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U.S. Concrete (USCR) to Report Q2 Earnings: What's in Store?

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U.S. Concrete, Inc. (USCR - Free Report) is scheduled to release second-quarter 2020 results on Aug 4, before the opening bell.

In the last reported quarter, the company’s adjusted loss of 4 cents per share was wider than expected. The company reported break-even earnings in first-quarter 2019. On a year-over-year basis, first-quarter 2020 revenues improved 0.4%.

This leading producer of construction materials reported lower-than-expected earnings in three of the last four quarters, with the average negative surprise being 12.9%.

Estimate Revision Scenario

The Zacks Consensus Estimate for second–quarter loss has been unchanged at 24 cents per share over the past 30 days. In the year-ago quarter, the company reported earnings of 23 cents per share. The consensus mark for revenues is $306.4 million, suggesting a 16.6% year-over-year decline.

U S Concrete, Inc. Price and EPS Surprise

U S Concrete, Inc. Price and EPS Surprise

U S Concrete, Inc. price-eps-surprise | U S Concrete, Inc. Quote

Factors to Note

U.S. Concrete’s second-quarter earnings and sales are expected to have been hit by disruptions caused by the coronavirus outbreak. Although construction has been designated as an essential industry in most jurisdictions, some of the company’s projects in New York and San Francisco have been delayed due to the definition of 'essential construction work' in those local markets. Furthermore, Texas was more impacted by weather than the COVID-19 pandemic.

In terms of end market, it expects distribution, warehousing, and data center to have remained healthy in the second quarter, while office and retail are expected to have been under pressure. Overall, U.S. Concrete is expected to have generated lower revenues, given reduced state DOT spending. Notably, its business and earnings have been sensitive to changes in construction spending, particularly housing and public construction in high-growth markets of San Francisco, Dallas/Fort Worth, as well as the New York/New Jersey metro area.

What Our Quantitative Model Predicts

Our proven model does not conclusively predict an earnings beat for U.S. Concrete this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.

Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is -100.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: U.S. Concrete currently carries a Zacks Rank #3.

You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks Worth a Look

Here are some companies in the Zacks Construction sector, which according to our model have the right combination of elements to post an earnings beat in their respective quarters to be reported.

TopBuild Corp. (BLD - Free Report) has an Earnings ESP of +29.11% and holds a Zacks Rank #1.

Foundation Building Materials, Inc. (FBM - Free Report) has an Earnings ESP of +28.57% and carries a Zacks Rank #3.

KBR, Inc. (KBR - Free Report) has an Earnings ESP of +11.11% and carries a Zacks Rank #3.

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