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Patrick (PATK) to Post Q2 Earnings: What's in the Offing?

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Patrick Industries, Inc. (PATK - Free Report) is scheduled to report second-quarter 2021 results on Jul 29, before the opening bell.

In the last reported quarter, the company’s earnings and revenues surpassed the Zacks Consensus Estimate by 36.4% and 16.6%, respectively. The metrics improved 97.8% and 44.3% year over year, respectively, backed by growth across the sectors, led by RV and marine markets.

Trend in Estimate Revision

The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share has moved 2.8% north over the past 60 days to $1.83. This indicates a 6,000% increase from the year-ago earnings of 3 cents per share. The consensus estimate for revenues is $878.8 million, suggesting a 107.2% year-over-year increase.

Patrick Industries, Inc. Price and EPS Surprise

Patrick Industries, Inc. Price and EPS Surprise

Patrick Industries, Inc. price-eps-surprise | Patrick Industries, Inc. Quote

Factors to Note

Patrick’s second-quarter earnings and revenues are likely to have improved on solid leisure lifestyle markets. It has been banking on strength in both retail and wholesale shipments in recreational vehicle, and boating markets. Outdoor recreation activity remained strong, which ultimately boosted demand in recreational vehicle (RV) and marine markets.

This apart, accretive acquisitions and robust prospects in housing, and the repair and remodel space are likely to have supported growth in to-be-reported quarter.

The Zacks Consensus Estimate for RV revenues is pegged at $520 million, which indicates an increase of 154.8% from $204.1 million in the year-ago period. The same for Marine’s revenues is $136 million, indicating a 130.5% increase from $59 million reported in the prior-year period. The consensus mark for manufactured housing or MH revenues is $119 million. This indicates a year-over-year rise of 31.8% from $90.3 million a year ago. The consensus mark for Industrial revenues is $83 million, indicating 17.6% growth from the year-ago figure of $70.6 million.

What the Zacks Model Says

Our proven model does not conclusively predict an earnings beat for Patrick this time around. 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. Unfortunately, this is not the case here. You can see the complete list of today’s Zacks #1 Rank stocks here.

Earnings ESP: The Earnings ESP for the company is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: It currently carries a Zacks Rank #3.

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.

ChampionX Corporation (CHX - Free Report) has an Earnings ESP of +10.00% and a Zacks Rank #3.

United Rentals, Inc. (URI - Free Report) has an Earnings ESP of +4.89% and a Zacks Rank #3.

Quanta Services, Inc. (PWR - Free Report) has an Earnings ESP of +10.32% and a Zacks Rank of 2, at present.