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Construction Stock Q4 Earnings on Feb 16: OC, VMC, UFPI & More
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So far this earnings season, the Zacks Construction sector has shown signs of positivity on the back of a resilient residential market, improving manufacturing and infrastructural activities as well as operational efficiencies.
Also, the rising demand for non-residential and infrastructural activities for both private and public project work are expected to have supported growth. Other strengthening factors like warmer temperature, drier weather, prudent cost-saving efforts, a disciplined approach to bidding, project management, strength in funding programs across the states, and higher demand for road repair and maintenance are expected to have benefited the companies’ quarterly performance.
Yet, higher raw material costs owing to supply chain disruptions are likely to have put pressure on margins. Additionally, higher land, labor and transportation costs may have been risks. While inflation may have limited margin upside, companies have been taking pricing actions, which should have helped them somewhat offset such headwinds.
Q4 Expectations
Per the latest Earnings Outlook, construction sector earnings are expected to grow 25.4% year over year for the to-be-reported quarter, indicating 440 basis points (bps) improvement from 21% growth registered in third-quarter 2021. Revenues are projected to increase 15.1% year over year, suggesting an improvement from the 14.1% growth registered in the last reported quarter.
A Handful of Construction Stocks to Watch
A handful of companies from the construction space are likely to release their respective quarterly results on Feb 16. Let’s take a quick glance at how these stocks are poised ahead of their respective earnings release.
According to the Zacks model, 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Owens Corning (OC - Free Report) is slated to report fourth-quarter 2021 results before the opening bell. In the last reported quarter, the company’s earnings and sales beat the Zacks Consensus Estimate by 0.4% and 2.8% and increased 48.2% and 15.8% on a year-over-year basis, respectively. Shares of Owens Corning have gained 7.4% in the past year. Its earnings topped the consensus mark in the trailing four quarters, with the average being 20.7%, as shown in the chart below:
Our proven model does not conclusively predict an earnings beat for Owens Corning this time around, as it has an Earnings ESP of 0.00% and a Zacks Rank #3. You can seethe complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for the to-be-reported quarter’s earnings has remained stable at $1.90 per share over the past 60 days. The estimated figure indicates no change from the prior-year quarter. Also, the consensus mark for revenues is $2.01 billion, suggesting 4.6% year-over-year growth.
Owens Corning has been benefiting from inorganic drive, strong volumes and price realization as well as high manufacturing efficiencies across businesses. The robust U.S. residential housing market and stronger commercial as well as industrial markets are adding to the bliss. Improved manufacturing leverage and strong cost controls have been aiding it in delivering solid margins. (Read more: What to Expect From Owens Corning This Earnings Season)
Vulcan Materials Company (VMC - Free Report) is slated to report fourth-quarter 2021 results before the opening bell. In the last reported quarter, the company’s adjusted earnings missed the Zacks Consensus Estimate by 6.7% but revenues beat the same by 4.1%. On a year-over-year basis, earnings declined 1.3% but revenues increased 15.8%. Vulcan Materials’ shares have gained 13.2% in the past year. Its earnings topped the consensus mark in two of the trailing four quarters, with the average surprise being 15.9%, as shown in the chart below:
The chances of VMC delivering an earnings beat are low this time around as it has an Earnings ESP of -4.12% and a Zacks Rank #3.
The Zacks Consensus Estimate for Vulcan Materials’ fourth-quarter earnings is pegged at $1.18 per share, implying a rise of 10.3% from the year-ago reported figure of $1.07. Earnings estimates for the said period have moved 0.8% south in the past seven days. The consensus estimate for net sales stands at $1.58 billion, indicating a 34.6% increase from the prior-year period.
