We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Construction Stock Q3 Earnings Lineup for Nov 14: ACM, EFOI
Read MoreHide Full Article
The Q3 earnings cycle is drawing to a close. According to our latest Earnings Outlook, 91.1% of the S&P 500 companies have released their quarterly numbers. Reported results reveal a 4% increase in third-quarter earnings on 2.7% growth in revenues.
For the construction sector, 92.3% companies have reported their Q3 results wherein total earnings increased 7.6% on 8.2% higher 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 second-half performance. Further, a strong home remodeling market along with solid job data and rising consumer confidence are doing the trick for these stocks.
Recently, D.R. Horton, Inc. (DHI - Free Report) exhibited a mixed performance in the fourth quarter of fiscal 2016 with earnings missing the Zacks Consensus Estimate and sales surpassing the same. Shares declined 5.52% in pre-market trading following the release. However, the TX-based homebuilder’s order trends remained strong in the quarter.
Again, Martin Marietta Materials, Inc.'s (MLM - Free Report) third-quarter 2016 adjusted earnings per share of $2.49 missed the Zacks Consensus Estimate of $2.64 by about 5.7%. However, earnings rose 43% from the prior-year quarter.
Let us take a look at how these two construction stocks are placed ahead of their earnings releases on Nov 14.
AECOM (ACM - Free Report) AECOM specializes in providing integrated services for planning, construction and maintenance of infrastructure that includes consulting, architecture, engineering as well as managing the requirements for energy, water and environment for private and public clients. Its Construction services business has been doing well on the back of bountiful opportunities in the building construction market.
AECOM is currently eyeing multiple investment options in key end markets that look promising for each of its business segments. In the U.S., nine states have approved laws to enable design build in the infrastructure market, unlocking fresh opportunities for the company.
This apart, we believe solid business bonds with project developers and foreign direct investment partners are opening up multiple opportunities for AECOM in new markets. The company ended third-quarter fiscal 2016 with over $38 billion in backlog, which is a key indicator of future revenue growth.
Per our model, a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat earnings.
AECOM has a Zacks Rank #3 which increases the predictive power of ESP. However, the company’s 0.00% ESP makes surprise prediction difficult.
The company reported positive earnings surprise of 14.08% in last quarter. In fact, AECOM has posted positive earnings surprises in three of the past four quarters with an average beat of 10.83%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
For the third quarter, the Zacks Consensus Estimate for earnings is pegged at 73 cents, reflecting a decline of 22.6% year over year, while the consensus for revenues is at $4.68 billion, indicating a 0.9% year-over-year decrease.
Energy Focus, Inc. (EFOI - Free Report) is a leading provider and innovator of energy efficient LED lighting products.
Our proven model does not conclusively show a beat for Energy Focus as it has a combination of an Earnings ESP of 0.00% (Most Accurate estimate and Zacks Consensus Estimate at a loss of 25 cents) and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here..
In the preceding quarter, the company posted a huge negative earnings surprise of 325.0%. The company has an average negative surprise of 25.67% for the trailing four quarters.
For the third quarter, the Zacks Consensus Estimate for loss is pegged at 25 cents, reflecting a 160.4% wider figure on a year-over-year basis, while the consensus for revenues is at $8.58 million, indicating a 53.2% year-over-year decline.
This week, Zacks researchers have named 7 other stocks that look to break out even sooner than today's Bull of the Day. You can see these time-sensitive tickers free, and access additional trades that are not available to the public. Simply click here>>
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report predicting the 7 stocks that will soar highest in the coming month.
Image: Bigstock
Construction Stock Q3 Earnings Lineup for Nov 14: ACM, EFOI
The Q3 earnings cycle is drawing to a close. According to our latest Earnings Outlook, 91.1% of the S&P 500 companies have released their quarterly numbers. Reported results reveal a 4% increase in third-quarter earnings on 2.7% growth in revenues.
For the construction sector, 92.3% companies have reported their Q3 results wherein total earnings increased 7.6% on 8.2% higher 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 second-half performance. Further, a strong home remodeling market along with solid job data and rising consumer confidence are doing the trick for these stocks.
Recently, D.R. Horton, Inc. (DHI - Free Report) exhibited a mixed performance in the fourth quarter of fiscal 2016 with earnings missing the Zacks Consensus Estimate and sales surpassing the same. Shares declined 5.52% in pre-market trading following the release. However, the TX-based homebuilder’s order trends remained strong in the quarter.
Again, Martin Marietta Materials, Inc.'s (MLM - Free Report) third-quarter 2016 adjusted earnings per share of $2.49 missed the Zacks Consensus Estimate of $2.64 by about 5.7%. However, earnings rose 43% from the prior-year quarter.
Let us take a look at how these two construction stocks are placed ahead of their earnings releases on Nov 14.
AECOM (ACM - Free Report) AECOM specializes in providing integrated services for planning, construction and maintenance of infrastructure that includes consulting, architecture, engineering as well as managing the requirements for energy, water and environment for private and public clients. Its Construction services business has been doing well on the back of bountiful opportunities in the building construction market.
AECOM is currently eyeing multiple investment options in key end markets that look promising for each of its business segments. In the U.S., nine states have approved laws to enable design build in the infrastructure market, unlocking fresh opportunities for the company.
This apart, we believe solid business bonds with project developers and foreign direct investment partners are opening up multiple opportunities for AECOM in new markets. The company ended third-quarter fiscal 2016 with over $38 billion in backlog, which is a key indicator of future revenue growth.
Per our model, a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat earnings.
AECOM has a Zacks Rank #3 which increases the predictive power of ESP. However, the company’s 0.00% ESP makes surprise prediction difficult.
The company reported positive earnings surprise of 14.08% in last quarter. In fact, AECOM has posted positive earnings surprises in three of the past four quarters with an average beat of 10.83%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
For the third quarter, the Zacks Consensus Estimate for earnings is pegged at 73 cents, reflecting a decline of 22.6% year over year, while the consensus for revenues is at $4.68 billion, indicating a 0.9% year-over-year decrease.
AECOM Price and EPS Surprise
AECOM Price and EPS Surprise | AECOM Quote
Energy Focus, Inc. (EFOI - Free Report) is a leading provider and innovator of energy efficient LED lighting products.
Our proven model does not conclusively show a beat for Energy Focus as it has a combination of an Earnings ESP of 0.00% (Most Accurate estimate and Zacks Consensus Estimate at a loss of 25 cents) and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here..
In the preceding quarter, the company posted a huge negative earnings surprise of 325.0%. The company has an average negative surprise of 25.67% for the trailing four quarters.
For the third quarter, the Zacks Consensus Estimate for loss is pegged at 25 cents, reflecting a 160.4% wider figure on a year-over-year basis, while the consensus for revenues is at $8.58 million, indicating a 53.2% year-over-year decline.
ENERGY FOCUS IN Price and EPS Surprise
ENERGY FOCUS IN Price and EPS Surprise | ENERGY FOCUS IN Quote
Confidential from Zacks
This week, Zacks researchers have named 7 other stocks that look to break out even sooner than today's Bull of the Day. You can see these time-sensitive tickers free, and access additional trades that are not available to the public. Simply click here>>