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Building Product Stocks' Q3 Earnings on Oct 26: OC, OSB, IBP
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The construction sector seems to have recovered on the back of strong housing fundamentals. Of the construction companies in the S&P 500 cohort, 30.8% have already reported their Q3 results. According to the Zacks Earnings Trends report, 50% of these companies have surpassed earnings estimates while 25% beat revenue expectations.
Total earnings at these construction companies increased 6.7% on 14.3% higher revenues. Construction sector is likely to register a 6.9% increase in earnings on 7.1% revenue growth.
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. Further, a strong home remodeling market, along with strong job data and rising consumer confidence, is doing the trick for these stocks.
So far, some of the leading homebuilding companies have reported their third-quarter results. On Oct 20, PulteGroup Inc.’s (PHM - Free Report) third-quarter 2016 earnings were in line with the Zacks Consensus Estimate while revenues missed the same. Earlier, Lennar Corporation (LEN - Free Report) performed impressively and beat expectations on both counts for the third time in a row in fiscal 2016. On Sep 20, KB Home (KBH - Free Report) reported its third-quarter numbers wherein earnings surpassed analysts’ expectations by 7.7% and also increased 83% year over year.
Let us take a look at how these construction companies are placed ahead of their third-quarter earnings releases on Oct 26.
Headquartered in Toledo, OH, Owens Corning (OC - Free Report) develops, manufactures and markets insulation, roofing, and fiberglass composites. The company has an Earnings ESP of 0.00% and a Zacks Rank #3 (Hold). Our proven model does not conclusively show that Owens Corning is likely to beat earnings this quarter.
Last quarter, the company posted a positive earnings surprise of 51.76%. The company reported positive earnings surprises in all of the past four quarters, with an average beat of 50.89%. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
For the third quarter, the Zacks Consensus Estimate for earnings is pegged at 99 cents a share, reflecting an increase of 3.3% year over year, while the consensus for revenues is at $1.51 billion, implying 3.6% year-over-year growth.
Norbord, Inc. designs, manufactures, and supplies electro-optical systems and medical instruments utilizing laser, precision optic and microelectronic technologies. Last quarter, the company posted a positive earnings surprise of 40.00%.
The company has an earnings ESP of 0.00% and a Zacks Rank #1 (Strong Buy). Hence, it does not conclusively show that Norbord is likely to beat earnings this quarter.
The Zacks Consensus Estimate for the quarter’s earnings is pegged at 51 cents.
It reported a negative earnings surprise of 10.81% in the preceding quarter and an average negative surprise of 8.61% for the trailing four quarters.
For the third quarter, the Zacks Consensus Estimate for earnings is pegged at 44 cents a share, reflecting an increase of 45.6% year over year, while the consensus for revenues is at $230.5 million, implying 27% year-over-year growth.
This week, Zacks researchers have named 7 other stocks that look to break out even sooner than today's Bull of the Day. You can see these time-sensitive tickers free, and access additional trades that are not available to the public. Simply click here>>
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Building Product Stocks' Q3 Earnings on Oct 26: OC, OSB, IBP
The construction sector seems to have recovered on the back of strong housing fundamentals. Of the construction companies in the S&P 500 cohort, 30.8% have already reported their Q3 results. According to the Zacks Earnings Trends report, 50% of these companies have surpassed earnings estimates while 25% beat revenue expectations.
Total earnings at these construction companies increased 6.7% on 14.3% higher revenues. Construction sector is likely to register a 6.9% increase in earnings on 7.1% revenue growth.
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. Further, a strong home remodeling market, along with strong job data and rising consumer confidence, is doing the trick for these stocks.
So far, some of the leading homebuilding companies have reported their third-quarter results. On Oct 20, PulteGroup Inc.’s (PHM - Free Report) third-quarter 2016 earnings were in line with the Zacks Consensus Estimate while revenues missed the same. Earlier, Lennar Corporation (LEN - Free Report) performed impressively and beat expectations on both counts for the third time in a row in fiscal 2016. On Sep 20, KB Home (KBH - Free Report) reported its third-quarter numbers wherein earnings surpassed analysts’ expectations by 7.7% and also increased 83% year over year.
Let us take a look at how these construction companies are placed ahead of their third-quarter earnings releases on Oct 26.
Headquartered in Toledo, OH, Owens Corning (OC - Free Report) develops, manufactures and markets insulation, roofing, and fiberglass composites. The company has an Earnings ESP of 0.00% and a Zacks Rank #3 (Hold). Our proven model does not conclusively show that Owens Corning is likely to beat earnings this quarter.
Last quarter, the company posted a positive earnings surprise of 51.76%. The company reported positive earnings surprises in all of the past four quarters, with an average beat of 50.89%. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
For the third quarter, the Zacks Consensus Estimate for earnings is pegged at 99 cents a share, reflecting an increase of 3.3% year over year, while the consensus for revenues is at $1.51 billion, implying 3.6% year-over-year growth.
OWENS CORNING Price and EPS Surprise
OWENS CORNING Price and EPS Surprise | OWENS CORNING Quote
Norbord, Inc. designs, manufactures, and supplies electro-optical systems and medical instruments utilizing laser, precision optic and microelectronic technologies. Last quarter, the company posted a positive earnings surprise of 40.00%.
The company has an earnings ESP of 0.00% and a Zacks Rank #1 (Strong Buy). Hence, it does not conclusively show that Norbord is likely to beat earnings this quarter.
The Zacks Consensus Estimate for the quarter’s earnings is pegged at 51 cents.
NORBORD INC Price and EPS Surprise
NORBORD INC Price and EPS Surprise | NORBORD INC Quote
Building products company Installed Building Products, Inc. (IBP - Free Report) carries a Zacks Rank #3 and has an Earnings ESP of 0.00%. You can see the complete list of today’s Zacks #1 Rank stocks here.
It reported a negative earnings surprise of 10.81% in the preceding quarter and an average negative surprise of 8.61% for the trailing four quarters.
For the third quarter, the Zacks Consensus Estimate for earnings is pegged at 44 cents a share, reflecting an increase of 45.6% year over year, while the consensus for revenues is at $230.5 million, implying 27% year-over-year growth.
INSTALLED BUILD Price and EPS Surprise
INSTALLED BUILD Price and EPS Surprise | INSTALLED BUILD Quote
Confidential from Zacks
This week, Zacks researchers have named 7 other stocks that look to break out even sooner than today's Bull of the Day. You can see these time-sensitive tickers free, and access additional trades that are not available to the public. Simply click here>>