Vulcan Materials remains focused on improving 2021 unit profitability in aggregates. The U.S. government’s focus on spurring massive infrastructure investments in roads, highways, ports and airports bodes well. (Read more: What to Expect FromVulcan Materials This Earnings Season)
UFP Industries, Inc. (UFPI - Free Report) is slated to report fourth-quarter 2021 results after market close. For the third quarter, earnings and revenues surpassed the Zacks Consensus Estimate by 24.5% and 15.5%, respectively. On a year-over-year basis, revenues grew 40.9% and earnings jumped a whopping 54.4% on the back of diversity of markets and an improved pricing model that quickly adjusts to lumber market fluctuations. UFPI’s shares have gained 24.8% in the past year. Its earnings topped the consensus mark in the trailing four quarters, with the average being 44.5%, as shown in the chart below:
Our proven model does not conclusively predict an earnings beat for UFPI as it has an Earnings ESP of 0.00% and a Zacks Rank #3.
For the quarter to be reported, the Zacks Consensus Estimate for earnings of $1.25 per share indicates a 22.6% improvement from the year-ago figure of $1.02. The Zacks Consensus Estimate for revenues is pegged at $1.92 billion, suggesting 38.1% year-over-year growth.
UFP Industries has been benefiting from a solid U.S. residential market, diversity of markets and an improved pricing model. Further, its industrial and construction segments have been experiencing favorable growth trends and profitability, given normalized retail demand and lumber prices.
Great Lakes Dredge & Dock Corporation (GLDD - Free Report) is slated to report fourth-quarter 2021 results before the opening bell. In the last reported quarter, the company’s earnings and revenues missed the respective Zacks Consensus Estimate by 27.6% and 13.5%. On a year-over-year basis, earnings improved 10.5% but revenues decreased 4.1%. GLDD’s shares have declined 11.3% in the past year. Its earnings missed the consensus mark in the trailing four quarters, with the average negative surprise being 39.2%, as shown in the chart below:
Great Lakes Dredge & Dock Corporation Price and EPS Surprise
Our proven model does not conclusively predict an earnings beat for GLDD as it has an Earnings ESP of 0.00% and a Zacks Rank #3.
For the quarter to be reported, the Zacks Consensus Estimate for earnings of 31 cents per share indicates a 93.8% improvement from the year-ago figure of 16. The Zacks Consensus Estimate for revenues is pegged at $225 million, suggesting 30.7% year-over-year growth.
Great Lakes is the largest provider of dredging services in the United States. The company mainly banks on strong domestic dredging operations, high equipment utilization, solid project execution and savings from restructuring.
North American Construction Group Ltd. (NOA - Free Report) is slated to report fourth-quarter 2021 results after market close. For the third quarter, revenues grew 77.4% and earnings jumped a whopping 92.3% on the back of improved operating conditions, higher demand for heavy equipment fleet and the Nuna Group of Companies acquisition. NOA’s shares have gained 52.6% in the past year. Its earnings topped the consensus mark in three of the trailing four quarters, with the average being 8.5%, as shown in the chart below:
North American Construction Group Ltd. Price and EPS Surprise
Our proven model does not conclusively predict an earnings beat for NOA as it has an Earnings ESP of 0.00% and a Zacks Rank #5 (Strong Sell).
For the quarter to be reported, the Zacks Consensus Estimate for earnings of 45 cents per share indicates a 60.7% improvement from the year-ago figure of 28 cents. The Zacks Consensus Estimate for revenues is pegged at $146.5 million, suggesting 39.6% year-over-year growth.
Continued indigenous partnership growth, expanding internal and external maintenance capabilities, progress on sustainability plans, increasing market diversification, steady growth, and record backlog goals have been driving North American Construction’s performance. Also, a record free cash flow projection, low senior leverage ratio and increased overall opportunities with line-of-sight to achieve or exceed strategic goals are adding to the bliss.
Image: Bigstock
Construction Stock Q4 Earnings on Feb 16: OC, VMC, UFPI & More
So far this earnings season, the Zacks Construction sector has shown signs of positivity on the back of a resilient residential market, improving manufacturing and infrastructural activities as well as operational efficiencies.
