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What Awaits North American Construction (NOA) in Q2 Earnings?
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North American Construction Group Ltd. or NACG (NOA - Free Report) is scheduled to release second-quarter 2019 results on Jun 30, after the closing bell.
In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 8.3%.
How are Estimates Faring?
Let’s take a look at the estimate revision trend in order to get a clear picture of what analysts are thinking about the company prior to the earnings release.
For the quarter to be reported, the Zacks Consensus Estimate for earnings per share has remained unchanged at 26 cents over the past 30 days. Notably, the company reported break-even earnings in the year-ago quarter. Revenues are expected to be $122.6 million, up 99.1% from the year-ago reported figure of $61.6 million.
North American Construction Group Ltd. Price and EPS Surprise
NACG is expected to record higher revenues in second-quarter 2019, owing to an increase in mine support services, incremental earthworks and construction activity in core oil sands operations. Fleet acquired in 2018 is expected to provide new work at Fort Hills and Aurora mines and provide significant incremental work at the Millennium Mine. This is likely to be a positive for the upcoming quarterly report. Meanwhile, higher levels of heavy civil construction activity at the Kearl mine are expected to contribute to growth.
Although Nuna Logistics — in which NACG owns a stake — had an uneventful first quarter, seasonal contributions from the same are expected to normalize in the second quarter.
Increased infrastructural spending from federal and provincial governments, large earthwork projects (like P3 projects, flood diversion and road building), along with development and civil earthworks construction for greenfield and expanding sites will likely aid NACG to generate higher revenues.
Here is What Our Quantitative Model Predicts:
Our proven model does not conclusively show that NACG is likely to beat on earnings in the to-be-reported quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: It currently has a Zacks Rank #3, which increases the predictive power of ESP. However, we also need to have a positive ESP to be confident of an earnings surprise.
Meanwhile, we caution against stocks with a Zacks Rank #4 and 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Here are some companies in the Zacks Construction sector, which according to our model have the right combination of elements to post an earnings beat in their respective quarters to be reported.
KBR, Inc. (KBR - Free Report) has an Earnings ESP of +1.16% and holds a Zacks Rank #2.
Rayonier Inc. (RYN - Free Report) has an Earnings ESP of +19.15% and carries a Zacks Rank #3.
Jacobs Engineering Group Inc. has an Earnings ESP of +1.60% and a Zacks Rank #3.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 7 stocks to watch. The report is only available for a limited time.
Image: Bigstock
What Awaits North American Construction (NOA) in Q2 Earnings?
North American Construction Group Ltd. or NACG (NOA - Free Report) is scheduled to release second-quarter 2019 results on Jun 30, after the closing bell.
In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 8.3%.
How are Estimates Faring?
Let’s take a look at the estimate revision trend in order to get a clear picture of what analysts are thinking about the company prior to the earnings release.
For the quarter to be reported, the Zacks Consensus Estimate for earnings per share has remained unchanged at 26 cents over the past 30 days. Notably, the company reported break-even earnings in the year-ago quarter. Revenues are expected to be $122.6 million, up 99.1% from the year-ago reported figure of $61.6 million.
North American Construction Group Ltd. Price and EPS Surprise
North American Construction Group Ltd. price-eps-surprise | North American Construction Group Ltd. Quote
Factors at Play
NACG is expected to record higher revenues in second-quarter 2019, owing to an increase in mine support services, incremental earthworks and construction activity in core oil sands operations. Fleet acquired in 2018 is expected to provide new work at Fort Hills and Aurora mines and provide significant incremental work at the Millennium Mine. This is likely to be a positive for the upcoming quarterly report. Meanwhile, higher levels of heavy civil construction activity at the Kearl mine are expected to contribute to growth.
Although Nuna Logistics — in which NACG owns a stake — had an uneventful first quarter, seasonal contributions from the same are expected to normalize in the second quarter.
Increased infrastructural spending from federal and provincial governments, large earthwork projects (like P3 projects, flood diversion and road building), along with development and civil earthworks construction for greenfield and expanding sites will likely aid NACG to generate higher revenues.
Here is What Our Quantitative Model Predicts:
Our proven model does not conclusively show that NACG is likely to beat on earnings in the to-be-reported quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: It currently has a Zacks Rank #3, which increases the predictive power of ESP. However, we also need to have a positive ESP to be confident of an earnings surprise.
Meanwhile, we caution against stocks with a Zacks Rank #4 and 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks Worth a Look
Here are some companies in the Zacks Construction sector, which according to our model have the right combination of elements to post an earnings beat in their respective quarters to be reported.
KBR, Inc. (KBR - Free Report) has an Earnings ESP of +1.16% and holds a Zacks Rank #2.
Rayonier Inc. (RYN - Free Report) has an Earnings ESP of +19.15% and carries a Zacks Rank #3.
Jacobs Engineering Group Inc. has an Earnings ESP of +1.60% and a Zacks Rank #3.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 7 stocks to watch. The report is only available for a limited time.
See 7 breakthrough stocks now>>