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Tecnoglass (TGLS) to Report Q4 Earnings: What's in Store?

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Tecnoglass, Inc. (TGLS - Free Report) is scheduled to report fourth-quarter 2021 results on Mar 3, before the opening bell.

In the last reported quarter, the company’s earnings and revenues beat the Zacks Consensus Estimate by 32.4% and 10.9%, respectively. On a year-over-year basis, earnings and revenues of this manufacturer of architectural glass, windows, and associated aluminum products increased 60.7% and 26.2%, respectively.

Tecnoglass’ earnings topped the consensus mark in all the last four quarters, with the average being 34.5%.

Trend in Estimate Revision

The Zacks Consensus Estimate for fourth-quarter earnings has been unchanged at 38 cents per share over the past 30 days. The estimated figure suggests a 72.7% increase from 22 cents per share reported in the year-ago period. The consensus mark for revenues is pegged at $128.9 million, which calls for 26% growth from the prior-year reported figure.

Tecnoglass Inc. Price and EPS Surprise

Tecnoglass Inc. Price and EPS Surprise

Tecnoglass Inc. price-eps-surprise | Tecnoglass Inc. Quote

Factors to Note

Tecnoglass’ fourth-quarter results are expected to gain from single-family residential activities and a wide array of commercial projects. Precisely, revenues from the United States, accounting for 94.5% of total revenues, has been benefiting from robust demand for the company’s products and services in the United States, given solid momentum in the U.S. single-family residential business, market share gains as well as attractive commercial and multifamily projects. Yet, Latin America revenues (a majority of which is represented by long-term contracts priced in Colombian Pesos but indexed to the U.S. Dollar) have been witnessing the adverse impact of changes in foreign currency exchange rates on Colombia and total revenues.

Prestige and Elite product lines are likely to have been key growth drivers for the single-family business. The company’s Multimax product line is also expected to have contributed to fourth-quarter sales. Tecnoglass has been making efforts to expand the single-family business via dealership expansion and geographic diversification, particularly in the high-growth Southeast U.S. region, the Gulf Coast and Texas.

The Zacks Consensus Estimate for the U.S. segment revenues is pegged at $120 million, implying 36.4% growth from a year ago.

The consensus estimate for Columbia revenues is currently pegged at $5 million. This suggests a decline from $9.4 million a year ago.

The consensus estimate for Other revenues is currently pegged at $3 million. This suggests a decline from $5.2 million a year ago.

Meanwhile, Tecnoglass has been reeling under industry-wide supply headwinds. The company has also been facing elevated costs as a result of automation efforts to meet product demand. A rise in variable costs related to marine and ground transportation and commissions is also expected to have been a concern.

What the Zacks Model Predicts

Our proven model does not conclusively predict an earnings beat for Tecnoglass this season. 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Tecnoglass currently has a Zacks Rank #3 and an Earnings ESP of 0.00%. You can see the complete list of today’s Zacks #1 Rank stocks here.

Peer Releases

Builders FirstSource, Inc. (BLDR - Free Report) , a Zacks Rank #1 stock, reported solid results for fourth-quarter 2021, wherein earnings and net sales surpassed the Zacks Consensus Estimate as well as increased significantly year over year. The results were driven by an increase in net sales and gross margin amid continuous raw material supply woes.

For 2022, BLDR remains optimistic about its financial performance as it expects strong demand in single-family housing and across the portfolio of value-added products and solutions.

Fastenal Company (FAST - Free Report) — which currently carries a Zacks Rank #2 — ended 2021 on a solid note.

Fastenal’s earnings and revenues not only beat the Zacks Consensus Estimate but also improved on a year-over-year basis, given strong demand for manufacturing and construction equipment and supplies along with higher pricing.

Lowe’s Companies, Inc. (LOW - Free Report) , a Zacks Rank #2 stock, delivered splendid fourth-quarter fiscal 2021 results, as both the top and the bottom lines grew year over year and surpassed the Zacks Consensus Estimate. LOW delivered the 11th straight earnings beat and the eighth consecutive sales surprise.

Lowe’s delivered a robust performance in 2021, which benefited from the solid execution of the Total Home strategy. The strategy helped LOW gain a market share across Pro and DIY customers last year. Focus on driving productivity and efficient pricing drove operating margin growth of 170 basis points in 2021.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.