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Construction Stock Earnings on Jan 26: SHW, PHM and LYTS

At the very onset of the Q4 earnings season, 15.4% of the construction companies in the S&P 500 cohort have reported their quarterly numbers. According to the Zacks Earnings Preview report, 50% of the companies have surpassed earnings as well as revenue expectations. Total earnings at these construction companies increased 11.9% on 14.8% higher revenues.

As the U.S. homebuilding market staged a striking comeback in December, it is likely that the housing market may have contributed to economic growth in the fourth quarter. Positives like a healthier economy, improving employment levels, positive consumer confidence and a tight supply situation raise optimism about the sector's performance in 2017.

So far, some of the leading companies in the construction sector have reported their Q4 results. D.R. Horton, Inc. DHI exhibited an impressive performance in the first quarter of fiscal 2017 , with earnings and revenues beating the Zacks Consensus Estimate by 17% and 6.8%, respectively. KB Home KBH reported its fourth-quarter numbers wherein earnings surpassed analysts' expectations by 8.1% and revenues by 2%. Lennar Corporation LEN beat expectations on both the counts for the fourth time in a row in the fiscal fourth quarter of 2016 .

Let us take a look at how these three construction companies are placed ahead of their earnings release on Jan 26.

The Sherwin-Williams CompanySHW , one of largest paint companies in the world, is scheduled to report fourth-quarter 2016 results, before the opening bell.

Last quarter, the company posted a negative earnings surprise of 2.5%. The company has surpassed estimates in two of the past four quarters and has an average positive surprise of 4.36%.

Currently, the company has a Zacks Rank #4 (Sell) and an Earnings ESP of 0.00%. Our proven model does not conclusively show that Sherwin-Williams is likely to beat on earnings this quarter.

Sherwin-Williams Company (The) Price and EPS Surprise

Sherwin-Williams Company (The) Price and EPS Surprise | Sherwin-Williams Company (The) Quote

Per our model, a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat earnings.

For the fourth quarter, the Zacks Consensus Estimate for earnings is pegged at $2.21, up 4.4% year over year. Meanwhile, the consensus estimate for revenues is $2.69 billion, reflecting a 3.2% increase.

Based in Atlanta, GA, PulteGroup Inc.PHM engages in the homebuilding and financial services businesses, primarily in the U.S. It is slated to release fourth-quarter 2016 numbers, before the opening bell.

Last quarter, PulteGroup's earnings were in line with expectations. The company has surpassed estimates in three of the past four quarters, with an average beat of 13.11%.

PulteGroup has a Zacks Rank #3 (Hold) and an Earnings ESP of 0.00% which dims the possibilities of an earnings beat this quarter. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .

PulteGroup, Inc. Price and EPS Surprise

PulteGroup, Inc. Price and EPS Surprise | PulteGroup, Inc. Quote

The Zacks Consensus Estimate for the quarter's earnings is pegged at 58 cents, up 2.3% year over year. The consensus for revenues is at $2.33 billion, implying 13.02% year-over-year growth (read: Can PulteGroup Pull a Surprise this Earnings Season? )

LSI Industries Inc.LYTS , a manufacturer and seller of outdoor, indoor and landscape lighting fixtures, screen printed materials and architectural graphic structures, is slated to report second-quarter fiscal 2017 numbers.

Our proven model does not conclusively show a beat for LSI as it has an Earnings ESP of 0.00% and a Zacks Rank #3. You can see the complete list of today's Zacks #1 Rank stocks here.

LSI Industries Inc. Price and EPS Surprise

LSI Industries Inc. Price and EPS Surprise | LSI Industries Inc. Quote

In the preceding quarter, the company posted a negative earnings surprise of 45.5%. For the second quarter, the Zacks Consensus Estimate for earnings is pegged at 5 cents, reflecting a decline of 66.7% year over year, while the consensus for revenues is at $84.5 million, indicating a 0.22% year-over-year decrease.

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LSI Industries Inc. (LYTS): Free Stock Analysis Report

PulteGroup, Inc. (PHM): Free Stock Analysis Report

Lennar Corporation (LEN): Free Stock Analysis Report

KB Home (KBH): Free Stock Analysis Report

D.R. Horton, Inc. (DHI): Free Stock Analysis Report

Sherwin-Williams Company (The) (SHW): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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