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Encore Wire (WIRE) to Report Q3 Earnings: What's in Store?
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Encore Wire Corporation (WIRE - Free Report) is expected to report a year-over-year earnings decline in its third-quarter 2022 results next week.
Q2 Results
Encore Wire’s second-quarter 2022 adjusted earnings surpassed the Zacks Consensus Estimate and increased year over year. WIRE’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, at an average of 195%.
The Zacks Consensus Estimate for third-quarter earnings is pegged at $4.63 per share, suggesting a decline of 45% year over year. The estimate has remained unchanged in the past 30 days.
Key Factors
Encore Wire has been witnessing volume growth for three consecutive quarters, driven by continued increasing demand for data centers, healthcare and renewable product solutions. Robust demand and higher shipment volume for copper and aluminum wire are expected to be reflected in the company’s third-quarter results.
With new capacity coming online this year, the company remains well-positioned to capture incremental market share and volume growth in the current economic environment. Encore Wire’s repurposing of the vacated distribution center to expand manufacturing capacity and extend market reach are likely to have been the catalysts in the quarter. The company’s investments to modernize manufacturing facilities and its focus on operational execution as well as product innovation may have aided growth in the third quarter.
Despite healthy demand for its products, the downtrend in copper and aluminum prices throughout the quarter will likely reflect on the company’s results. On top of this, the company had to contend with higher raw material and input costs as well as supply-chain issues. All of these factors are expected to have affected the company’s margins in the third quarter. WIRE’s cost-reduction actions and pricing actions are likely to have somewhat offset these negatives in the September-ended quarter.
Earnings Whispers
The proven Zacks model does not conclusively predict an earnings beat for Encore Wire 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.
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.
Earnings ESP: The Earnings ESP for Encore Wire is 0.00%.
In the past year, shares of Encore Wire have gained 12% compared with the industry’s decline of 5.8%.
Stocks Poised to Beat Earnings Estimates
Here are some Industrial Products stocks, which according to our model, have the right combination of elements to post an earnings beat in their upcoming releases:
The Timken Company (TKR - Free Report) currently has an Earnings ESP of +2.41% and a Zacks Rank of 2. The Zacks Consensus Estimate for third-quarter 2022 earnings has moved up 2% in the past 60 days to $1.33 per share. The estimate suggests growth of 12.7% from the year-ago reported figure. TKR has a trailing four-quarter earnings surprise of 11.7%, on average.
The Zacks Consensus Estimate for TKR’s quarterly revenues is pegged at $1.09 billion, indicating an increase of 5% from the prior-year quarter’s levels.
Mueller Water Products (MWA - Free Report) currently has an Earnings ESP of +17.65% and a Zacks Rank of 2. The Zacks Consensus Estimate for third-quarter 2022 earnings is currently pegged at 14 cents per share, suggesting 16.7% growth from the year-ago quarter. The estimate has gone up 8% over the past 60 days.
The Zacks Consensus Estimate for quarterly revenues is pinned at $320.7 million, suggesting growth of 8.5% from the prior-year tally. MWA has a trailing four-quarter earnings surprise of 5.17%, on average.
O-I Glass Inc. (OI - Free Report) currently has an Earnings ESP of +2.20% and a Zacks Rank #2. The Zacks Consensus Estimate for third-quarter 2022 earnings has gone up 3% in the past 60 days and is currently pegged at 61 cents per share. The projection indicates 5.2% growth from the year-ago reported figure.
The Zacks Consensus Estimate for OI’s quarterly revenues is pegged at $1.71 billion, which indicates an improvement of 6.27% from the year-ago reported figure. OI has a trailing four-quarter earnings surprise of 17.4%, on average.
Image: Bigstock
Encore Wire (WIRE) to Report Q3 Earnings: What's in Store?
Encore Wire Corporation (WIRE - Free Report) is expected to report a year-over-year earnings decline in its third-quarter 2022 results next week.
Q2 Results
Encore Wire’s second-quarter 2022 adjusted earnings surpassed the Zacks Consensus Estimate and increased year over year. WIRE’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, at an average of 195%.
Encore Wire Corporation Price and EPS Surprise
Encore Wire Corporation price-eps-surprise | Encore Wire Corporation Quote
Q3 Estimates
The Zacks Consensus Estimate for third-quarter earnings is pegged at $4.63 per share, suggesting a decline of 45% year over year. The estimate has remained unchanged in the past 30 days.
Key Factors
Encore Wire has been witnessing volume growth for three consecutive quarters, driven by continued increasing demand for data centers, healthcare and renewable product solutions. Robust demand and higher shipment volume for copper and aluminum wire are expected to be reflected in the company’s third-quarter results.
With new capacity coming online this year, the company remains well-positioned to capture incremental market share and volume growth in the current economic environment. Encore Wire’s repurposing of the vacated distribution center to expand manufacturing capacity and extend market reach are likely to have been the catalysts in the quarter. The company’s investments to modernize manufacturing facilities and its focus on operational execution as well as product innovation may have aided growth in the third quarter.
Despite healthy demand for its products, the downtrend in copper and aluminum prices throughout the quarter will likely reflect on the company’s results. On top of this, the company had to contend with higher raw material and input costs as well as supply-chain issues. All of these factors are expected to have affected the company’s margins in the third quarter. WIRE’s cost-reduction actions and pricing actions are likely to have somewhat offset these negatives in the September-ended quarter.
Earnings Whispers
The proven Zacks model does not conclusively predict an earnings beat for Encore Wire 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.
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.
Earnings ESP: The Earnings ESP for Encore Wire is 0.00%.
Zacks Rank: Encore Wire currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Price Performance
Image Source: Zacks Investment Research
In the past year, shares of Encore Wire have gained 12% compared with the industry’s decline of 5.8%.
Stocks Poised to Beat Earnings Estimates
Here are some Industrial Products stocks, which according to our model, have the right combination of elements to post an earnings beat in their upcoming releases:
The Timken Company (TKR - Free Report) currently has an Earnings ESP of +2.41% and a Zacks Rank of 2. The Zacks Consensus Estimate for third-quarter 2022 earnings has moved up 2% in the past 60 days to $1.33 per share. The estimate suggests growth of 12.7% from the year-ago reported figure. TKR has a trailing four-quarter earnings surprise of 11.7%, on average.
The Zacks Consensus Estimate for TKR’s quarterly revenues is pegged at $1.09 billion, indicating an increase of 5% from the prior-year quarter’s levels.
Mueller Water Products (MWA - Free Report) currently has an Earnings ESP of +17.65% and a Zacks Rank of 2. The Zacks Consensus Estimate for third-quarter 2022 earnings is currently pegged at 14 cents per share, suggesting 16.7% growth from the year-ago quarter. The estimate has gone up 8% over the past 60 days.
The Zacks Consensus Estimate for quarterly revenues is pinned at $320.7 million, suggesting growth of 8.5% from the prior-year tally. MWA has a trailing four-quarter earnings surprise of 5.17%, on average.
O-I Glass Inc. (OI - Free Report) currently has an Earnings ESP of +2.20% and a Zacks Rank #2. The Zacks Consensus Estimate for third-quarter 2022 earnings has gone up 3% in the past 60 days and is currently pegged at 61 cents per share. The projection indicates 5.2% growth from the year-ago reported figure.
The Zacks Consensus Estimate for OI’s quarterly revenues is pegged at $1.71 billion, which indicates an improvement of 6.27% from the year-ago reported figure. OI has a trailing four-quarter earnings surprise of 17.4%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.