inc. Price and EPS Surprise
D.R. Horton, Inc. Price and EPS Surprise | D.R. Horton, Inc. Quote
PulteGroup Inc. (PHM - Free Report) is scheduled to report second-quarter 2018 results on Jul 26, before the market opens.
In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 34.1%. It surpassed estimates in all the trailing four quarters, with an average of 10.5%.
Our proven model does not conclusively indicate an earnings beat for PulteGroup as it has an Earnings ESP of -4.22% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
For the second quarter, the Zacks Consensus Estimate for earnings is pegged at 74 cents per share, reflecting an increase of 57.5% year over year, while that of revenues stands at $2.37 billion, implying 17.4% year-over-year growth (Read more: What's in Store for PulteGroup This Earnings Season?).
PulteGroup, Inc. Price and EPS Surprise
PulteGroup, Inc. Price and EPS Surprise | PulteGroup, 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 >>