Of the construction companies in the S&P 500 index, 92.3% have already reported their results. According to our earnings preview report only 33.3% of construction companies surpassed earnings estimates and 33.3% came ahead of revenue expectations. Total earnings of these construction companies increased 9.5% on 6.2% increase in revenues.
Positives like a healthier economy, improving employment levels, low interest rates, positive consumer confidence and a tight supply situation raise optimism about the sector’s performance in the second half. In addition to home construction, the home remodeling market has also picked up pace. Improved construction and remodeling activity have increased demand for home furnishing products.
Last week, one of the leading home furnishing product companies, Mohawk Industries, Inc.’s (NYSE:MHK) adjusted earnings of $3.47 per share beat the Zacks Consensus Estimate by 3.27% and rose 29% year over year backed by strong operating margins. Earnings also came above the company’s guidance.
Next up, two home furnishing product companies are scheduled to report their quarterly results on Aug 10. Let us look at how these companies are placed ahead of their releases.
Masonite International Corporation (NYSE:DOOR)
Masonite is set to report second-quarter fiscal 2016 results after market close.
Last quarter, Masonite posted a positive surprise of 35.71%. Masonite has surpassed estimates in three of the past four quarters, resulting in an average positive surprise of 26.66%.
It has an Earnings ESP of -3.37% and a Zacks Rank #3 (Hold). The Zacks Consensus Estimate for the quarter is pegged at 89 cents.
Crown Crafts, Inc. (NASDAQ:CRWS)
Crown Crafts is set to report first-quarter fiscal 2017 results before market opens tomorrow.
Last quarter, Crown Crafts posted a negative earnings surprise of 4.35%. However, the company has delivered positive earnings surprises in two of the last four quarters with an average positive surprise of 8.49%.
However, Crown Crafts has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell). The Zacks Consensus Estimate for the quarter is pegged at 9 cents.
Conclusion
With the rise in demand for homes, remodeling activities and an improving job market in 2016, home furnishing product companies such as the ones discussed above are expected to witness strong demand for their products.
MASONITE INT CP (DOOR): Free Stock Analysis Report
MOHAWK INDS INC (MHK): Free Stock Analysis Report
CROWN CRAFTS (CRWS): Free Stock Analysis Report
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Zacks Investment Research