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Installed Building (IBP) to Report Q1 Earnings: What to Expect?

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Installed Building Products, Inc. (IBP - Free Report) is scheduled to report first-quarter 2024 results on May 9 before the opening bell.

In the last reported quarter, the company’s earnings and net revenues topped the Zacks Consensus Estimate by 7.5% and 4.6%, respectively.

The company’s earnings surpassed expectations in three of the trailing four quarters and missed on one occasion, the average surprise being 7.4%.

The Trend in Estimate Revision

The Zacks Consensus Estimate for Installed Building’s first-quarter earnings per share (EPS) dwindled in the past 30 days to $2.23 from $2.28. The estimated figure reflects 3.7% growth from earnings of $2.15 per share in the year-ago quarter.

The consensus estimate for net revenues is pegged at $676.6 million, indicating a 2.6% increase from the prior-year quarter’s figure of $659.3 million.

Factors to Note

The top line of the company is expected to have increased year over year most likely on the back of solid growth in multi-family residential and commercial end markets as well as accretive buyouts. IBP prioritizes profitable growth through its proven strategy of acquiring well-run installers of insulation and complementary building products.

Also, its national scale, asset-light model and diverse end-product categories are added positives.

Although softer single-family sales are likely to have been concerning, the aforementioned tailwinds are expected to have more than offset the negative impacts.

Installed Building’s bottom line is expected to have benefited year over year due to its focus on an efficient capital allocation strategy. Also, emphasis on service value over volume is likely to have added to the uptrend.

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for Installed Building this time around. The company does not have the right combination of the two key elements — 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: IBP has an Earnings ESP of 0.00%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company currently carries a Zacks Rank of 3.

Stocks Poised to Beat Earnings

Here are some companies in the Zacks Construction sector that have the right combination of elements to post an earnings beat.

Janus International Group, Inc. (JBI - Free Report) currently has an Earnings ESP of +5.26% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

JBI’s earnings for first-quarter 2024 are expected to gain 5.6% from last year's quarter’s reported figure. The company reported better-than-expected earnings in two of the last four quarters, missed on one occasion and met the remaining occasion, the average surprise being 8.4%.

Trex Company, Inc. (TREX - Free Report) currently has an Earnings ESP of +3.32% and a Zacks Rank of 3.

TREX’s earnings for first-quarter 2024 are expected to increase 89.5% from last year's quarter’s reported figure. The company reported better-than-expected earnings in each of the trailing four quarters, the average surprise being 17.1%.

Peer Release

Gibraltar Industries, Inc. (ROCK - Free Report) reported mixed first-quarter 2024 results, with quarterly earnings surpassing the Zacks Consensus Estimate and increasing on a year-over-year basis. Net sales declined from the previous year’s levels and missed the consensus mark.

The company’s quarterly results reflect organic growth, increased volume, improving customer and product mix, accretive 80/20 initiatives, better price and cost alignment, along with supply-chain optimization initiatives and improvements in project management systems. Gibraltar is optimistic about its upcoming growth prospects with its robust end-market fundamentals, backed by increased backlog levels.

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

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