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L.B. Foster (FSTR) to Post Q3 earnings: What's in Store?

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L.B. Foster Company (FSTR - Free Report) will release third-quarter 2020 results after the closing bell on Nov 4. Benefits of improved order activities are likely to get reflected on the results of its Rail and Construction segments.  However, the company is expected to have faced headwinds from challenges in the oil and gas market.

The company delivered an earnings surprise of 982.9%, on average, over the trailing four quarters. It posted an earnings surprise of 4,200% in the last reported quarter.

Shares of L.B. Foster are down 30.1% year to date, compared with a 14% decline of its industry.

 


 

Let’s see how things are shaping up for this announcement.

What do the Estimates Say?

The Zacks Consensus Estimate for third-quarter sales for L.B. Foster is currently pegged at $141.1 million, which suggests an 8.5% decline year over year.

Some Factors at Play

L.B. Foster is likely to have gained from improved order activities across its Rail and Construction segments in the quarter to be reported. A recovery in rail services, especially for the London Crossrail project, is expected to have aided the Rail segment. However, lower rail traffic volumes due to the coronavirus pandemic are likely to have impacted demand for consumable products in the September quarter. Moreover, the Construction unit is likely to have benefited from healthy order activities in Fabricated Bridge and Precast Concrete Products divisions.

However, the company’s Tubular and Energy Services segment is expected to have faced headwinds, in the third quarter, from challenging oil and gas market dynamics due to the pandemic. Reduced drilling activities and spending cuts by U.S. exploration and production companies are likely to have hurt demand for the company’s test, inspection and threading services in the to-be-reported quarter.

 

L.B. Foster Company Price and EPS Surprise

 

L.B. Foster Company Price and EPS Surprise

L.B. Foster Company price-eps-surprise | L.B. Foster Company Quote

 

Zacks Model

Our proven model does not conclusively predict an earnings beat for L.B. Foster this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here.

Earnings ESP: Earnings ESP for L.B. Foster is 0.00%. The Zacks Consensus Estimate for earnings for the third quarter is currently pegged at 23 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: L.B. Foster currently carries a Zacks Rank #2.

Stocks That Warrant a Look

Here are some companies you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:

Green Plains Inc. (GPRE - Free Report) , scheduled to release earnings on Nov 4, has an Earnings ESP of +1.82% and carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Albemarle Corporation (ALB - Free Report) , scheduled to release earnings on Nov 4, has an Earnings ESP of +5.73% and carries a Zacks Rank #3.

Cabot Corporation (CBT - Free Report) , scheduled to release earnings on Nov 9, has an Earnings ESP of +26.44% and carries a Zacks Rank #3.

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