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What Awaits North American Construction (NOA) in Q1 Earnings?

North American Construction Group Ltd. or NACG NOA, is scheduled to report first-quarter 2023 results on Apr 26, after market close.

In the last reported quarter, NOA’s earnings and revenues beat the Zacks Consensus Estimate by 72.3% and 18.5%, respectively.

The company’s earnings topped the consensus mark in 9 of the 12 trailing quarters.

Trend in Estimate Revision

For the quarter to be reported, the Zacks Consensus Estimate for earnings per share has increased to 60 cents from 55 cents in the past seven days. The estimated figure indicates a 50% rise from the year-ago quarter’s level of 40 cents. The consensus mark for net sales is pegged at $166.89 million, suggesting 19.6% growth from the year-ago reported figure.

North American Construction Group Ltd. Price and EPS Surprise

North American Construction Group Ltd. price-eps-surprise | North American Construction Group Ltd. Quote

Key Factors to Note

This premier provider of mining and heavy construction services is expected to have witnessed higher earnings and revenues in the first quarter of 2023. The company’s plans to integrate new technology into the equipment, focus on equipment utilization and all the correlated initiatives that support its heavy equipment fleet are likely to have added to its performance.

NACG expects a strong first quarter as inflation fluctuations have eased. It is likely to have benefited from high equipment demand and stronger-for-longer commodity markets.

This apart, the company’s prudent in-organic moves, like acquisitions and joint ventures and operational improvement strategies are likely to have offset the increased inflationary pressure and supply chain headwinds in the to-be-reported quarter.

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for NACG this time around. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is not the case here, as elaborated below.

Earnings ESP: NACG has an Earnings ESP of -2.52%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Currently, the company carries a Zacks Rank #3 (Hold).

Stocks With the Favorable Combination

Here are some companies in the Zacks Construction sector that, according to our model, have the right combination of elements to beat on earnings in their respective quarters to be reported.

Headquartered in Stamford, CT, United Rentals, Inc. URI, the largest equipment rental company in the world, beat on earnings in three of the trailing four quarters and missed on the same on one occasion, the average surprise being 6.9%.

URI has an Earnings ESP of +4.51% and a Zacks Rank #3 at present.

Headquartered in Toledo, OH, Owens Corning OC, a world leader in building materials systems and composite solutions, surpassed earnings in two of the trailing four quarters, met on one occasion and missed on one occasion, the average being 4.4%.

Owens Corning currently has an Earnings ESP of +3.18% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Based in Winchester, VA, Trex Company, Inc. TREX — which manufactures and distributes decking, railing, and outdoor living products and accessories — beat on earnings in three of the trailing four quarters and missed on the same on a single occasion, the average surprise being 7.2%.

Trex has an Earnings ESP of +11.34% and a Zacks Rank of #3 at present.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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United Rentals, Inc. (URI) : Free Stock Analysis Report

Owens Corning Inc (OC) : Free Stock Analysis Report

Trex Company, Inc. (TREX) : Free Stock Analysis Report

North American Construction Group Ltd. (NOA) : Free Stock Analysis Report

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