Also, the rising demand for non-residential and infrastructural activities for both private and public project work are expected to have supported growth. Other strengthening factors like warmer temperature, drier weather, prudent cost-saving efforts, a disciplined approach to bidding, project management, strength in funding programs across the states, and higher demand for road repair and maintenance are expected to have benefited the companies’ quarterly performance.
Yet, higher raw material costs owing to supply chain disruptions are likely to have put pressure on margins. Additionally, higher land, labor and transportation costs may have been risks. While inflation may have limited margin upside, companies have been taking pricing actions, which should have helped them somewhat offset such headwinds.
Q4 Expectations
Per the latest Earnings Outlook, construction sector earnings are expected to grow 25.4% year over year for the to-be-reported quarter, indicating 440 basis points (bps) improvement from 21% growth registered in third-quarter 2021. Revenues are projected to increase 15.1% year over year, suggesting an improvement from the 14.1% growth registered in the last reported quarter.
A Handful of Construction Stocks to Watch
A handful of companies from the construction space are likely to release their respective quarterly results on Feb 16. Let’s take a quick glance at how these stocks are poised ahead of their respective earnings release.
According to the Zacks model, 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Owens Corning (OC - Free Report) is slated to report fourth-quarter 2021 results before the opening bell. In the last reported quarter, the company’s earnings and sales beat the Zacks Consensus Estimate by 0.4% and 2.8% and increased 48.2% and 15.8% on a year-over-year basis, respectively. Shares of Owens Corning have gained 7.4% in the past year. Its earnings topped the consensus mark in the trailing four quarters, with the average being 20.7%, as shown in the chart below:
Owens Corning Inc Price and EPS Surprise
Owens Corning Inc price-eps-surprise | Owens Corning Inc Quote
Our proven model does not conclusively predict an earnings beat for Owens Corning this time around, as it has an Earnings ESP of 0.00% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for the to-be-reported quarter’s earnings has remained stable at $1.90 per share over the past 60 days. The estimated figure indicates no change from the prior-year quarter. Also, the consensus mark for revenues is $2.01 billion, suggesting 4.6% year-over-year growth.
Owens Corning has been benefiting from inorganic drive, strong volumes and price realization as well as high manufacturing efficiencies across businesses. The robust U.S. residential housing market and stronger commercial as well as industrial markets are adding to the bliss. Improved manufacturing leverage and strong cost controls have been aiding it in delivering solid margins. (Read more: What to Expect From Owens Corning This Earnings Season)
Vulcan Materials Company (VMC - Free Report) is slated to report fourth-quarter 2021 results before the opening bell. In the last reported quarter, the company’s adjusted earnings missed the Zacks Consensus Estimate by 6.7% but revenues beat the same by 4.1%. On a year-over-year basis, earnings declined 1.3% but revenues increased 15.8%. Vulcan Materials’ shares have gained 13.2% in the past year. Its earnings topped the consensus mark in two of the trailing four quarters, with the average surprise being 15.9%, as shown in the chart below:
Vulcan Materials Company Price and EPS Surprise
Vulcan Materials Company price-eps-surprise | Vulcan Materials Company Quote
The chances of VMC delivering an earnings beat are low this time around as it has an Earnings ESP of -4.12% and a Zacks Rank #3.
The Zacks Consensus Estimate for Vulcan Materials’ fourth-quarter earnings is pegged at $1.18 per share, implying a rise of 10.3% from the year-ago reported figure of $1.07. Earnings estimates for the said period have moved 0.8% south in the past seven days. The consensus estimate for net sales stands at $1.58 billion, indicating a 34.6% increase from the prior-year period.
