Installed Building Products, Inc. IBP is all set to release its fourth-quarter 2023 results on Feb 22, ahead of the trading day.
During the previous quarter, IBP’s earnings outperformed the Zacks Consensus Estimate by 15.9% and climbed 11.2% year over year. Although net sales fell short of the consensus mark by 1.6%, they decreased by 1.8% compared to the previous year.
Interestingly, IBP’s earnings exceeded expectations in three of the last four quarters and fell short once, with an average surprise of 7.3%.
Estimate Revision Trends
The Zacks Consensus Estimate for IBP’s fourth-quarter earnings per share (EPS) remained steady at $2.53 over the past 60 days, reflecting a 4.1% increase from the year-ago quarter’s $2.43 per share.
Analysis of Price and EPS Surprise
Installed Building Products, Inc. price-eps-surprise | Installed Building Products, Inc. Quote
The consensus estimate for net sales is set at $689.29 million, indicating a 0.4% rise from the figure of $686.49 million reported in the prior-year quarter.
Factors to Consider
In the fourth quarter of 2023, Installed Building’s earnings and net sales are anticipated to have grown compared to the same period last year, driven by improvements in residential and commercial end markets as well as advantageous acquisitions. Furthermore, its national scale and diverse product categories have provided additional support. These factors are likely to have contributed to its Q4 results to some extent.
Additionally, the company’s predominant focus on offering value through service instead of volume may have contributed to achieving a robust margin and adjusted EBITDA in the upcoming quarter.
However, Installed Building is cautious about the impact of interest rate fluctuations on the cyclical nature of the housing industry and, consequently, its fourth-quarter results. Furthermore, increased costs and expenses related to acquisitions and operations may have applied pressure on margins.
Zacks Model Prediction
Our proven model does not conclusively indicate that Installed Building will beat earnings expectations this time. The company lacks the essential combination of two key ingredients—a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold)—to enhance the likelihood of an earnings beat.
Earnings ESP: IBP’s Earnings ESP stands at 0.00%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently holds a Zacks Rank of 3. You can refer to the complete list of today’s Zacks #1 Rank stocks here.
Performance of Peers
Owens Corning OC reported impressive results for the fourth quarter of 2023, with both earnings and net sales exceeding the Zacks Consensus Estimate and increasing year over year.
Notably, Owens Corning has revised the long-term EBIT margin anticipation for its Roofing segment to an average of mid-20% from approximately 20%.
Masco Corporation MAS also reported strong results for fourth-quarter 2023, surpassing both the top and bottom line estimates and registering year-over-year growth. The company’s robust pricing strategies and operational efficiency contributed to these impressive results.
Despite market challenges and a decrease in volume, Masco achieved a 2% growth in adjusted EPS in 2023. Looking ahead to 2024, Masco expects sales to remain relatively stable over the year, reflecting a market that is anticipated to either remain unchanged or marginally decline in the low single digits.
Otis Worldwide Corporation OTIS delivered outstanding results in the fourth quarter of 2023, where its earnings and net sales surpassed the Zacks Consensus Estimate and showed year-over-year growth.
OTIS’ quarterly outcomes revealed 13 consecutive quarters of organic sales expansion. The period was highlighted by a mid-teens rise in adjusted EPS, marking the third consecutive quarter with high-single-digit organic sales growth in the Service segment, and a resurgence in New Equipment orders growth. Full-year 2023 also saw a considerable mid-single-digit surge in organic sales, an expansion in operating profit margin, and a robust low-teens growth in adjusted EPS.
Stay informed about upcoming earnings announcements with the Zacks Earnings Calendar.
Just Released: Zacks Top 10 Stocks for 2024
Don’t Miss Out – you still have the opportunity to be among the first to explore our 10 top picks for 2024. Cherry-picked by Zacks Director of Research, Sheraz Mian, this portfolio has exhibited consistent and remarkable success. From its commencement in 2012 until November 2023, the Zacks Top 10 Stocks witnessed a remarkable gain of +974.1%, almost tripling the S&P 500’s +340.1%. Sheraz has combed through the 4,400 companies evaluated by the Zacks Rank and handpicked the top 10 stocks to purchase and hold onto in 2024. You can still be one of the first to discover these newly-released stocks with substantial potential.
Masco Corporation (MAS) : Free Stock Analysis Report
Owens Corning Inc (OC) : Free Stock Analysis Report
Installed Building Products, Inc. (IBP) : Free Stock Analysis Report
Otis Worldwide Corporation (OTIS) : Free Stock Analysis Report
Read this article on Zacks.com by clicking here
The perspectives and opinions expressed in this article belong to the author and do not necessarily represent those of Nasdaq, Inc.
