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Construction Stock Q2 Earnings Due on Aug 7: LPX, JELD & More

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Construction Stock Q2 Earnings Due on Aug 7: LPX, JELD & More

The construction sector looks to be on solid ground, given an improving economy and increasing infrastructure spending. However, higher land/labor and material costs pose a risk.

The construction sector appears to be on solid ground given strong demand, aided by favorable household formation trends and a strengthening macro backdrop. Elevated construction spending in the United States, an impressive labor market scenario, moderate inflation and Trump’s impetus to boost infrastructure spending seem to be vital growth catalysts for the companies under the sector.

Indeed, limited land availability, higher land/labor and material costs, as well as a constrained mortgage environment are restricting the construction stocks from responding to the growing demand. Then again, higher demand, booming economy along with solid job market will keep the momentum alive.

According to the latest Earnings Preview, the construction sector’s earnings, within the S&P 500 cohort, are expected to increase 52.6% in the second quarter compared with 49.7% in the last reported quarter. Revenues are also expected to improve 24.4% (versus 20.9% growth in the first quarter).

So far, a number of leading companies in the construction sector have reported second-quarter results. Fluor Corporation (FLR) reported earnings of 81 cents per share in second-quarter 2018, beating the Zacks Consensus Estimate of 69 cents by 17.4%. Also, the company’s revenues of $4,883.8 million surpassed the consensus mark of $4,510 million.

Let’s have a sneak peek at the three major construction stocks that are scheduled to report second-quarter earnings on Aug 7 and find out how things are shaping up before the announcement.

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

Louisiana-Pacific Corporation LPX is scheduled to report quarterly results before the opening bell.

In the last reported quarter, the company’s adjusted earnings came in at 63 cents per share, missing the Zacks Consensus Estimate of 71 cents by 11.3%. Though the company missed estimates in three of the past four quarters, it recorded an average positive surprise of 0.8%.

Our proven model hints at an earnings beat for the company in the to-be-reported quarter, as Louisiana-Pacific has an Earnings ESP of +8.62% and sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Overall, for the second quarter, the Zacks Consensus Estimate for total revenues is pegged at $788.6 million, implying 13.6% growth. The Zacks Consensus Estimate for earnings is pegged at 97 cents, reflecting a 67.2% year-over-year increase.

Louisiana-Pacific Corporation Price and EPS Surprise

Louisiana-Pacific Corporation Price and EPS Surprise | Louisiana-Pacific Corporation Quote

JELD-WEN Holding, Inc. JELD is slated to release quarterly results before the opening bell.

In the last reported quarter, the company’s adjusted earnings came in at 30 cents per share, beating the Zacks Consensus Estimate of 23 cents by 30.4%. However, the company missed estimates in two of the past four quarters, resulting in an average negative surprise of 0.6%.

We cannot conclusively predict an earnings beat for the company in the quarter to be reported, as it has an Earnings ESP of +0.60% and a Zacks Rank #4.

Overall, for the second quarter, the Zacks Consensus Estimate for earnings is pegged at 56 cents, reflecting a 9.8% year-over-year increase. The consensus estimate for revenues is pegged at $1.2 billion, implying a 22.2% increase.

JELD-WEN Holding, Inc. Price and EPS Surprise

JELD-WEN Holding, Inc. Price and EPS Surprise | JELD-WEN Holding, Inc. Quote

TopBuild Corp. BLD is slated to release quarterly results before the opening bell.

The company delivered a positive surprise of 8.96% in the last reported quarter. Also, the company surpassed estimates in all the past four quarters, resulting in an average positive surprise of 7.4%.

We cannot conclusively predict an earnings beat for the company in the second quarter, as it has an Earnings ESP of -7.69% and a Zacks Rank #3.

Overall, for the second quarter, the Zacks Consensus Estimate for earnings is pegged at 98 cents, reflecting a 46.3% year-over-year increase. The consensus estimate for revenues is pegged at $594.4 million, implying a 25.3% increase.

TopBuild Corp. Price and EPS Surprise

TopBuild Corp. Price and EPS Surprise | TopBuild Corp. Quote

GCP Applied Technologies Inc. GCP is slated to release quarterly results after the market closes.

The company delivered a negative surprise of 80% in the last reported quarter. Also, the company missed estimates in two of the past four quarters, resulting in an average negative surprise of 17.1%.

It has an Earnings ESP of +2.56% and a Zacks Rank #3, which increases the odds of an earnings beat.

Overall, for the second quarter, the Zacks Consensus Estimate for earnings is pegged at 39 cents, reflecting a 69.6% year-over-year increase. The consensus estimate for revenues is pegged at $321.8 million, implying a 12.1% increase.

GCP Applied Technologies Inc. Price and EPS Surprise

GCP Applied Technologies Inc. Price and EPS Surprise | GCP Applied Technologies Inc. Quote

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