Building products installation services company Installed Building Products (NYSE:IBP) will be reporting results tomorrow morning. Here’s what investors should know.
Installed Building Products met analysts’ revenue expectations last quarter, reporting revenues of $737.6 million, up 6.6% year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ operating margin estimates but a miss of analysts’ organic revenue 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 grow 7.2% year on year to $757.2 million, a reversal from the 1.8% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.98 per share.
Analysts covering the company have generally 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 twice over the last two years.
Looking at Installed Building Products’s peers in the home builders segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Skyline Champion delivered year-on-year revenue growth of 32.9%, meeting analysts’ expectations, and Taylor Morrison Home reported revenues up 26.6%, topping estimates by 7.8%. Skyline Champion traded down 1.7% following the results while Taylor Morrison Home was up 5.4%.
Read our full analysis of Skyline Champion’s results here and Taylor Morrison Home’s results here.
There has been positive sentiment among investors in the home builders segment, with share prices up 2.7% on average over the last month. Installed Building Products is down 3.5% during the same time and is heading into earnings with an average analyst price target of $251.90 (compared to the current share price of $232.55).
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