Gibraltar (ROCK) to Report Q3 Earnings: What's in Store?
Gibraltar Industries, Inc. ROCK is set to report third-quarter 2023 results on Nov 2 before the opening bell.
In the last reported quarter, the company’s earnings and net sales topped the Zacks Consensus Estimate by 21.7% and 3.8%, respectively. Furthermore, on a year-over-year basis, the bottom line grew 22.9% but the top line declined 0.5%.
Notably, its earnings surpassed expectations in the trailing four quarters, the average surprise being 11.2%.
The Trend in Estimate Revision
The Zacks Consensus Estimate for Gibraltar’s third-quarter earnings per share remained unchanged at $1.12. The estimated figure is on par with the year-ago quarter’s reported figure.
Gibraltar Industries, Inc. Price and EPS Surprise
Gibraltar Industries, Inc. price-eps-surprise | Gibraltar Industries, Inc. Quote
The consensus estimate for net sales is pegged at $384.1 million, indicating a 1.9% decrease from the prior-year quarter’s figure of $391.3 million.
Factors to Note
Gibraltar’s net sales in third-quarter 2023 are likely to decline year over year, attributable to dismal Renewables (which accounted for 21.2% of second-quarter 2023 total sales) and Agtech (accounted for 9.6% of total sales) segments’ contributions, driven by project delays concerning solar module availability, project permitting and project rescoping as well as continuous channel inventory right-sizing.
However, these headwinds are quite likely to have been partially offset by positive contributions from the Residential (accounted for 62.5% of total sales) and Infrastructure (accounted for 6.6% of total sales) segments on the back of organic sales growth, the acquisition of Quality Aluminum Products and strong end markets demand. Also, accretive 80/20 initiatives and improvement in project management systems bode well given the uncertain macroeconomic conditions.
For the to-be-reported quarter, our model predicts year-over-year sales growth for the Renewables and Agtech segments to be down 15.8% to $93.6 million and 1.2% to $43.7 million, respectively. However, we expect year-over-year sales growth for Residential and Infrastructure segments to increase 4.3% to $224.8 million and 12.1% to $22.8 million, respectively.
Meanwhile, the bottom line of Gibraltar is likely to have been affected year over year by ongoing inflationary pressures, accompanied by increased selling, general, and administrative as well as interest expenses. That said, improving supply chain, material cost reduction, field operations and price cost alignment are likely to have partially offset these headwinds.
For the third quarter, we expect adjusted operating profit and adjusted EBITDA to decline 0.6% to $49 million and 1.2% to $56.5 million, respectively, year over year.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Gibraltar this time around. The company does not have the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — to increase the odds of an earnings beat.
Earnings ESP: ROCK has an Earnings ESP of 0.00%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: ROCK currently sports a Zacks Rank of 1.
Stocks Poised to Beat on Earnings
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 the quarter to be reported.
KBR, Inc. KBR has an Earnings ESP of +6.36% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
KBR’s earnings for the to-be-reported quarter are expected to increase 12.3%. Notably, the company reported better-than-expected earnings in the trailing four quarters, the average surprise being 10.8%.
Louisiana-Pacific Corporation LPX has an Earnings ESP of +2.07% and a Zacks Rank of 3.
LPX is expected to register a 19.2% decline in earnings for the to-be-reported quarter. The company reported better-than-expected earnings in three of the trailing four quarters and missed on the remaining occasion, the average surprise being 95.8%.
Dycom Industries, Inc. DY has an Earnings ESP of +1.24% and a Zacks Rank of 1.
DY’s earnings for the to-be-reported quarter are expected to grow 4.7%. The company reported better-than-expected earnings in the last four quarters, the average surprise being 147.4%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
KBR, Inc. (KBR) : Free Stock Analysis Report
Louisiana-Pacific Corporation (LPX) : Free Stock Analysis Report
Gibraltar Industries, Inc. (ROCK) : Free Stock Analysis Report
Dycom Industries, Inc. (DY) : Free Stock Analysis Report
