Comfort Systems USA, Inc. FIX is scheduled to report its third-quarter 2024 results on Oct. 24, after market close.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
In the last reported quarter, the company’s earnings and revenues topped the Zacks Consensus Estimate by 20.3% and 9.4%, respectively. On a year-over-year basis, earnings and revenues grew 93.8% and 39.6%, respectively.
The company’s earnings surpassed expectations in each of the last nine quarters.
The Trend in Estimate Revision
The Zacks Consensus Estimate for the third-quarter earnings per share (EPS) has remained stable at $4.05 over the past 60 days. The estimated figure indicates a 47.8% increase from the year-ago EPS of $2.74.
Comfort Systems USA, Inc. Price and EPS Surprise
Comfort Systems USA, Inc. price-eps-surprise | Comfort Systems USA, Inc. Quote
Factors at Play
Comfort Systems is expected to witness EPS growth in the third quarter of 2024, driven by strong demand in the technology and manufacturing sectors. Its Mechanical segment (which accounted for 80.2% of its second-quarter total revenues) and the Electrical segment (19.8% of its total revenues) have been benefiting from solid demand, particularly data centers, chip plants, food, and pharmaceuticals. The company's backlog is strategically aligned with high-demand areas such as data centers, chip fabrication, battery plants, life sciences, and food, positioning FIX to capitalize on sector-specific growth trends.
Acquisitions have also played a crucial role in Comfort Systems’ growth, broadening its operational scope and enhancing revenue streams. The company's focus on strategic investments for improved profitability and efficient service execution, coupled with accretive buyouts, is expected to have driven substantial growth in the third quarter.
Meanwhile, the company’s bottom line is likely to have witnessed solid year-over-year growth in the third quarter thanks to the leverage from increased revenues, operational excellence and capital allocation strategies.
Going forward, Comfort Systems’ strategic moves toward piloting emerging technologies, engaging in partnerships with industry-leading tech firms and data analytics are likely to have sparked its growth momentum in the to-be-reported quarter and beyond.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Comfort Systems this time around. The company does not have the right combination of two key ingredients — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — to increase the odds of an earnings beat.
Earnings ESP: Comfort Systems has an Earnings ESP of 0.00%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: FIX currently carries a Zacks Rank of 3.
Stocks Poised to Beat Earnings
Here are some companies in the Zacks Construction sector, which have the right combination of elements to post an earnings beat in the quarter to be reported.
United Rentals, Inc. URI has an Earnings ESP of +0.51% and carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
URI’s earnings topped the consensus mark in all the last four quarters, with the average being 4.8%. Earnings for the to-be-reported quarter are expected to grow 6.5% year over year.
UFP Industries, Inc. UFPI has an Earnings ESP of +6.24% and carries a Zacks Rank #3.
UFPI’s earnings beat the consensus mark in two of the last four quarters and missed on two occasions, the average surprise being 4.6%. Earnings for the to-be-reported quarter are expected to decline 13.3% year over year.
Howmet Aerospace Inc. HWM has an Earnings ESP of +0.48% and carries a Zacks Rank #2.
HWM’s earnings beat the consensus mark in the last four quarters, the average surprise being 10.9%. Earnings for the to-be-reported quarter are expected to grow 41.3% year over year.
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