PotlatchDeltic Corporation ( PCH Quick Quote PCH - Free Report) is scheduled to report second-quarter 2021 results on Jul 26, after the closing bell. In the last reported quarter, the company’s earnings and revenues beat the Zacks Consensus Estimate by 13.5% and 5.5%, respectively. On a year-over-year basis, earnings and revenues grew 781.8% and 69.6%, respectively. PotlatchDeltic’s earnings topped the consensus mark in three of the last four quarters and missed on another occasion, with the average surprise being 128.1%. Trend in Estimate Revision
For the quarter to be reported, the Zacks Consensus Estimate for earnings per share has decreased 0.7% to $2.66 over the past 30 days. Nonetheless, the estimated figure indicates 6,550% growth from the year-ago level. The consensus mark for revenues is pegged at $430.5 million, suggesting a 137.1% increase from the year-ago reported figure of $181.6 million.
Key Factors to Note
PotlatchDeltic’s earnings and revenues are expected to have increased in the second quarter. As the company’s performance is highly associated with the housing market, solid momentum in the markets served is expected to benefit the quarterly results. Solid demand for new housing across the United States might have helped it propel the entire mix of businesses that includes Timberlands, Wood Products and Real Estate. Housing markets have been strong, given Fed’s dovish stance, low borrowing costs and lack of available supply.
Also, robust repair & remodel activities have been benefiting the company. With the opening of the economy and increasing trend of consumers to invest more in homes amid the pandemic, demand for housing and building material products has been improving. Apart from remarkable recovery in single-family housing construction, repair/remodel activity has also been robust, supported by do-it-yourself and professional activity. In addition to solid sales volume and higher average lumber price realizations, the company’s focus on accretive acquisitions is likely to have contributed to the top line. The Zacks Consensus Estimate for the Timberland segment’s revenues is pegged at $108 million, implying a 61.2% improvement from second-quarter 2020. The Zacks Consensus Estimate for the Wood Products segment’s revenues is pegged at $341 million, implying a 170.6% improvement from the year-ago period. The Zacks Consensus Estimate for the Real Estate segment’s revenues is pegged at $11 million, implying a decline from $13 million a year ago. Meanwhile, it expects corporate expense to be higher than the typical level for the second quarter, primarily due to bonus accruals related to strong results. Overall, PotlatchDeltic anticipates second-quarter total adjusted EBITDA to be higher than the first quarter, which would establish a fourth consecutive new quarterly record for the company. What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for PotlatchDeltic this time around. That is because a stock needs to have both a positive
Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. Unfortunately, that is not the case here, as you will see below. Earnings ESP: The company has an Earnings ESP of -8.91%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. Zacks Rank: Currently, PotlatchDeltic carries a Zacks Rank #1. You can see . the complete list of today’s Zacks #1 Rank stocks here Stocks With Favorable Combination
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. Watsco, Inc. ( WSO Quick Quote WSO - Free Report) has an Earnings ESP of +3.46% and a Zacks Rank #2. ChampionX Corporation ( CHX Quick Quote CHX - Free Report) has an Earnings ESP of +10.00% and holds a Zacks Rank #3. United Rentals, Inc. ( URI Quick Quote URI - Free Report) has an Earnings ESP of +6.18% and a Zacks Rank #2.