Vulcan Materials remains focused on improving 2021 unit profitability in aggregates. The U.S. government’s focus on spurring massive infrastructure investments in roads, highways, ports and airports bodes well. (Read more: What to Expect FromVulcan Materials This Earnings Season)
UFP Industries, Inc. (UFPI - Free Report) is slated to report fourth-quarter 2021 results after market close. For the third quarter, earnings and revenues surpassed the Zacks Consensus Estimate by 24.5% and 15.5%, respectively. On a year-over-year basis, revenues grew 40.9% and earnings jumped a whopping 54.4% on the back of diversity of markets and an improved pricing model that quickly adjusts to lumber market fluctuations. UFPI’s shares have gained 24.8% in the past year. Its earnings topped the consensus mark in the trailing four quarters, with the average being 44.5%, as shown in the chart below:
UFP Industries, Inc. Price and EPS Surprise
UFP Industries, Inc. price-eps-surprise | UFP Industries, Inc. Quote
Our proven model does not conclusively predict an earnings beat for UFPI as it has an Earnings ESP of 0.00% and a Zacks Rank #3.
For the quarter to be reported, the Zacks Consensus Estimate for earnings of $1.25 per share indicates a 22.6% improvement from the year-ago figure of $1.02. The Zacks Consensus Estimate for revenues is pegged at $1.92 billion, suggesting 38.1% year-over-year growth.
UFP Industries has been benefiting from a solid U.S. residential market, diversity of markets and an improved pricing model. Further, its industrial and construction segments have been experiencing favorable growth trends and profitability, given normalized retail demand and lumber prices.
Great Lakes Dredge & Dock Corporation (GLDD - Free Report) is slated to report fourth-quarter 2021 results before the opening bell. In the last reported quarter, the company’s earnings and revenues missed the respective Zacks Consensus Estimate by 27.6% and 13.5%. On a year-over-year basis, earnings improved 10.5% but revenues decreased 4.1%. GLDD’s shares have declined 11.3% in the past year. Its earnings missed the consensus mark in the trailing four quarters, with the average negative surprise being 39.2%, as shown in the chart below:
Great Lakes Dredge & Dock Corporation Price and EPS Surprise
Great Lakes Dredge & Dock Corporation price-eps-surprise | Great Lakes Dredge & Dock Corporation Quote
Our proven model does not conclusively predict an earnings beat for GLDD as it has an Earnings ESP of 0.00% and a Zacks Rank #3.
For the quarter to be reported, the Zacks Consensus Estimate for earnings of 31 cents per share indicates a 93.8% improvement from the year-ago figure of 16. The Zacks Consensus Estimate for revenues is pegged at $225 million, suggesting 30.7% year-over-year growth.
Great Lakes is the largest provider of dredging services in the United States. The company mainly banks on strong domestic dredging operations, high equipment utilization, solid project execution and savings from restructuring.
North American Construction Group Ltd. (NOA - Free Report) is slated to report fourth-quarter 2021 results after market close. For the third quarter, revenues grew 77.4% and earnings jumped a whopping 92.3% on the back of improved operating conditions, higher demand for heavy equipment fleet and the Nuna Group of Companies acquisition. NOA’s shares have gained 52.6% in the past year. Its earnings topped the consensus mark in three of the trailing four quarters, with the average being 8.5%, as shown in the chart below:
North American Construction Group Ltd. Price and EPS Surprise
North American Construction Group Ltd. price-eps-surprise | North American Construction Group Ltd. Quote
Our proven model does not conclusively predict an earnings beat for NOA as it has an Earnings ESP of 0.00% and a Zacks Rank #5 (Strong Sell).
For the quarter to be reported, the Zacks Consensus Estimate for earnings of 45 cents per share indicates a 60.7% improvement from the year-ago figure of 28 cents. The Zacks Consensus Estimate for revenues is pegged at $146.5 million, suggesting 39.6% year-over-year growth.
Continued indigenous partnership growth, expanding internal and external maintenance capabilities, progress on sustainability plans, increasing market diversification, steady growth, and record backlog goals have been driving North American Construction’s performance. Also, a record free cash flow projection, low senior leverage ratio and increased overall opportunities with line-of-sight to achieve or exceed strategic goals are adding to the bliss.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.