Markets

Orion Group (ORN) to Report Q2 Earnings: What's in Store?

Orion Group Holdings, Inc. ORN is scheduled to report second-quarter 2020 results on Jul 29, after the market closes.

In the last reported quarter, this leading specialty construction company’s top and the bottom line beat the Zacks Consensus Estimate by 4.5% and 214.3%, respectively. Notably, its earnings rebounded from the year-ago loss of 21 cents per share. This upside was backed by strong revenues in marine segment and an improved margin.

Which Way Are Estimates Trending?

The Zacks Consensus Estimate for Orion Group’s second-quarter earnings per share is pegged at a breakeven, implying a decline from the year-ago reported figure of 1 cent. The consensus estimate for revenues stands at $162.13 million, indicating a 2.3% dip from the prior-year reported number.

Orion Group Holdings, Inc. Price and EPS Surprise Orion Group Holdings, Inc. Price and EPS Surprise

Orion Group Holdings, Inc. price-eps-surprise | Orion Group Holdings, Inc. Quote

Factors at Play

Orion Group’s second-quarter results are likely to witness lower revenues due to coronavirus-related project delays, impacts of depressed oil prices and weak demand from short and long-term cruise-line capital expenditures.

Nonetheless, the company has been witnessing increased bid opportunities from energy-related customers in the private sector. Moreover, it has been seeing higher demand in marine construction services owing to its differentiated capabilities and service offering among peers. Also, it has been witnessing long-term demand for concrete construction services in the Texas building sector.

The Zacks Consensus Estimate of $80 million for Marine segment’s revenues indicates a 10.1% decline from the year-ago reported figure. The same for segment’s operating income is currently pegged at $1.6 million, which implies a significant decrease from $9 million reported a year ago.

The consensus mark for the Concrete segment’s revenues presently stands at $69 million, suggesting an 8.4% drop from the year-earlier reported number. The same for operating income is $1.01 million, versus prior-year period’s reported loss of $2.2 million.

Quantitative Model Prediction

Our proven model does not conclusively predict an earnings beat for Orion Group 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 a positive surprise. But that is not the case here as elaborated below.

Earnings ESP: Orion Group has an earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Orion Group currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks Worth a Look

Here are some stocks worth considering in the Zacks Construction sector as our model shows that these have the right combination of elements to beat on earnings in the upcoming releases.

Armstrong World Industries, Inc. AWI has an Earnings ESP of +13.97% and a Zacks Rank #2, currently.

TopBuild Corp. BLD has an Earnings ESP of +29.11% and a Zacks Rank of 1 at present.

Owens Corning OC has an Earnings ESP of +47.78% and a Zacks Rank of 3, presently.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Orion Group Holdings, Inc. (ORN): Free Stock Analysis Report
 
Owens Corning Inc (OC): Free Stock Analysis Report
 
Armstrong World Industries, Inc. (AWI): Free Stock Analysis Report
 
TopBuild Corp. (BLD): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research

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

Other Topics

Stocks

Latest Markets Videos

Zacks

Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

Learn More