Summit Materials, Inc. SUM is scheduled to report first-quarter 2024 results on May 1, after market close.
In the last reported quarter, the company’s earnings and revenues beat the Zacks Consensus Estimate by 14.8% and 8.3%, respectively. On a year-over-year basis, earnings of this aggregates and cement producer decreased 3.1% but revenues rose 19.8%.
Summit Materials’ earnings topped the consensus mark in the last four quarters, the average surprise being 18.9%.
The Trend in Estimate Revision
The Zacks Consensus Estimate for SUM’s first-quarter loss per share is pegged at 23 cents, which moved up a cent from 22 cents in the past seven days. This suggests an improvement of 11.5% from the year-ago quarter’s reported loss of 26 cents.
Summit Materials, Inc. Price and EPS Surprise
Summit Materials, Inc. price-eps-surprise | Summit Materials, Inc. Quote
The consensus estimate for revenues is pegged at $816.49 million, indicating a 100.5% increase from the prior-year quarter’s figure of $407.27 million.
Factors to Note
Summit Materials’ first-quarter revenues and earnings are expected to have improved on the back of strong pricing across all lines of business and accretive acquisitions.
The company is also benefiting from improved footprint, increased scale of business, robust commercial conditions and an improving demand backdrop, which is anticipated to have delivered strong growth and returns in the first quarter.
The consensus estimate suggests Aggregates revenues to increase year over year to $152 million from $144 million. Aggregates pricing is likely to increase to $14.54 per ton, up from $13.44 per ton a year ago. However, analysts expect Aggregates volume to be 12.447 million tons, down from 12.572 million tons reported a year ago.
The consensus estimate for Cement revenues is pegged at $264 million, significantly up from $49.01 million reported a year ago. Cement pricing is also anticipated to rise to $161 per ton from $147 per ton. The same for Cement volume is pegged at 1.019 million tons, notably up from the year-ago figure of 337 million tons.
Within the Products line of business, Ready-mix concrete and Asphalt revenues are currently pegged at $309 million and $26.1 million compared with $139 million and $26.64 million reported a year ago, respectively. Ready-mix concrete and Asphalt pricing per ton is also anticipated to rise to $158 and $89 from $146 and $82, respectively. The same for volume is pegged at 922 million tons and 293 million tons versus the year-ago figure of 951 million tons and 325 million tons, respectively.
The consensus estimate for Services revenues is pegged at $39.54 million, up from $35.1 million reported a year ago.
However, lower volume due to unfavorable weather conditions, persistent inflation, higher transaction and integration costs, as well as increased general and administrative expenses, might have put pressure on the bottom line in the first quarter.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Summit Materials this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.
Currently, SUM has an Earnings ESP of -10.63% and a Zacks Rank #4 (Sell).
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are some companies in the Zacks Construction sector that, according to our model, have the right combination of elements to post an earnings beat in the quarter to be reported.
Dream Finders Homes, Inc. DFH has an Earnings ESP of +7.14% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
DFH’s earnings for the to-be-reported quarter are expected to increase 55.6%. The company reported better-than-expected earnings in all the last four quarters, the average surprise being 144.9%.
Louisiana-Pacific Corporation LPX has an Earnings ESP of +3.56% and a Zacks Rank #1.
LPX’s earnings for the to-be-reported quarter are expected to have increased 232.4% year over year. The company reported better-than-expected earnings in three of the last four quarters and missed on one occasion, the average surprise being 106.2%.
Boise Cascade Company BCC has an Earnings ESP of +0.36% and carries a Zacks Rank of 3.
BCC’s earnings for the to-be-reported quarter are expected to decline 5.4%. The company reported better-than-expected earnings in three of the last four quarters but missed on one occasion, the average surprise being 20.4%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Only $1 to See All Zacks’ Buys and Sells
We’re not kidding.
Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.
Thousands have taken advantage of this opportunity. Thousands did not – they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 228 positions with double- and triple-digit gains in 2023 alone.
Louisiana-Pacific Corporation (LPX) : Free Stock Analysis Report
Boise Cascade, L.L.C. (BCC) : Free Stock Analysis Report
Summit Materials, Inc. (SUM) : Free Stock Analysis Report
Dream Finders Homes, Inc. (DFH) : Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
