Building products installation services company Installed Building Products (NYSE: IBP) will be reporting earnings this Thursday before market open. Here’s what investors should know.
Installed Building Products missed analysts’ revenue expectations last quarter, reporting revenues of $660.5 million, down 3.5% year on year. It was a disappointing quarter for the company, with a significant miss of analysts’ EBITDA estimates and 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 for active Edge members.
This quarter, the market is expecting Installed Building Products’s revenue to decline 2% year on year, a reversal from the 3.1% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Installed Building Products has missed Wall Street’s revenue estimates multiple 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. LGI Homes delivered year-on-year revenue growth of 3.7%, beating analysts’ expectations by 2.9%, and PulteGroup reported a revenue decline of 9.6%, topping estimates by 1.1%. PulteGroup’s stock price was unchanged following the results.
Read our full analysis of LGI Homes’s results here and PulteGroup’s results here.
Investors in the home builders segment have had steady hands going into earnings, with share prices flat over the last month. Installed Building Products is up 5.4% during the same time and is heading into earnings with an average analyst price target of $233.27 (compared to the current share price of $237.86).
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