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.
Construction Stocks Reporting Q4 Earnings on Feb 3: WY, OSB
Read MoreHide Full Article
After a string of releases by construction companies, we are gearing up for the next batch of fourth-quarter earnings reports this week. Overall, earnings growth for the quarter is on track to mark growth and construction seems to be one of the stand-out sectors.
The Q4 earnings season has so far seen quarterly releases from 46.2% of the construction companies in the S&P 500 cohort. According to the latest Earnings Outlook report, 83.3% of the companies have surpassed earnings as well as revenue expectations. Total earnings at these construction companies increased 13.8% on 13.4% higher revenues.
Although the positive momentum at the start of 2017 seems to have lost steam as mortgage rates have been inching up since the November presidential election, sales of new homes grew 12.2% in 2016 from a year earlier -- marking the best in a decade. Sales growth during 2016 was majorly boosted by affordable mortgage rates and a steadily improving job market.
Positives like a healthier economy, improving employment levels, positive consumer confidence and a tight supply situation raise optimism about the sector’s performance in 2017.
So far, some of the leading companies in the construction sector have reported their Q4 results. D.R. Horton, Inc. (DHI - Free Report) exhibited an impressive performance in the first quarter of fiscal 2017, with earnings and revenues beating the Zacks Consensus Estimate by 17% and 6.8%, respectively. M.D.C. Holdings Inc. (MDC - Free Report) reported fourth-quarter 2016 earnings of 78 cents per share, beating the consensus mark by 10 cents. The homebuilder also posted revenues of $736.3 million in the quarter, surpassing the Zacks Consensus Estimate of $680 million.
Let us take a look at how these two construction companies are placed ahead of their fourth-quarter 2016 releases on Feb 3.
Based in Washington, Weyerhaeuser Company (WY - Free Report) is one of the leading U.S. forest product companies with operations primarily concentrated in Southern California, Nevada, Washington, Texas, Maryland and Virginia.
Weyerhaeuser’s segmental results are highly dependent on the U.S. housing market. Housing starts were healthy in the U.S. in the fourth quarter while recording an increase of 4.9% in 2016. We believe that such improvements must support the company’s forecasts of sequentially higher earnings for the Timberland and Real Estate, Energy and Natural Resources segments in the quarter.
Along with that, the company’s various strategic alternatives will enable the company to boost its profitability.
Our model suggests that a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 to beat earnings. In this case, our proven model shows that Weyerhaeuser is likely to beat earnings.
Last quarter, the company posted a positive earnings surprise of 4.55%. Meanwhile, it surpassed estimates in three of the past four quarters, the average being 2.39%.
For the fourth quarter of 2016, the Zacks Consensus Estimate for earnings is pegged at 15 cents a share, reflecting a decrease of 37.5% year over year, while the consensus for revenues is at $1.63 billion, implying 6.2% year-over-year decline (read more: Weyerhaeuser's Q4 Earnings: Is a Beat in the Cards?)
Norbord Inc. , a wood-based panel manufacturer, is slated to report its fourth-quarter 2016 numbers before the market opens.
Last quarter, the company posted a positive earnings surprise of 31.37%. The company surpassed estimates in all of the past three quarters and has an average positive surprise of 99.98%.
Our proven model does not conclusively predict an earnings beat for Norbord this quarter as it has a Zacks Rank #3 and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
For the fourth quarter, the Zacks Consensus Estimate for earnings is pegged at 51 cents, reflecting a 168.4% year-over-year rise.
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Construction Stocks Reporting Q4 Earnings on Feb 3: WY, OSB
After a string of releases by construction companies, we are gearing up for the next batch of fourth-quarter earnings reports this week. Overall, earnings growth for the quarter is on track to mark growth and construction seems to be one of the stand-out sectors.
The Q4 earnings season has so far seen quarterly releases from 46.2% of the construction companies in the S&P 500 cohort. According to the latest Earnings Outlook report, 83.3% of the companies have surpassed earnings as well as revenue expectations. Total earnings at these construction companies increased 13.8% on 13.4% higher revenues.
Although the positive momentum at the start of 2017 seems to have lost steam as mortgage rates have been inching up since the November presidential election, sales of new homes grew 12.2% in 2016 from a year earlier -- marking the best in a decade. Sales growth during 2016 was majorly boosted by affordable mortgage rates and a steadily improving job market.
Positives like a healthier economy, improving employment levels, positive consumer confidence and a tight supply situation raise optimism about the sector’s performance in 2017.
So far, some of the leading companies in the construction sector have reported their Q4 results. D.R. Horton, Inc. (DHI - Free Report) exhibited an impressive performance in the first quarter of fiscal 2017, with earnings and revenues beating the Zacks Consensus Estimate by 17% and 6.8%, respectively. M.D.C. Holdings Inc. (MDC - Free Report) reported fourth-quarter 2016 earnings of 78 cents per share, beating the consensus mark by 10 cents. The homebuilder also posted revenues of $736.3 million in the quarter, surpassing the Zacks Consensus Estimate of $680 million.
Let us take a look at how these two construction companies are placed ahead of their fourth-quarter 2016 releases on Feb 3.
Based in Washington, Weyerhaeuser Company (WY - Free Report) is one of the leading U.S. forest product companies with operations primarily concentrated in Southern California, Nevada, Washington, Texas, Maryland and Virginia.
Weyerhaeuser’s segmental results are highly dependent on the U.S. housing market. Housing starts were healthy in the U.S. in the fourth quarter while recording an increase of 4.9% in 2016. We believe that such improvements must support the company’s forecasts of sequentially higher earnings for the Timberland and Real Estate, Energy and Natural Resources segments in the quarter.
Along with that, the company’s various strategic alternatives will enable the company to boost its profitability.
The company has an Earnings ESP of +6.67% and a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Our model suggests that a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 to beat earnings. In this case, our proven model shows that Weyerhaeuser is likely to beat earnings.
Last quarter, the company posted a positive earnings surprise of 4.55%. Meanwhile, it surpassed estimates in three of the past four quarters, the average being 2.39%.
For the fourth quarter of 2016, the Zacks Consensus Estimate for earnings is pegged at 15 cents a share, reflecting a decrease of 37.5% year over year, while the consensus for revenues is at $1.63 billion, implying 6.2% year-over-year decline (read more: Weyerhaeuser's Q4 Earnings: Is a Beat in the Cards?)
Weyerhaeuser Company Price and EPS Surprise
Weyerhaeuser Company Price and EPS Surprise | Weyerhaeuser Company Quote
Norbord Inc. , a wood-based panel manufacturer, is slated to report its fourth-quarter 2016 numbers before the market opens.
Last quarter, the company posted a positive earnings surprise of 31.37%. The company surpassed estimates in all of the past three quarters and has an average positive surprise of 99.98%.
Our proven model does not conclusively predict an earnings beat for Norbord this quarter as it has a Zacks Rank #3 and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
For the fourth quarter, the Zacks Consensus Estimate for earnings is pegged at 51 cents, reflecting a 168.4% year-over-year rise.
Norbord Inc. Price and EPS Surprise
Norbord Inc. Price and EPS Surprise | Norbord Inc. Quote
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>