Tecnoglass (TGLS) to Report Q1 Earnings: What's in Store?
Tecnoglass, Inc. TGLS is scheduled to report first-quarter 2023 results on May 4, before the opening bell.
In the last reported quarter, the company’s earnings and revenues beat the Zacks Consensus Estimate by 10.1% and 3.4%, respectively. On a year-over-year basis, TGLS, a manufacturer of architectural glass, windows and associated aluminum products’ earnings and revenues increased by 118% and 60.2%, respectively.
Tecnoglass’ earnings topped the consensus mark in all the last 11 quarters.
The Trend in Estimate Revision
The Zacks Consensus Estimate for first-quarter earnings has increased to 92 cents per share from 68 cents in the past 60 days. The estimated figure suggests a 73.6% increase from 53 cents per share reported in the year-ago period. The consensus mark for revenues is pegged at $194.86 million, which calls for 44.8% growth from the prior year’s reported figure.
Tecnoglass Inc. Price and EPS Surprise
Tecnoglass Inc. price-eps-surprise | Tecnoglass Inc. Quote
Factors to Note
Tecnoglass’ first-quarter results are expected to have benefited from continued growth for its products, solid strategic execution and leverage from its vertically integrated business model. Also, the introduction of new products, an expanding customer base and the ongoing ramp-up of the company’s commercial activities are likely to have contributed to the growth.
TGLS has been expanding the single-family business via dealership expansion and geographic diversification, particularly in the high-growth Southeast U.S. region, the Gulf Coast and Texas. These expansion moves are likely to have contributed to the top-line growth in the yet-to-be-reported quarter.
Tecnoglass’ margins are likely to have gained from strong operating leverage on higher sales, pricing dynamics, enhanced working capital management and operating efficiencies on automation initiatives.
However, it has been witnessing industry-wide supply-chain headwinds. The company has also been facing elevated costs due to automation efforts to meet product demand. A rise in variable costs related to marine and ground transportation and commissions is also expected to have been a concern.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Builders FirstSource this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here, as elaborated below.
Currently, it has a Zacks Rank #3 and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks Poised to Beat Estimates
Here are some stocks worth considering from the Zacks Retail-Wholesale space, as our model shows that they have the right combination of elements to beat on earnings this season.
Yum! Brands, Inc. YUM currently has an Earnings ESP of +0.98% and a Zacks Rank #3.
Shares of Yum! Brands have gained 17% in the past year. YUM has a trailing four-quarter negative earnings surprise of 1.1%, on average.
The Wendy's Company WEN currently has an Earnings ESP of +4.48% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
WEN’s earnings beat the consensus mark in three of the last four quarters and missed once. It has a trailing four-quarter earnings surprise of 4.5%, on average. Earnings for the to-be-reported quarter are expected to increase 17.7% year over year.
Shake Shack Inc. SHAK has an Earnings ESP of +2.30% and a Zacks Rank #2.
Shares of Shake Shack have declined 10.1% in the past year. SHAK’s earnings beat the Zacks Consensus Estimate in each of the last four quarters. The company has a trailing four-quarter earnings surprise of 39.8%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Yum! Brands, Inc. (YUM) : Free Stock Analysis Report
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Tecnoglass Inc. (TGLS) : Free Stock Analysis Report
