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.
Building Product Stocks Earnings on Aug 4: LPX, BLD, USCR
Read MoreHide Full Article
The construction sector seems to have recovered on the back of strong housing fundamentals. Of the construction companies in the S&P 500, 53.8% have already reported their results. According to our earnings preview report, 57.1% of these companies have surpassed earnings estimates and 42.9% came ahead of revenue expectations. Total earnings of these construction companies increased 14.3% on 11.3% increase in revenues.
Positives like a healthier economy, improving employment levels, low interest rates, positive consumer confidence and a tight supply situation raise optimism about the sector’s performance in the second half.
In addition to home construction, the home remodeling market has also picked up pace. Improved construction and remodeling activity have increased demand for building products.
On Jul 26, one of the leading building product companies, Masco Corporation (MAS - Free Report) reported second-quarter 2016 results. While its earnings beat estimates, revenues came in line with the same. The second-quarter performance was backed by significant year-over-year growth in earnings, revenues and margin, as the company capitalized on improving momentum in the repair and remodeling and new home construction industry.
Yesterday, another construction company, Martin Marietta Materials, Inc. (MLM - Free Report) reported second-quarter 2016 results. The company missed the Zacks Consensus Estimate for both the top- and bottom line. Despite improving economic conditions and cost management and improved operational efficiency, the company’s profitability was hurt by wet weather in Texas during the majority of the second quarter of 2016 and the El Nino effect, which started in spring 2015 and ended in May 2016.
Next up, three other building products companies are scheduled to report their quarterly results on Aug 4. Let us look at how these companies are placed ahead of their releases.
Louisiana-Pacific is set to report second-quarter fiscal 2016 results before market opens tomorrow.
Last quarter, Louisiana-Pacific posted a positive surprise of 250.00%. Louisiana-Pacific has surpassed estimates in three of the past four quarters, resulting in an average positive surprise of 55.0%.
TopBuild Corp is also set to report second-quarter 2016 results before the bell. TopBuild was formed when Masco Corporation completed the spin-off of its Installation and Other Services segment on Jun 30, 2015.
Last quarter, TopBuild posted a robust positive surprise of 106.67%. The company has delivered positive earnings surprises in three of the last four quarters with an average positive surprise of 24.85%.
TopBuild has an Earnings ESP of 0.00% and a Zacks Rank #3 (Hold). The Zacks Consensus Estimate for the quarter is pegged at 44 cents.
U.S. Concrete, Inc.
U.S. Concrete is set to report second-quarter 2016 results, before market opens.
Last quarter, U.S. Concrete posted a negative earnings surprise of 4.35%. U.S. Concrete surpassed estimates in three out of the past four quarters, resulting in an average positive surprise of 28.23%.
It has an Earnings ESP of -3.41% and a Zacks Rank #3. The Zacks Consensus Estimate for the quarter is pegged at 88 cents.
Conclusion
With the rise in demand for homes, remodeling activities and an improving job market in 2016, building products companies such as the ones discussed above are expected to witness strong demand for their products.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Building Product Stocks Earnings on Aug 4: LPX, BLD, USCR
The construction sector seems to have recovered on the back of strong housing fundamentals. Of the construction companies in the S&P 500, 53.8% have already reported their results. According to our earnings preview report, 57.1% of these companies have surpassed earnings estimates and 42.9% came ahead of revenue expectations. Total earnings of these construction companies increased 14.3% on 11.3% increase in revenues.
Positives like a healthier economy, improving employment levels, low interest rates, positive consumer confidence and a tight supply situation raise optimism about the sector’s performance in the second half.
In addition to home construction, the home remodeling market has also picked up pace. Improved construction and remodeling activity have increased demand for building products.
On Jul 26, one of the leading building product companies, Masco Corporation (MAS - Free Report) reported second-quarter 2016 results. While its earnings beat estimates, revenues came in line with the same. The second-quarter performance was backed by significant year-over-year growth in earnings, revenues and margin, as the company capitalized on improving momentum in the repair and remodeling and new home construction industry.
Yesterday, another construction company, Martin Marietta Materials, Inc. (MLM - Free Report) reported second-quarter 2016 results. The company missed the Zacks Consensus Estimate for both the top- and bottom line. Despite improving economic conditions and cost management and improved operational efficiency, the company’s profitability was hurt by wet weather in Texas during the majority of the second quarter of 2016 and the El Nino effect, which started in spring 2015 and ended in May 2016.
Next up, three other building products companies are scheduled to report their quarterly results on Aug 4. Let us look at how these companies are placed ahead of their releases.
Louisiana-Pacific Corp. (LPX - Free Report)
Louisiana-Pacific is set to report second-quarter fiscal 2016 results before market opens tomorrow.
Last quarter, Louisiana-Pacific posted a positive surprise of 250.00%. Louisiana-Pacific has surpassed estimates in three of the past four quarters, resulting in an average positive surprise of 55.0%.
LOUISIANA PAC Price and EPS Surprise
LOUISIANA PAC Price and EPS Surprise | LOUISIANA PAC Quote
It has an Earnings ESP of 0.00% and a Zacks Rank #1 (Strong Buy). The Zacks Consensus Estimate for the quarter is pegged at 25 cents.
TopBuild Corp. (BLD - Free Report)
TopBuild Corp is also set to report second-quarter 2016 results before the bell. TopBuild was formed when Masco Corporation completed the spin-off of its Installation and Other Services segment on Jun 30, 2015.
Last quarter, TopBuild posted a robust positive surprise of 106.67%. The company has delivered positive earnings surprises in three of the last four quarters with an average positive surprise of 24.85%.
TOPBUILD CORP Price and EPS Surprise
TOPBUILD CORP Price and EPS Surprise | TOPBUILD CORP Quote
TopBuild has an Earnings ESP of 0.00% and a Zacks Rank #3 (Hold). The Zacks Consensus Estimate for the quarter is pegged at 44 cents.
U.S. Concrete, Inc.
U.S. Concrete is set to report second-quarter 2016 results, before market opens.
Last quarter, U.S. Concrete posted a negative earnings surprise of 4.35%. U.S. Concrete surpassed estimates in three out of the past four quarters, resulting in an average positive surprise of 28.23%.
US CONCRETE INC Price and EPS Surprise
US CONCRETE INC Price and EPS Surprise | US CONCRETE INC Quote
It has an Earnings ESP of -3.41% and a Zacks Rank #3. The Zacks Consensus Estimate for the quarter is pegged at 88 cents.
Conclusion
With the rise in demand for homes, remodeling activities and an improving job market in 2016, building products companies such as the ones discussed above are expected to witness strong demand for their products.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>