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.
Owens Corning (OC) to Post Q3 Earnings: What's in the Cards?
Read MoreHide Full Article
Owens Corning (OC - Free Report) is slated to report third-quarter 2019 results on Oct 23, before the opening bell.
In the last reported quarter, the company’s earnings and net sales not only topped the respective Zacks Consensus Estimate by 15.9% and 5.1%, but also improved 11% and 5.2% on a year-over-year basis, courtesy of increased organic growth, improved operating efficiencies and higher contribution from the Roofing business.
Notably, Owens Corning’s earnings surpassed the consensus mark in two of the trailing four quarters, with the average positive surprise being 2.4%.
How are Estimates Faring?
Let’s take a look at the estimate revision trend in order to get a clear picture of what analysts are thinking about the company prior to the earnings release.
The Zacks Consensus Estimate for the to-be-reported quarter’s earnings has increased to $1.51 from $1.50 per share over the past 30 days. However, this indicates a decrease of 2% from the year-ago reported figure of $1.54 per share. Revenues are expected to be $1.85 billion, suggesting a 1.5% year-over-year decline.
Owens Corning’s third-quarter revenues are expected to have benefited from strong contribution from the Roofing segment (accounting for 40.6% of revenues), backed by increased storm activity. Also, the Insulation business is expected to have regained market share in the quarter and aided its top line.
Acquisitions — which play an important role in Owens Corning’s growth strategy — and strong price realization are expected to have boosted its performance in the third quarter, partially offsetting asphalt cost inflation. Although material and transportation inflation is expected to get reflected in the company’s margins, particularly for the Roofing and Insulation business, solid pricing momentum is likely to have offset the negatives.
The Zacks Consensus Estimate for Roofing segment revenues is pegged at $711 million, indicating a year-over-year rise of 10% but a sequential decrease of 8.6%. Meanwhile, the company’s Insulation segment (accounting for 34.5% of revenues) revenues are estimated to reach $710 million, suggesting flat year-over-year growth but a 7.4% sequential rise. Moreover, the consensus mark for the Composites segment (accounting for 27.9% of revenues) revenues is pegged at $504 million, implying 0.8% year-over-year decline and 5.8% sequential fall.
Overall, strategic acquisitions, impressive pricing momentum, strong organic growth, operating efficiencies and solid Roofing business are expected to have positively affected the company’s third-quarter performance. Also, solid commercial execution, strong manufacturing gains and disciplined cost control are likely to be reflected in its results. However, increased raw material and transportation costs, adverse geographic mix, negative impact of foreign currency translation, along with lower shingle volumes are expected to have hampered the bottom line.
What Our Model Indicates
Our proven model does not predict that Owens Corning is likely to beat estimates in the quarter to be reported. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to deliver a positive surprise. This is not the case here, as you will see below.
Earnings ESP: Owens Corning has an Earnings ESP of -1.33%. This is because the Most Accurate Estimate of $1.49 is lower than the Zacks Consensus Estimate of $1.51. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are some companies in the Zacks Construction sector, which according to our model have the right combination of elements to post an earnings beat in their respective quarters to be reported.
Meritage Corporation (MTH - Free Report) has an Earnings ESP of +0.45% and a Zacks Rank #1.
Jacobs Engineering Group Inc. has an Earnings ESP of +2.20% and holds a Zacks Rank #2.
Martin Marietta Materials, Inc. (MLM - Free Report) has an Earnings ESP of +1.77% and carries a Zacks Rank #2.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 7 stocks to watch. The report is only available for a limited time.
Image: Bigstock
Owens Corning (OC) to Post Q3 Earnings: What's in the Cards?
Owens Corning (OC - Free Report) is slated to report third-quarter 2019 results on Oct 23, before the opening bell.
In the last reported quarter, the company’s earnings and net sales not only topped the respective Zacks Consensus Estimate by 15.9% and 5.1%, but also improved 11% and 5.2% on a year-over-year basis, courtesy of increased organic growth, improved operating efficiencies and higher contribution from the Roofing business.
Notably, Owens Corning’s earnings surpassed the consensus mark in two of the trailing four quarters, with the average positive surprise being 2.4%.
How are Estimates Faring?
Let’s take a look at the estimate revision trend in order to get a clear picture of what analysts are thinking about the company prior to the earnings release.
The Zacks Consensus Estimate for the to-be-reported quarter’s earnings has increased to $1.51 from $1.50 per share over the past 30 days. However, this indicates a decrease of 2% from the year-ago reported figure of $1.54 per share. Revenues are expected to be $1.85 billion, suggesting a 1.5% year-over-year decline.
Owens Corning Inc Price and EPS Surprise
Owens Corning Inc price-eps-surprise | Owens Corning Inc Quote
Factors to Consider
Owens Corning’s third-quarter revenues are expected to have benefited from strong contribution from the Roofing segment (accounting for 40.6% of revenues), backed by increased storm activity. Also, the Insulation business is expected to have regained market share in the quarter and aided its top line.
Acquisitions — which play an important role in Owens Corning’s growth strategy — and strong price realization are expected to have boosted its performance in the third quarter, partially offsetting asphalt cost inflation. Although material and transportation inflation is expected to get reflected in the company’s margins, particularly for the Roofing and Insulation business, solid pricing momentum is likely to have offset the negatives.
The Zacks Consensus Estimate for Roofing segment revenues is pegged at $711 million, indicating a year-over-year rise of 10% but a sequential decrease of 8.6%. Meanwhile, the company’s Insulation segment (accounting for 34.5% of revenues) revenues are estimated to reach $710 million, suggesting flat year-over-year growth but a 7.4% sequential rise. Moreover, the consensus mark for the Composites segment (accounting for 27.9% of revenues) revenues is pegged at $504 million, implying 0.8% year-over-year decline and 5.8% sequential fall.
Overall, strategic acquisitions, impressive pricing momentum, strong organic growth, operating efficiencies and solid Roofing business are expected to have positively affected the company’s third-quarter performance. Also, solid commercial execution, strong manufacturing gains and disciplined cost control are likely to be reflected in its results. However, increased raw material and transportation costs, adverse geographic mix, negative impact of foreign currency translation, along with lower shingle volumes are expected to have hampered the bottom line.
What Our Model Indicates
Our proven model does not predict that Owens Corning is likely to beat estimates in the quarter to be reported. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to deliver a positive surprise. This is not the case here, as you will see below.
Earnings ESP: Owens Corning has an Earnings ESP of -1.33%. This is because the Most Accurate Estimate of $1.49 is lower than the Zacks Consensus Estimate of $1.51. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Owens Corning currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks Worth a Look
Here are some companies in the Zacks Construction sector, which according to our model have the right combination of elements to post an earnings beat in their respective quarters to be reported.
Meritage Corporation (MTH - Free Report) has an Earnings ESP of +0.45% and a Zacks Rank #1.
Jacobs Engineering Group Inc. has an Earnings ESP of +2.20% and holds a Zacks Rank #2.
Martin Marietta Materials, Inc. (MLM - Free Report) has an Earnings ESP of +1.77% and carries a Zacks Rank #2.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 7 stocks to watch. The report is only available for a limited time.
See 7 breakthrough stocks now>>