Summit Materials, Inc. (NYSE:SUM) is scheduled to report Q3 earnings results after markets close for trading on October 27, 2020.
The company is expected to report earnings of $0.67/share on revenue of $672.6 million. The consensus earnings per share (EPS) of $0.67/share is based on a poll of 14 analysts and represents a growth in eps of 33.2% over the same quarter last year, when the company reported earnings of $0.50/share.
The revenue forecast of $672.6 million based on a poll of 10 analysts implies a year-over-year (YoY) growth in revenue of 1.0%. Last year the company reported $665.8 million in revenue for the quarter.
|Metric||Expected||Prior Year||YoY Change|
Earnings Call Trends
Historically, management has exceeded analyst expectations 3 out of the last 8 tracked quarters, missed 4 quarters, and met expectations 1 quarter.
What are your expectations from Summit Materials, Inc. for earnings this quarter? Let us know in the comments!
In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending June 27, 2020, the stock price did not react much to the update.
|Report Date||Price Day Prior||Price Next Day||Change %||Result|
|July 21, 2020||$17.56||$17.71||0.9%||Increase|
|April 29, 2020||$14.41||$15.11||4.9%||Increase|
|February 5, 2020||$22.78||$24.59||7.9%||Increase|
|October 30, 2019||$23.24||$22.93||−1.3%||Decline|
The other question to consider is one of earnings manipulation. There is a lot of pressure on management each quarter to deliver on earnings expectations. The Beneish M-Score is a statistical model that provides some insight into whether the company might be manipulating earnings. With a Beneish M-Score of −2.88, the model suggests that the company is not likely to be an earnings manipulator. A value of −2.88 implies a 0.2% chance of earnings manipulation.
Fundamentals And Technical Analysis
Summit Materials, Inc. is currently trading at $19.49/share, down −0.1% for the day. The company is trading at approximately 77.3% of its 52-week high of $25.22/share. The company’s stock price is up 10.1% since the last earnings report and up 3.4% over the previous week.
The company’s 14 Day Relative Price Index (RSI) of 66.87 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.
The current share price implies a price-to-earnings (P/E) multiple of 21.49 and a forward P/E multiple of 24.57.
Summit Materials, Inc.’s current share price also implies a price-to-book (P/B) multiple of 1.58. The following table summarizes some other key fundamental ratios:
|Last Reported Fiscal Period Key||FY2020.Q2|
|Period End Date||June 27, 2020|
|Stock Price (Current)||$19.49|
|P/E Ratio (Fwd)||24.6x|
|Total Debt / Total Capital||46.5%|
|Levered Free Cash Flow||$205.3 million|
|EV / EBITDA||8.3x|
Summit Materials, Inc. is a mid-cap stock with a market capitalization of $2.224 billion and a total enterprise value of $3.933 billion. The company operates in the Materials sector and the Construction Materials industry.
Summit Materials, Inc., through its subsidiaries, produces and sells construction materials and related downstream products for the public infrastructure, residential and nonresidential, and other markets. It operates through three segments: West, East, and Cement. The company’s products include aggregates, cement, ready-mix concrete, asphalt paving mixes, and concrete products, as well as plastics components. It also provides paving and related services primarily comprising asphalt paving services to the private and public infrastructure sectors. In addition, the company operates municipal waste, construction, and demolition debris landfills; and liquid asphalt terminal. It has operations in the United States; and British Columbia, Canada. The company was founded in 2009 and is headquartered in Denver, Colorado.