Construction Earnings Releases On May 10: WMS, GCP, TREX
Zacks Investment Research | May 08, 2016 10:40PM ET
Now that most of the construction stocks have reported their first quarter 2016 results, let us take a closer look at how well these companies began the year. According to our earnings preview report , 83.3% of the construction companies have beaten earnings estimates while 75.0% have surpassed top-line expectations during the first quarter of 2016.
While some of the headwinds like a volatile energy sector, unfavorable currency translations, and global uncertainties remain, the construction sector has had a positive earnings season so far this season. Most homebuilders, including Lennar Corporation (NYSE:LEN) , KB Home (NYSE:KBH) PulteGroup, Inc. (NYSE:PHM) and D.R. Horton, Inc. (NYSE:DHI) witnessed strong demand and traffic trends. They expect the growth momentum to sustain through the rest of the year. Positives like an improving economy, rising wages, a favorable job outlook and a tight supply situation fuels optimism about the sector’s performance in the rest of 2016.
An increase in home construction activity not only benefits homebuilders but also spurs demand for homebuilding materials, home decoration products and other related businesses. This, in turn, boosts the growth prospects of companies manufacturing these products.
Last week, construction materials companies Vulcan Materials Company (NYSE:VMC) and Martin Marietta Materials, Inc. (NYSE:MLM) reported solid first quarter earnings and sales surprises on the back of rising demand for aggregates (used for construction activity). Meanwhile, reporting in the same week, Weyerhaeuser Company (NYSE:WY) also delivered a positive earnings surprise in the first quarter of 2016. However, its top line came in below the Zacks Consensus Estimate.
Next up, three companies from the construction sector, Advanced Drainage Systems, Inc. (NYSE:WMS) , GCP Applied Technologies Inc. (NYSE:GCP) and Trex Co. Inc. (NYSE:TREX) are set to report their quarterly results on May 10. Will these companies put up a decent performance as well? Let’s have a look at what might be in store for them.
Advanced Drainage Systems, Inc. (WMS)
Ohio based drainage system company, Advanced Drainage Systems is set to report its fiscal fourth quarter 2016 results.
The company has an Earnings ESP of +800.00% and a Zacks Rank #5 (Strong Sell). The Zacks Consensus Estimate for the quarter is pegged at a loss of 1 cent.
Get The News You Want
GCP Applied Technologies Inc. (GCP)
A products and technology solutions provider for the construction sector, GCP Applied Technologies is set to report first quarter 2016 results before the market opens.
The company has an Earnings ESP of 0.00% and a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for the quarter is pegged at 17 cents.
Trex Co. Inc. (TREX)
Trex is set to report first-quarter 2016 results before the market opens.
Last quarter, the company delivered a positive earnings surprise of 13.04%. The outdoor living products company posted two positive earnings surprises in the past four quarters with an average of 0.89%. The company has an Earnings ESP of 0.00% and a Zacks Rank #2. The Zacks Consensus Estimate for the quarter is pegged at 65 cents.
Zacks Investment Research
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.