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Encore Wire (WIRE) to Post Q1 Earnings: What's in the Cards?
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Encore Wire Corporation (WIRE - Free Report) is scheduled to report first-quarter 2022 results on Apr 28, after market close.
The company delivered an earnings surprise of 298.1%, on average, in the trailing four quarters, beating estimates on all occasions. Encore Wire’s fourth-quarter 2021 adjusted earnings of $6.91 per share surpassed the Zacks Consensus Estimate of $2.42 by 185.54%.
Image Source: Zacks Investment Research
In the past three months, shares of the company have lost 3.3% compared with the industry’s decline of 1.5%.
Key Factors to Note
Encore Wire is anticipated to have benefited from strong demand for electrical building wire across its commercial and industrial end markets in the first quarter. Higher shipment volume for copper and aluminum wire, supported by higher prices, is likely to have augmented the company’s top-line performance.
The company’s investments to modernize manufacturing facilities, along with its focus on operational execution and product innovation, are likely to have been tailwinds in the quarter. Also, its vertically integrated business model, cost-management actions and effective pricing actions are likely to have helped it maintain a healthy margin performance in the first quarter.
Despite healthy demand for its products, supply-chain challenges and disruptions in WIRE’s distribution network might have dragged its performance in the to-be-reported quarter. Raw-material inflation and a skilled labor shortage are expected to have adversely impacted the company’s margins and profitability in the first quarter as well.
Although the company’s investments in manufacturing capacity hold good, the high capital expenditure incurred is likely to have been a spoilsport. Encore Wire expects to incur $150-$170 million in expenses for 2022.
The consensus estimate for the company’s first-quarter earnings is pegged at $2.38, suggesting a decline of 65.6% from the quarter-ago reported number but an increase of 19.6% from the year-ago reported figure.
Earnings Whispers
According to our quantitative model, a stock needs to have the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or at least 3 (Hold) to increase the odds of an earnings beat. But that is not the case here as we will see below. You can see the complete list of today’s Zacks #1 Rank stocks here.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: The company has an Earnings ESP of 0.00% as both the Zacks Consensus Estimate and the Most Accurate Estimate are pegged at $2.38.
Here are some companies you may want to consider from the Zacks Industrial Products sector, as our model shows that these have the right combination of elements to post an earnings beat this season:
Chart Industries, Inc. (GTLS - Free Report) has an Earnings ESP of +9.16% and a Zacks Rank of 3 at present. GTLS delivered a trailing four-quarter earnings surprise of 2.9%, on average.
Earnings estimates of GTLS have increased 2.6% for 2022 in the past 60 days. Its shares have gained 33% in the past three months.
Eaton Corporation plc (ETN - Free Report) has an Earnings ESP of +0.85% and a Zacks Rank of 3, currently. ETN delivered a trailing four-quarter earnings surprise of 7%, on average.
Earnings estimates of ETN have decreased 0.7% for 2022 in the past 60 days. Its shares have declined 7.2% in the past three months.
AGCO Corporation (AGCO - Free Report) has an Earnings ESP of +0.93% and a Zacks Rank of 3, currently. Its earnings surprise in the last four quarters was 56.7%, on average.
In the past 60 days, AGCO’s earnings estimates have decreased 0.7% for 2022. The stock has rallied 15.6% in the past three months.
Image: Bigstock
Encore Wire (WIRE) to Post Q1 Earnings: What's in the Cards?
Encore Wire Corporation (WIRE - Free Report) is scheduled to report first-quarter 2022 results on Apr 28, after market close.
The company delivered an earnings surprise of 298.1%, on average, in the trailing four quarters, beating estimates on all occasions. Encore Wire’s fourth-quarter 2021 adjusted earnings of $6.91 per share surpassed the Zacks Consensus Estimate of $2.42 by 185.54%.
Image Source: Zacks Investment Research
In the past three months, shares of the company have lost 3.3% compared with the industry’s decline of 1.5%.
Key Factors to Note
Encore Wire is anticipated to have benefited from strong demand for electrical building wire across its commercial and industrial end markets in the first quarter. Higher shipment volume for copper and aluminum wire, supported by higher prices, is likely to have augmented the company’s top-line performance.
The company’s investments to modernize manufacturing facilities, along with its focus on operational execution and product innovation, are likely to have been tailwinds in the quarter. Also, its vertically integrated business model, cost-management actions and effective pricing actions are likely to have helped it maintain a healthy margin performance in the first quarter.
Despite healthy demand for its products, supply-chain challenges and disruptions in WIRE’s distribution network might have dragged its performance in the to-be-reported quarter. Raw-material inflation and a skilled labor shortage are expected to have adversely impacted the company’s margins and profitability in the first quarter as well.
Although the company’s investments in manufacturing capacity hold good, the high capital expenditure incurred is likely to have been a spoilsport. Encore Wire expects to incur $150-$170 million in expenses for 2022.
The consensus estimate for the company’s first-quarter earnings is pegged at $2.38, suggesting a decline of 65.6% from the quarter-ago reported number but an increase of 19.6% from the year-ago reported figure.
Earnings Whispers
According to our quantitative model, a stock needs to have the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or at least 3 (Hold) to increase the odds of an earnings beat. But that is not the case here as we will see below. You can see the complete list of today’s Zacks #1 Rank stocks here.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: The company has an Earnings ESP of 0.00% as both the Zacks Consensus Estimate and the Most Accurate Estimate are pegged at $2.38.
Encore Wire Corporation Price and EPS Surprise
Encore Wire Corporation price-eps-surprise | Encore Wire Corporation Quote
Zacks Rank: Encore Wire carries a Zacks Rank #3.
Key Picks
Here are some companies you may want to consider from the Zacks Industrial Products sector, as our model shows that these have the right combination of elements to post an earnings beat this season:
Chart Industries, Inc. (GTLS - Free Report) has an Earnings ESP of +9.16% and a Zacks Rank of 3 at present. GTLS delivered a trailing four-quarter earnings surprise of 2.9%, on average.
Earnings estimates of GTLS have increased 2.6% for 2022 in the past 60 days. Its shares have gained 33% in the past three months.
Eaton Corporation plc (ETN - Free Report) has an Earnings ESP of +0.85% and a Zacks Rank of 3, currently. ETN delivered a trailing four-quarter earnings surprise of 7%, on average.
Earnings estimates of ETN have decreased 0.7% for 2022 in the past 60 days. Its shares have declined 7.2% in the past three months.
AGCO Corporation (AGCO - Free Report) has an Earnings ESP of +0.93% and a Zacks Rank of 3, currently. Its earnings surprise in the last four quarters was 56.7%, on average.
In the past 60 days, AGCO’s earnings estimates have decreased 0.7% for 2022. The stock has rallied 15.6% in the past three months.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.