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Here's What to Expect From Encore Wire (WIRE) in Q1 Earnings

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Encore Wire Corporation is scheduled to release first-quarter 2023 results on Apr 25, after market close.

The Zacks Consensus Estimate for the company’s first-quarter earnings has remained steady in the past 60 days. However, WIRE has an impressive earnings surprise history, having outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 147%.

Let’s see how things have shaped up for Encore Wire this earnings season.

Encore Wire Corporation Price and EPS Surprise

Encore Wire Corporation Price and EPS Surprise

Encore Wire Corporation price-eps-surprise | Encore Wire Corporation Quote

Factors to Note

Higher volumes and an increase in aluminum spreads are likely to have aided WIRE’s first-quarter performance. Increased aluminum and copper unit volumes are expected to have driven the company’s top line in the to-be-reported quarter.

The deceleration in raw material prices is expected to have supported the bottom-line performance. Improved supply chains are also expected to have aided performance.

However, a decrease in copper spreads due to lower prices might have affected Encore Wire’s fourth-quarter performance.

Earnings Whispers

The proven Zacks model does not conclusively predict an earnings beat for Encore Wire this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is not the case here. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

Earnings ESP: The Earnings ESP for Encore Wire is 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $5.44.

Zacks Rank: Encore Wire currently carries a Zacks Rank #3.

Highlights of Q4 Earnings

In fourth-quarter 2022, Encore Wire reported earnings of $8.28 per share, which surpassed the Zacks Consensus Estimate of $4.61. The bottom line jumped 19.8% year over year, while the top line inched up approximately 1%.

Stocks to Consider

Here are some companies within the broader Industrial Products sector that you may want to consider, as according to our model, these have the right combination of elements to beat on earnings this reporting cycle.

A. O. Smith (AOS - Free Report) has an Earnings ESP of +10.19% and a Zacks Rank #3. The company is scheduled to release first-quarter 2023 results on Apr 27. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for A. O. Smith’s first-quarter earnings has been revised upward by a penny in the past 60 days. The company pulled off a trailing four-quarter earnings surprise of 3.2%, on average.

Graco Inc. (GGG - Free Report) has an Earnings ESP of +2.44% and a Zacks Rank #3. The company is slated to release first-quarter 2023 results on Apr 26.

The Zacks Consensus Estimate for Graco’s first-quarter earnings has remained steady in the past 60 days. The company delivered a trailing four-quarter earnings surprise of 0.2%, on average.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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