The second quarter earnings season is in full swing. Despite volatility in the U.S. stock market, uncertainty surrounding the Fed rate hike, panic in the global financial markets triggered by the unexpected Brexit vote and volatile gasoline prices, the homebuilding market is gaining strength.
Despite a weak start this year amid equity market volatility and global concerns, the construction sector seems to have recovered on the back of strong housing fundamentals. Positives like an improving economy, modest wage growth, low unemployment levels, low interest rates, positive consumer confidence and a tight supply situation raise optimism about the sector’s performance for the second half.
Last week, a couple of leading homebuilding companies reported their earnings. Atlanta-based homebuilder PulteGroup Inc. (PHM - Free Report) reported second quarter results on Jul 21, beating estimates for both earnings and sales. However, another homebuilding company - D.R. Horton, Inc. (DHI - Free Report) - reporting on the same day did not fare as well in the third quarter of fiscal 2016 with sales missing the Zacks Consensus Estimate and earnings coming in line with the same. However, the Texas-based homebuilder’s order trends remained strong in the quarter.
In addition to home construction, the home remodeling market is also picking up pace. Improved construction and remodeling activity increases demand for home furnishing products.
On Jul 27, three home furnishing companies are scheduled to report their quarterly results. Let us look at how these companies are placed ahead of their releases.
The Dixie Group, Inc. (DXYN - Free Report)
Dixie is set to report second-quarter 2016 results before market opens.
Last quarter, Dixie posted a negative surprise of 66.67%. In fact, the earnings history of this home furnishing company is rather grim. Dixie missed estimates in the past four quarters, resulting in an average negative surprise of 68.51%.
It has an Earnings ESP of 0.00% and a Zacks Rank #3 (Hold). The Zacks Consensus Estimate for the quarter is pegged at a loss of 6 cents.
Interface Inc. (TILE - Free Report)
Interface will report its second-quarter 2016 earnings results after market close.
Last quarter, Interface posted a positive surprise of 17.65%. The company has surpassed estimates in two out of the past four quarters and has an average positive surprise of 8.02%.
The company has an Earnings ESP of 0.00% and a Zacks Rank #3. The Zacks Consensus Estimate for the quarter is pegged at 28 cents.
Fortune Brands Home & Security Inc
Fortune Brands will report its second-quarter 2016 earnings results after market close.
Last quarter, Fortune Brands posted a positive surprise of 18.18%. The company has surpassed estimates in three out of the past four quarters and has an average positive surprise of 4.36%.
The company has an Earnings ESP of -1.37% and a Zacks Rank #3. The Zacks Consensus Estimate for the quarter is pegged at 73 cents.
Conclusion
With the rise in demand for homes, remodeling activities and an improving job market in 2016, home furnishing companies such as the ones discussed above are expected to witness strong demand for their products.
Stay Tuned! Check later on our full write-up on earnings releases of these stocks.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
The second quarter earnings season is in full swing. Despite volatility in the U.S. stock market, uncertainty surrounding the Fed rate hike, panic in the global financial markets triggered by the unexpected Brexit vote and volatile gasoline prices, the homebuilding market is gaining strength.
Despite a weak start this year amid equity market volatility and global concerns, the construction sector seems to have recovered on the back of strong housing fundamentals. Positives like an improving economy, modest wage growth, low unemployment levels, low interest rates, positive consumer confidence and a tight supply situation raise optimism about the sector’s performance for the second half.
Last week, a couple of leading homebuilding companies reported their earnings. Atlanta-based homebuilder PulteGroup Inc. (PHM - Free Report) reported second quarter results on Jul 21, beating estimates for both earnings and sales. However, another homebuilding company - D.R. Horton, Inc. (DHI - Free Report) - reporting on the same day did not fare as well in the third quarter of fiscal 2016 with sales missing the Zacks Consensus Estimate and earnings coming in line with the same. However, the Texas-based homebuilder’s order trends remained strong in the quarter.
In addition to home construction, the home remodeling market is also picking up pace. Improved construction and remodeling activity increases demand for home furnishing products.
On Jul 27, three home furnishing companies are scheduled to report their quarterly results. Let us look at how these companies are placed ahead of their releases.
The Dixie Group, Inc. (DXYN - Free Report)
Dixie is set to report second-quarter 2016 results before market opens.
Last quarter, Dixie posted a negative surprise of 66.67%. In fact, the earnings history of this home furnishing company is rather grim. Dixie missed estimates in the past four quarters, resulting in an average negative surprise of 68.51%.
It has an Earnings ESP of 0.00% and a Zacks Rank #3 (Hold). The Zacks Consensus Estimate for the quarter is pegged at a loss of 6 cents.
Interface Inc. (TILE - Free Report)
Interface will report its second-quarter 2016 earnings results after market close.
Last quarter, Interface posted a positive surprise of 17.65%. The company has surpassed estimates in two out of the past four quarters and has an average positive surprise of 8.02%.
The company has an Earnings ESP of 0.00% and a Zacks Rank #3. The Zacks Consensus Estimate for the quarter is pegged at 28 cents.
Fortune Brands Home & Security Inc
Fortune Brands will report its second-quarter 2016 earnings results after market close.
Last quarter, Fortune Brands posted a positive surprise of 18.18%. The company has surpassed estimates in three out of the past four quarters and has an average positive surprise of 4.36%.
The company has an Earnings ESP of -1.37% and a Zacks Rank #3. The Zacks Consensus Estimate for the quarter is pegged at 73 cents.
Conclusion
With the rise in demand for homes, remodeling activities and an improving job market in 2016, home furnishing companies such as the ones discussed above are expected to witness strong demand for their products.
Stay Tuned! Check later on our full write-up on earnings releases of these stocks.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Get the latest research report on PHM - FREE
Get the latest research report on DHI - FREE
Get the latest research report on DXYN - FREE
Get the latest research report on TILE - FREE