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Factors Setting the Tone for Comfort Systems' (FIX) Q1 Earnings

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Comfort Systems USA, Inc. (FIX - Free Report) is scheduled to report its first-quarter 2024 results on Apr 25, after market close.

In the last reported quarter, the company’s earnings topped the Zacks Consensus Estimate by 18.6%. On a year-over-year basis, the top and bottom lines grew 21.6% and 65.6%, respectively.

Markedly, its earnings surpassed expectations in each of the last four quarters, the average surprise being 25.5%.

The Trend in Estimate Revision

The Zacks Consensus Estimate for first-quarter 2024 earnings per share is pegged at $2.26, suggesting 49.7% growth from the year-ago reported value of $1.51.

Factors at Play

In the to-be-reported quarter, the performance of Comfort Systems is likely to have benefited from increased activities in new construction and existing building construction along with modular and maintenance businesses. This uptick is likely to have been due to the improvements in the company’s mechanical and electrical businesses. The company’s construction backlog is likely to have benefited by the uptrend as well.

Comfort Systems USA, Inc. Price and EPS Surprise

Comfort Systems USA, Inc. Price and EPS Surprise

Comfort Systems USA, Inc. price-eps-surprise | Comfort Systems USA, Inc. Quote

Furthermore, the company’s focus on strategic investments toward improved profitability and efficient service execution along with accretive buyouts are encouraging.

Meanwhile, the company’s bottom line is likely to have witnessed year-over-year growth in the first quarter thanks to the leverage from increased revenues accompanied with operational excellence and capital allocation strategies.

Going forward, Comfort Systems’ strategic moves toward piloting emerging technologies, engaging in partnerships with industry-leading tech firms and data analytics are likely to spark its growth momentum in the to-be-reported quarter and beyond.

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for Comfort Systems 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: Comfort Systems has an Earnings ESP of 0.00%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Zacks Rank: FIX currently sports a Zacks Rank of 1.

Stocks Poised to Beat Earnings

Here are some companies in the Zacks Construction sector, which have the right combination of elements to post an earnings beat in the quarter to be reported.

Willdan Group, Inc. (WLDN - Free Report) currently has an Earnings ESP of +47.37% and has a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.

WLDN’s earnings topped the Zacks Consensus Estimate in three of the last four quarters and met on the remaining one occasion, the average surprise being 886.3%. Earnings for the to-be-reported quarter are expected to decline 40.6% from last year's quarter’s reported figure.

Dream Finders Homes, Inc. (DFH - Free Report) currently has an Earnings ESP of +7.14% and a Zacks Rank of 1.

DFH’s earnings for the to-be-reported quarter are expected to increase 55.6% from last year's quarter’s reported figure. The company reported better-than-expected earnings in the trailing four quarters, the average surprise being 144.9%.

Louisiana-Pacific Corporation (LPX - Free Report) currently has an Earnings ESP of +3.56% and a Zacks Rank of 1.

LPX’s earnings for the to-be-reported quarter are expected to gain 232.4% from last year's quarter’s reported figure. The company reported better-than-expected earnings in three of the last four quarters and missed on the remaining one occasion, the average surprise being 106.2%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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