Tecnoglass (TGLS) to Report Q1 Earnings: What's in Store?

Tecnoglass, Inc. TGLS is scheduled to report first-quarter 2022 results on May 4, before the opening bell.

In the last reported quarter, the company’s earnings and revenues beat the Zacks Consensus Estimate by 31.6% and 2.2%, respectively. On a year-over-year basis, earnings and revenues of this manufacturer of architectural glass, windows, and associated aluminum products increased 138.1% and 28%, respectively.

Tecnoglass’ earnings topped the consensus mark in all the last four quarters, with the average being 39.9%.

Trend in Estimate Revision

The Zacks Consensus Estimate for first-quarter earnings has been revised upward to 47 cents per share from 41 cents over the past 60 days. The estimated figure suggests a 34.3% increase from 35 cents per share reported in the year-ago period. The consensus mark for revenues is pegged at $132 million, which calls for 19.1% growth from the prior-year reported figure.

Tecnoglass Inc. Price and EPS Surprise

Tecnoglass Inc. price-eps-surprise | Tecnoglass Inc. Quote

Factors to Note

Strong growth in single-family residential activity and market share gains, the introduction of new products, an expanding customer base and robust housing demand have been benefiting Tecnoglass.

Tecnoglass’ first-quarter results are expected to gain from single-family residential activities and a wide array of commercial projects. Precisely, revenues from the United States, accounting for 94.5% of total revenues, have been benefiting from robust demand for the company’s products and services in the United States, given solid momentum in the U.S. single-family residential business, market share gains as well as attractive commercial and multifamily projects. Yet, Latin America’s revenues (majority of which is represented by long-term contracts priced in Colombian Pesos but indexed to the U.S. dollar) have been witnessing the adverse impact of changes in foreign currency exchange rates on Colombia and total revenues.

Prestige and Elite product lines are likely to have been the key growth drivers for the single-family business. The company’s Multimax product line is also expected to have contributed to first-quarter sales. Tecnoglass has been making efforts to expand the single-family business via dealership expansion and geographic diversification, particularly in the high-growth Southeast U.S. region, the Gulf Coast and Texas.

Meanwhile, Tecnoglass has been reeling under industry-wide supply headwinds. The company has also been facing elevated costs as a result of automation efforts to meet product demand. A rise in variable costs related to marine and ground transportation and commissions is also expected to have been a concern.

What the Zacks Model Predicts

Our proven model does not conclusively predict an earnings beat for Tecnoglass this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Tecnoglass currently has a Zacks Rank #1 and an Earnings ESP of 0.00%. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks Poised to Beat Earnings Estimates

Here are some stocks from the Zacks Retail-Wholesale space that investors may consider, as our model shows that these also have the right combination of elements to post an earnings beat :

Costco Wholesale Corporation COST has an Earnings ESP of +1.39% and a Zacks Rank #2.

Shares of Costco Wholesale have gained 40.2% in the past year. COST’s earnings topped the consensus mark in each of the trailing four quarters. The company has a trailing four-quarter earnings surprise of 13.3%, on average.

Shake Shack Inc. SHAK has an Earnings ESP of +6.85% and a Zacks Rank #3.

Shares of Shake Shack have declined 19.9% so far this year. SHAK’s earnings beat the consensus mark in each of the last four quarters. The company has a trailing four-quarter earnings surprise of 89.2%, on average.

Designer Brands Inc. DBI has an Earnings ESP of +4.55% and a Zacks Rank #3.

Shares of Designer Brands have declined 25.8% in the past year. DBI’s earnings topped the consensus mark in each of the trailing four quarters. The company has a trailing four-quarter earnings surprise of 112.8%, on average.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.