Building products installation services company Installed Building Products (NYSE:IBP) will be announcing earnings results this Thursday before market hours. Here’s what to look for.
Installed Building Products beat analysts’ revenue expectations by 1.5% last quarter, reporting revenues of $684.8 million, down 1.2% year on year. It was a satisfactory quarter for the company, with a solid beat of analysts’ organic revenue estimates but a significant miss of analysts’ EPS estimates.
Is Installed Building Products a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Installed Building Products’s revenue to decline 3.4% year on year to $712.4 million, a reversal from the 6.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.40 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Installed Building Products has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Installed Building Products’s peers in the home builders segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Champion Homes delivered year-on-year revenue growth of 11.7%, beating analysts’ expectations by 9.5%, and TopBuild reported a revenue decline of 5%, in line with consensus estimates.
Read our full analysis of Champion Homes’s results here and TopBuild’s results here.
There has been positive sentiment among investors in the home builders segment, with share prices up 2.1% on average over the last month. Installed Building Products is up 12.4% during the same time and is heading into earnings with an average analyst price target of $185.64 (compared to the current share price of $215.55).
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