According to our earnings preview report, 84.6% of the construction companies have beaten earnings estimates while 76.9% have surpassed top-line expectations in 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 run so far this earnings 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.
Earlier this month, 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).
Next up, four companies from the construction sector, Eagle Materials Inc. (NYSE:EXP) , Dycom Industries Inc. (NYSE:DY) , Empresas ICA, S.A.B. de C.V. (NYSE:ICA) and Advanced Drainage Systems, Inc. (NYSE:WMS) are set to report their quarterly results. Will these companies put up a decent performance as well? Let’s have a look at what might be in store for them.
Eagle Materials Inc. (EXP)
Dallas-based construction materials company, Eagle Materials is set to report fourth quarter and fiscal 2016 results on May 18.
Last quarter, Eagle Materials delivered a negative earnings surprise of 5.15%. The company posted three negative earnings surprises in the past four quarters with an average negative surprise of 11.92%.
The company has an Earnings ESP of 0.00% and a Zacks Rank #3 (Hold). The Zacks Consensus Estimate for the quarter is pegged at 64 cents.
Dycom Industries Inc. (DY)
Based in North America, Dycom is set to report fiscal third quarter 2016 results on May 17. Last quarter, the company delivered a negative earnings surprise of 5.26%. The specialty contracting firm posted three positive earnings surprises in the past four quarters with an average of 22.79%.
The company has an Earnings ESP of 0.00% and a Zacks Rank #3. The Zacks Consensus Estimate for the quarter is pegged at 75 cents.
Empresas ICA, S.A.B. de C.V. (ICA)
Based in Mexico City, Empresas ICA is set to report first quarter 2016 results on May 18.
The company has an Earnings ESP of 0.00% and a Zacks Rank #3. The Zacks Consensus Estimate for the quarter is pegged at 1 cent.
Advanced Drainage Systems, Inc. (WMS)
Ohio based drainage system company, Advanced Drainage Systems is set to report its fiscal fourth quarter 2016 results on May 17.
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.
ADV DRAINAG SYS (WMS): Free Stock Analysis Report
VULCAN MATLS CO (VMC): Free Stock Analysis Report
MARTIN MRT-MATL (MLM): Free Stock Analysis Report
EAGLE MATERIALS (EXP): Free Stock Analysis Report
EMPRESAS ICA (ICA): Free Stock Analysis Report
DYCOM INDS (DY): Free Stock Analysis Report
PULTE GROUP ONC (PHM): Free Stock Analysis Report
LENNAR CORP -A (LEN): Free Stock Analysis Report
KB HOME (KBH): Free Stock Analysis Report
D R HORTON INC (DHI): Free Stock Analysis Report
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