Building products installation services company Installed Building Products (NYSE:IBP) will be announcing earnings results tomorrow before the bell. Here’s what investors should know.

Installed Building Products met analysts’ revenue expectations last quarter, reporting revenues of $760.6 million, up 7.7% year on year. It was a mixed quarter for the company, with a solid beat of analysts’ adjusted operating income estimates but a miss of analysts’ EPS 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 5.8% year on year to $762.6 million, in line with the 5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.85 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 four times over the last two years.

Looking at Installed Building Products’s peers in the home builders segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Champion Homes delivered year-on-year revenue growth of 15.3%, beating analysts’ expectations by 9.2%, and Taylor Morrison Home reported revenues up 16.7%, topping estimates by 9.5%. Champion Homes traded up 13.5% following the results while Taylor Morrison Home was also up 2.6%.

Read our full analysis of Champion Homes’s results here and Taylor Morrison Home’s results here.

Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market has been optimistic as of late due to a soft landing. This is an economic situation where rate hikes successfully quelled inflation but did not send the economy into a recession. Furthermore, recent rate cuts and Donald Trump's triumph in the 2024 Presidential election have been tailwinds for the market, and while some of the home builders stocks have shown solid performance, the group has generally underperformed, with share prices down 5.6% on average over the last month. Installed Building Products is down 13.1% during the same time and is heading into earnings with an average analyst price target of $231 (compared to the current share price of $172).

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