We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
North American Construction (NOA) Wins Regional Services Deal
Read MoreHide Full Article
North American Construction Group Ltd. (NOA - Free Report) or NACG’s Mikisew North American Limited Partnership (“MNALP”), has received a three-year regional services contract from a major producer in the Canada oil sand region. The contract includes the provision of services across various mine sites operated by the producer.
The first year of the agreed earthworks volumes will provide NACG with $225 million in contractual backlog. Management expects further commitments, the backlog of which ranges between $25 million and $50 million, to be achieved prior to the end of February 2024.
On a proforma basis, NOA’s combined backlog was $2.8 billion as of Sep 30, 2023. Including the above-mentioned expected benefits, its combined backlog is now projected to be more than $3 billion.
MNALP is a limited partnership between NACG and the Mikisew Group of Companies. Meanwhile, the contract is effective immediately, with an expiration date of Jan 30, 2027.
Share Price Performance
Shares of this heavy equipment and mining contractor have gained 50.4% in the past year, outperforming the Zacks Building Products - Heavy Construction industry’s 12.2% growth.
Image Source: Zacks Investment Research
NACG provides equipment maintenance and mining and heavy construction services to the resource development and industrial construction markets in Canada, the U.S. and Australia. Its range of services includes constructability reviews, budgetary cost estimates, design-build construction, project management, contract mining and equipment maintenance.
NOA’s 2024 earnings estimate moved up to $3.22 per share from $3.19 in the past 60 days, indicating 51.7% year over year growth. It has a VGM Score of B.
In October 2023, NACG acquired MacKellar Group for a total expected consideration of $395 million. These strategic moves are likely to benefit the company in the future as well.
PulteGroup Inc. (PHM - Free Report) reported mixed results in fourth-quarter 2023, wherein earnings surpassed the Zacks Consensus Estimates, but revenues missed the same. Both metrics decreased year over year.
Nonetheless, during the latter part of the fourth quarter, PulteGroup observed a notable surge in buyer activity, mainly attributed to declining interest rates. December emerged as the quarter's peak sales month. With the anticipation of sustained lower interest rates in 2024, the company remains optimistic that the enhanced affordability landscape will continue to attract prospective buyers.
NVR, Inc. (NVR - Free Report) reported mixed fourth-quarter 2023 results, with earnings surpassing the Zacks Consensus Estimate and Homebuilding revenues missing the same. Both the top and bottom lines decreased on a year-over-year basis due to softened housing demand, given higher mortgage rates during the period.
The company reported earnings of $121.56 per share, which topped the consensus mark of $118.63 by 2.9%. The reported figure decreased 9% from the prior-year quarter’s figure of $133.44 per share. Total revenues (Homebuilding & Mortgage Banking fees combined) amounted to $2.43 billion for the reported quarter, indicating a decline of 10% on a year-over-year basis.
M.D.C. Holdings, Inc. reported better-than-expected results for fourth-quarter 2023. Its earnings topped the Zacks Consensus Estimate and increased year over year. Revenues surpassed the consensus estimate but declined year over year.
MDC’s uptrend can be attributed to the current new home market, which continues to benefit from the lack of existing home supply. The company witnessed notable improvements in its net new orders. This was driven by a significant decline in cancellations and its use of financing incentives aimed at reducing the negative impact of higher mortgage rates for its buyers.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
North American Construction (NOA) Wins Regional Services Deal
North American Construction Group Ltd. (NOA - Free Report) or NACG’s Mikisew North American Limited Partnership (“MNALP”), has received a three-year regional services contract from a major producer in the Canada oil sand region. The contract includes the provision of services across various mine sites operated by the producer.
The first year of the agreed earthworks volumes will provide NACG with $225 million in contractual backlog. Management expects further commitments, the backlog of which ranges between $25 million and $50 million, to be achieved prior to the end of February 2024.
On a proforma basis, NOA’s combined backlog was $2.8 billion as of Sep 30, 2023. Including the above-mentioned expected benefits, its combined backlog is now projected to be more than $3 billion.
MNALP is a limited partnership between NACG and the Mikisew Group of Companies. Meanwhile, the contract is effective immediately, with an expiration date of Jan 30, 2027.
Share Price Performance
Shares of this heavy equipment and mining contractor have gained 50.4% in the past year, outperforming the Zacks Building Products - Heavy Construction industry’s 12.2% growth.
Image Source: Zacks Investment Research
NACG provides equipment maintenance and mining and heavy construction services to the resource development and industrial construction markets in Canada, the U.S. and Australia. Its range of services includes constructability reviews, budgetary cost estimates, design-build construction, project management, contract mining and equipment maintenance.
NOA’s 2024 earnings estimate moved up to $3.22 per share from $3.19 in the past 60 days, indicating 51.7% year over year growth. It has a VGM Score of B.
In October 2023, NACG acquired MacKellar Group for a total expected consideration of $395 million. These strategic moves are likely to benefit the company in the future as well.
Zacks Rank & Recent Construction Releases
NACG currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
PulteGroup Inc. (PHM - Free Report) reported mixed results in fourth-quarter 2023, wherein earnings surpassed the Zacks Consensus Estimates, but revenues missed the same. Both metrics decreased year over year.
Nonetheless, during the latter part of the fourth quarter, PulteGroup observed a notable surge in buyer activity, mainly attributed to declining interest rates. December emerged as the quarter's peak sales month. With the anticipation of sustained lower interest rates in 2024, the company remains optimistic that the enhanced affordability landscape will continue to attract prospective buyers.
NVR, Inc. (NVR - Free Report) reported mixed fourth-quarter 2023 results, with earnings surpassing the Zacks Consensus Estimate and Homebuilding revenues missing the same. Both the top and bottom lines decreased on a year-over-year basis due to softened housing demand, given higher mortgage rates during the period.
The company reported earnings of $121.56 per share, which topped the consensus mark of $118.63 by 2.9%. The reported figure decreased 9% from the prior-year quarter’s figure of $133.44 per share. Total revenues (Homebuilding & Mortgage Banking fees combined) amounted to $2.43 billion for the reported quarter, indicating a decline of 10% on a year-over-year basis.
M.D.C. Holdings, Inc. reported better-than-expected results for fourth-quarter 2023. Its earnings topped the Zacks Consensus Estimate and increased year over year. Revenues surpassed the consensus estimate but declined year over year.
MDC’s uptrend can be attributed to the current new home market, which continues to benefit from the lack of existing home supply. The company witnessed notable improvements in its net new orders. This was driven by a significant decline in cancellations and its use of financing incentives aimed at reducing the negative impact of higher mortgage rates for its buyers.