Installed Building (IBP) to Post Q4 Earnings: What to Expect?
Installed Building Products, Inc. IBP is scheduled to report fourth-quarter 2023 results on Feb 22, before the opening bell.
In the last reported quarter, the company’s earnings topped the Zacks Consensus Estimate by 15.9% and increased 11.2% on a year-over-year basis. Net sales missed the consensus mark by 1.6% and decreased 1.8% from the prior-year level.
Notably, the company’s earnings surpassed expectations in three of the trailing four quarters and missed on one occasion, the average surprise being 7.3%.
The Trend in Estimate Revision
The Zacks Consensus Estimate for IBP’s fourth-quarter earnings per share (EPS) remained unchanged at $2.53 in the past 60 days. The estimated figure reflects 4.1% growth from $2.43 per share from the year-ago quarter.
Installed Building Products, Inc. Price and EPS Surprise
Installed Building Products, Inc. price-eps-surprise | Installed Building Products, Inc. Quote
The consensus estimate for net sales is pegged at $689.29 million, indicating a 0.4% increase from the prior-year quarter’s figure of $686.49 million.
Factors to Note
Installed Building’s earnings and net sales in fourth-quarter 2023 are likely to have increased year over year on the back of improving residential and commercial end markets as well as accretive buyouts. Also, its national scale and diverse product categories are added positives. These tailwinds are likely to have aided its fourth-quarter results to some extent.
This apart, the company has a main emphasis on service value over volume, which might have helped it to achieve a strong margin and adjusted EBITDA in the to-be-reported quarter.
However, Installed Building expects interest rate volatility to impact the housing industry's cyclicality and thereby, its fourth-quarter results. Also, higher costs and expenses related to acquisitions and operations are likely to have pressed margins to some extent.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Installed Building 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: IBP has an Earnings ESP of 0.00%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Peer Releases
Owens Corning OC reported better-than-expected results for fourth-quarter 2023. Both earnings and net sales surpassed the Zacks Consensus Estimate and increased on a year-over-year basis.
Impressively, Owens Corning has updated the long-term EBIT margin expectation for its Roofing segment to mid-20% on average from approximately 20%.
Masco Corporation MAS reported better-than-expected results for fourth-quarter 2023. Both the top and bottom lines surpassed the Zacks Consensus Estimate and increased from the prior year. Strong pricing actions and operational efficiency helped deliver solid results.
Despite facing challenges in end markets and experiencing lower volume, Masco achieved 2% growth in adjusted EPS in 2023. Looking forward to 2024, Masco anticipates that sales will remain relatively unchanged throughout the year, reflecting a market that is expected to be flat to slightly declining in the low single digits.
Otis Worldwide Corporation OTIS reported impressive results in the fourth quarter of 2023. Its earnings and net sales surpassed the Zacks Consensus Estimate and increased on a year-over-year basis.
OTIS’ quarterly results indicated 13 consecutive quarters of organic sales growth. The results were marked by mid-teens growth in adjusted EPS, the third consecutive quarter of high-single-digit organic sales growth in the Service segment, and a resurgence in New Equipment orders growth. Full-year 2023 also registered a notable mid-single-digit increase in organic sales, an expansion in operating profit margin, and a robust low-teens growth in adjusted EPS.
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