We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
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.
Mayville (MEC) to Report Q4 Earnings: Here's What to Expect
Read MoreHide Full Article
Mayville Engineering Company, Inc. (MEC - Free Report) is scheduled to report its fourth-quarter 2023 results on Mar 5, after market close.
In the last reported quarter, earnings topped the Zacks Consensus Estimate by 10.5%, while the net sales missed the same by 0.8%. Moreover, on a year-over-year basis, the top line grew, but the bottom line declined.
MEC’s earnings surpassed expectations in three out of the trailing four quarters and met on the remaining one occasion, the average surprise being 11.4%.
How Are Estimates Placed?
The Zacks Consensus Estimate for fourth-quarter 2023 earnings per share has remained unchanged at 14 cents over the past 60 days. The current estimate suggests a decline of 36.4% from the year-ago quarter’s reported value of earnings of 22 cents per share.
Mayville Engineering Company, Inc. Price and EPS Surprise
The consensus mark for net sales is pegged at $157.1 million, suggesting growth of 22.2% from the year-ago reported figure of $128.5 million.
Key Factors to Consider
Mayville’s net sales for the to-be-reported quarter are expected to have increased year over year on the back of improved customer interests and order activity. This uptrend is likely to have been reflected by increased volumes in commercial vehicle, military, powersports and agriculture (to a lesser extent) end markets. Also, the completion of the Mid-States Aluminum acquisition in the prior quarter is likely to have aided the company's top-line growth in the fourth quarter.
However, soft contributions from the construction end market and macroeconomic slowdown have been concerning. The company expects that the United Auto Workers strike with one of its customers is likely to have negatively impacted volume growth in the fourth quarter of 2023 to some extent. This trend is likely to continue until a mutual agreement is reached. Nonetheless, the aforementioned tailwinds and volume growth prospects across the end markets are most likely to have more than offset these headwinds.
Meanwhile, the bottom line of the company is expected to have declined year over year due to unabsorbed fixed costs, increased interest and labor expenses, along with an increase in selling, general and administrative costs. That said, the company expects the continuous execution of the MBX initiatives is likely to have partially supported margin expansion and working capital efficiency in the fourth quarter of 2023. The MBX initiatives include sustained volume growth, value-based pricing, improved asset optimization and process improvements.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Mayville this time around. The company does not have the right combination of two key ingredients — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — to increase the odds of an earnings beat.
Earnings ESP: Mayville has an Earnings ESP of 0.00%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: MEC currently carries a Zacks Rank of 3.
Key Picks
Here are some better-ranked stocks from the Construction sector.
NVR delivered a trailing four-quarter earnings surprise of 8.1%, on average. The stock has gained 20.3% in the past three months. The Zacks Consensus Estimate for NVR’s 2024 sales and earnings per share (EPS) indicates growth of 7.7% and 4.6%, respectively, from the prior-year levels.
Summit Materials, Inc. (SUM - Free Report) currently sports a Zacks Rank of 1. SUM delivered a trailing four-quarter earnings surprise of 18.2%, on average. The stock has gained 21.5% in the past three months.
The Zacks Consensus Estimate for SUM’s 2024 sales and EPS indicates growth of 80.2% and 53.2%, respectively, from a year ago.
Century Communities, Inc. (CCS - Free Report) presently sports a Zacks Rank of 1. It has a trailing four-quarter earnings surprise of 49.2%, on average. Shares of CCS have gained 15.3% in the past three months.
The Zacks Consensus Estimate for CCS’ 2024 sales and EPS indicates a rise of 11.1% and 24.4%, respectively, from the prior-year levels.
Image: Bigstock
Mayville (MEC) to Report Q4 Earnings: Here's What to Expect
Mayville Engineering Company, Inc. (MEC - Free Report) is scheduled to report its fourth-quarter 2023 results on Mar 5, after market close.
In the last reported quarter, earnings topped the Zacks Consensus Estimate by 10.5%, while the net sales missed the same by 0.8%. Moreover, on a year-over-year basis, the top line grew, but the bottom line declined.
MEC’s earnings surpassed expectations in three out of the trailing four quarters and met on the remaining one occasion, the average surprise being 11.4%.
How Are Estimates Placed?
The Zacks Consensus Estimate for fourth-quarter 2023 earnings per share has remained unchanged at 14 cents over the past 60 days. The current estimate suggests a decline of 36.4% from the year-ago quarter’s reported value of earnings of 22 cents per share.
Mayville Engineering Company, Inc. Price and EPS Surprise
Mayville Engineering Company, Inc. price-eps-surprise | Mayville Engineering Company, Inc. Quote
The consensus mark for net sales is pegged at $157.1 million, suggesting growth of 22.2% from the year-ago reported figure of $128.5 million.
Key Factors to Consider
Mayville’s net sales for the to-be-reported quarter are expected to have increased year over year on the back of improved customer interests and order activity. This uptrend is likely to have been reflected by increased volumes in commercial vehicle, military, powersports and agriculture (to a lesser extent) end markets. Also, the completion of the Mid-States Aluminum acquisition in the prior quarter is likely to have aided the company's top-line growth in the fourth quarter.
However, soft contributions from the construction end market and macroeconomic slowdown have been concerning. The company expects that the United Auto Workers strike with one of its customers is likely to have negatively impacted volume growth in the fourth quarter of 2023 to some extent. This trend is likely to continue until a mutual agreement is reached. Nonetheless, the aforementioned tailwinds and volume growth prospects across the end markets are most likely to have more than offset these headwinds.
Meanwhile, the bottom line of the company is expected to have declined year over year due to unabsorbed fixed costs, increased interest and labor expenses, along with an increase in selling, general and administrative costs. That said, the company expects the continuous execution of the MBX initiatives is likely to have partially supported margin expansion and working capital efficiency in the fourth quarter of 2023. The MBX initiatives include sustained volume growth, value-based pricing, improved asset optimization and process improvements.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Mayville this time around. The company does not have the right combination of two key ingredients — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — to increase the odds of an earnings beat.
Earnings ESP: Mayville has an Earnings ESP of 0.00%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: MEC currently carries a Zacks Rank of 3.
Key Picks
Here are some better-ranked stocks from the Construction sector.
NVR, Inc. (NVR - Free Report) currently sports a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
NVR delivered a trailing four-quarter earnings surprise of 8.1%, on average. The stock has gained 20.3% in the past three months. The Zacks Consensus Estimate for NVR’s 2024 sales and earnings per share (EPS) indicates growth of 7.7% and 4.6%, respectively, from the prior-year levels.
Summit Materials, Inc. (SUM - Free Report) currently sports a Zacks Rank of 1. SUM delivered a trailing four-quarter earnings surprise of 18.2%, on average. The stock has gained 21.5% in the past three months.
The Zacks Consensus Estimate for SUM’s 2024 sales and EPS indicates growth of 80.2% and 53.2%, respectively, from a year ago.
Century Communities, Inc. (CCS - Free Report) presently sports a Zacks Rank of 1. It has a trailing four-quarter earnings surprise of 49.2%, on average. Shares of CCS have gained 15.3% in the past three months.
The Zacks Consensus Estimate for CCS’ 2024 sales and EPS indicates a rise of 11.1% and 24.4%, respectively, from the prior-year levels.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.