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The company has a trailing four-quarter earnings surprise of roughly 14%, on average. It posted a negative earnings surprise of 9.8% in the last reported quarter. The company’s first-quarter results are likely to reflect healthy demand from construction and industrial sectors and higher steel prices.
Shares of Gerdau have declined 9.9% in the past year compared with 3.7% rise of the industry.
Image Source: Zacks Investment Research
Let’s see how things are shaping up for this announcement.
Some Factors at Play
Gerdau is likely to have benefited, in the first quarter, from strong demand for steel in its key operations. A recovery in major consumer sectors across its operations is likely to have supported its steel shipments in the March quarter.
The strong performance of the construction industry in Brazil and the United States along with higher global steel prices are also likely to have driven the company’s margins in the quarter to be reported. It is likely to have witnessed higher production and shipments in its Brazil and North America business divisions on higher demand from the construction and industrial sectors. A rebound in light vehicle production in Brazil and the United States, healthy performance of the heavy vehicle sector in Brazil and the demand recovery in the oil and gas industry are also expected to have supported volumes in its Special Steel division in the first quarter. However, higher costs of key raw materials are likely to have weighed on its performance.
Our proven model does not conclusively predict an earnings beat for Gerdau this season. 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. But that’s not the case here.
Earnings ESP: Earnings ESP for Gerdau is 0.00%. The Zacks Consensus Estimate for earnings for the first quarter is currently pegged at 45 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Gerdau currently carries a Zacks Rank #2.
Stocks That Warrant a Look
Here are some companies in the basic materials space you may want to consider as our model shows these have the right combination of elements to post an earnings beat this quarter:
The Zacks Consensus Estimate for Allegheny’s first-quarter earnings has been revised 4.8% upward over the past 60 days. The Zacks Consensus Estimate for ATI’s earnings for the quarter is currently pegged at 22 cents.
Sociedad Quimica y Minera de Chile S.A. (SQM - Free Report) , slated to release earnings on May 18, has an Earnings ESP of 29.73% and carries a Zacks Rank #1.
The consensus estimate for Sociedad Quimica’s first-quarter earnings has been revised 55.7% upward in the past 60 days. The Zacks Consensus Estimate for SQM’s earnings for the quarter is pegged at $1.23.
Endeavour Silver Corp. (EXK - Free Report) , scheduled to release earnings on May 11, has an Earnings ESP of 4.35% and carries a Zacks Rank #3.
The consensus estimate for Endeavour Silver’s first-quarter earnings has been revised 20% upward in the past 60 days. The Zacks Consensus Estimate for EXK’s earnings for the quarter is pegged at 6 cents.
Image: Bigstock
Gerdau (GGB) to Post Q1 Earnings: What's in the Cards?
Gerdau S.A. (GGB - Free Report) is slated to release first-quarter 2022 results on May 5.
The company has a trailing four-quarter earnings surprise of roughly 14%, on average. It posted a negative earnings surprise of 9.8% in the last reported quarter. The company’s first-quarter results are likely to reflect healthy demand from construction and industrial sectors and higher steel prices.
Shares of Gerdau have declined 9.9% in the past year compared with 3.7% rise of the industry.
Image Source: Zacks Investment Research
Let’s see how things are shaping up for this announcement.
Some Factors at Play
Gerdau is likely to have benefited, in the first quarter, from strong demand for steel in its key operations. A recovery in major consumer sectors across its operations is likely to have supported its steel shipments in the March quarter.
The strong performance of the construction industry in Brazil and the United States along with higher global steel prices are also likely to have driven the company’s margins in the quarter to be reported. It is likely to have witnessed higher production and shipments in its Brazil and North America business divisions on higher demand from the construction and industrial sectors. A rebound in light vehicle production in Brazil and the United States, healthy performance of the heavy vehicle sector in Brazil and the demand recovery in the oil and gas industry are also expected to have supported volumes in its Special Steel division in the first quarter. However, higher costs of key raw materials are likely to have weighed on its performance.
Gerdau S.A. Price and EPS Surprise
Gerdau S.A. price-eps-surprise | Gerdau S.A. Quote
Zacks Model
Our proven model does not conclusively predict an earnings beat for Gerdau this season. 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. But that’s not the case here.
Earnings ESP: Earnings ESP for Gerdau is 0.00%. The Zacks Consensus Estimate for earnings for the first quarter is currently pegged at 45 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Gerdau currently carries a Zacks Rank #2.
Stocks That Warrant a Look
Here are some companies in the basic materials space you may want to consider as our model shows these have the right combination of elements to post an earnings beat this quarter:
Allegheny Technologies Incorporated (ATI - Free Report) , scheduled to release earnings on May 4, has an Earnings ESP of +4.55% and carries a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Allegheny’s first-quarter earnings has been revised 4.8% upward over the past 60 days. The Zacks Consensus Estimate for ATI’s earnings for the quarter is currently pegged at 22 cents.
Sociedad Quimica y Minera de Chile S.A. (SQM - Free Report) , slated to release earnings on May 18, has an Earnings ESP of 29.73% and carries a Zacks Rank #1.
The consensus estimate for Sociedad Quimica’s first-quarter earnings has been revised 55.7% upward in the past 60 days. The Zacks Consensus Estimate for SQM’s earnings for the quarter is pegged at $1.23.
Endeavour Silver Corp. (EXK - Free Report) , scheduled to release earnings on May 11, has an Earnings ESP of 4.35% and carries a Zacks Rank #3.
The consensus estimate for Endeavour Silver’s first-quarter earnings has been revised 20% upward in the past 60 days. The Zacks Consensus Estimate for EXK’s earnings for the quarter is pegged at 6 cents.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.