Breaking News
0

Construction Earnings Due On Jul 31: KBR, TMHC, MDC & More

By Zacks Investment ResearchStock MarketsJul 29, 2019 10:45PM ET
www.investing.com/analysis/construction-earnings-due-on-jul-31-kbr-tmhc-mdc--more-200447287
Construction Earnings Due On Jul 31: KBR, TMHC, MDC & More
By Zacks Investment Research   |  Jul 29, 2019 10:45PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

The second-quarter earnings season appears to be lackluster for the construction stocks due to softness in the housing sector and rising costs. Weak construction spending in the United States, moderating U.S. economic growth and slowdown in other major global economic regions have somewhat offset positive factors like solid job market, increased infrastructure spending (mainly in non-residential areas) and a decline in mortgage rate environment.

Additionally, limited land availability, higher land/labor and material costs, as well as concerns surrounding trade tensions have added to the woes. Despite declining mortgage rates, improving builder sentiments and solid job market, affordability concerns for millennials and first timers remain.

According to the latest Earnings Preview, the construction sector’s earnings, within the S&P 500 cohort, are expected to fall 6.7% year over year in the second quarter compared with 4.9% decline in the preceding quarter. Revenues are also expected to drop 1.1% from the prior-year quarter against 4.6% growth registered in the first quarter.

So far, some of the leading companies in the construction sector, like Lennar Corporation (NYSE:LEN) , United Rentals, Inc. (NYSE:URI) , Fastenal Company (NASDAQ:FAST) and Masco Corporation (NYSE:MAS) have reported Q2 results.

Fastenal, one of the largest wholesale distributors of industrial and construction supplies, reported lower-than-expected second-quarter 2019 earnings and revenues. In fact, its earnings declined 2.7% from the year-ago period due to slower activity levels. Then again, Lennar and United Rentals’ bottom line not only surpassed analysts’ expectations but also grew on an annualized basis.

Construction Stocks Reporting on Jul 31

Let us take a look at how the following construction companies are placed ahead of their upcoming quarterly release on Jul 31.

Our research shows that for companies with the combination of a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) and a positive Earnings ESP, the chances of beating earnings estimates are high. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Meanwhile, we caution against stocks with a Zacks Rank #4 and 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

KBR, Inc. (NYSE:KBR) is scheduled to report second-quarter results before the opening bell. In the last reported quarter, the company’s adjusted earnings came in at 36 cents per share, beating the Zacks Consensus Estimate of 33 cents by 9.1%. In fact, KBR surpassed the Zacks Consensus Estimate in each of the trailing four quarters, delivering average positive surprise of 8.9%.

The company has the right combination of the two key ingredients for likely earnings beat in the to-be-reported quarter. It has an Earnings ESP of +1.16% and carries a Zacks Rank #2.

For the quarter to be reported, the Zacks Consensus Estimate — which has displayed an upward trend over the past 30 days — is currently pegged at 40 cents. This indicates an increase of 17.7% from the year-ago earnings of 34 cents per share. Revenues are expected to be $1.38 billion, up 8.7% year over year.

KBR, Inc. Price and EPS Surprise

Taylor Morrison Home Corporation (NYSE:TMHC) is scheduled to report second-quarter numbers before the opening bell. The company reported better-than-expected results in each of the last four quarters, with the average being 38.7%.

The company has the right combination of elements to deliver an earnings beat in the upcoming report. It has an Earnings ESP of +15.87% and a Zacks Rank #3.

For the quarter to be reported, the Zacks Consensus Estimate has trended upward over the past 30 days and is currently pegged at 63 cents, suggesting 21.2% year-over-year growth. Total revenues are expected to be $1.13 billion, up 15.7% year over year.

Taylor Morrison Home Corporation Price and EPS Surprise

M.D.C. Holdings, Inc. (NYSE:MDC) is scheduled to report second-quarter results before the opening bell. The company’s earnings topped estimates in two of the last four quarters, with the average positive surprise being 8.3%.

Meanwhile, our proven model hints at an earnings beat for the company in the to-be-reported quarter, as M.D.C. Holdings has an Earnings ESP of +2.68% and a Zacks Rank #1.

For the quarter to be reported, the Zacks Consensus Estimate has moved north over the past 30 days and is currently pegged at 78 cents. This indicates 25% decline from the year-ago earnings of $1.04 per share. Revenues are expected to be $736.97 million, down 4.4% year over year.

M.D.C. Holdings, Inc. Price and EPS Surprise

Skyline Champion Corporation (NYSE:SKY) is scheduled to report fiscal first-quarter 2020 results after the closing bell. The company surpassed the Zacks Consensus Estimate in two of the trailing four quarters, delivering average positive surprise of 15.5%.

We cannot conclusively predict a beat for the company in the quarter to be reported as it has an Earnings ESP of 0.00% and a Zacks Rank #3.

The Zacks Consensus Estimate for to-be-reported quarter’s earnings is pegged at 28 cents, indicating an improvement from loss of 2 cents reported in the year-ago period. The consensus estimate for revenues is pegged at $352.6 million, up 9.4% year over year.

Skyline Corporation Price and EPS Surprise

Today's Best Stocks from Zacks

Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.

This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.

See their latest picks free >>



United Rentals, Inc. (URI): Free Stock Analysis Report

Masco Corporation (MAS): Free Stock Analysis Report

Fastenal Company (FAST): Free Stock Analysis Report

Skyline Corporation (SKY): Free Stock Analysis Report

M.D.C. Holdings, Inc. (MDC): Free Stock Analysis Report

Taylor Morrison Home Corporation (TMHC): Free Stock Analysis Report

Lennar Corporation (LEN): Free Stock Analysis Report

KBR, Inc. (KBR): Free Stock Analysis Report

Original post

Zacks Investment Research
Construction Earnings Due On Jul 31: KBR, TMHC, MDC & More
 
Construction Earnings Due On Jul 31: KBR, TMHC, MDC & More

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email