Truist Releases Expectations for Q2 2024 Earnings

Charlotte, NC, July 16, 2024-Truist issued the following in expectation of Q2 earnings releases.

“We expect to see a generally weak upcoming earnings season in our group highlighted by (1) weather impacted 2Q24 (which has limited long term impact for materials companies) and (2) weak guidance particularly from renovation markets which have not moved into recovery. We have changed estimates on these trends. Note positive results from single-family home construction suppliers should commence although with a multi-family offsite. Despite all these trends, the realization of a September rate cut (or lack there of) will be the primary factor in near-term stock trading in our coverage as the cycle remains in early innings.

“As we approach the bulk of earnings for 2Q24 and guidance for the remainder of the year, we expect several trends to dominate. (1) Business from single family construction will start to feel the positive impact of starts activity that began in 2023 with momentum building for remainder of the year. However, we also believe business will feel the beginnings of a substantial multi-family contraction as well, providing mixed results. (2) Business from remodel activity will be in-line with consensus in 2Q24, but we believe estimates for 2H24 will be lowered on lack of a substantial turn in business. (3) Outdoor businesses will see a mixed 2Q24 due to heavy rainfall particularly in May and specifically in Texas. (4) Non-residential will remain positive but potentially at a declining rate, in our view, as some sectors feel the brunt of the slowdown.

Growth in single-family housing starts moderated in the second quarter as we started to lap the pickup in construction from 2023. The go forward run rate in single-family we think is now the primary question despite current historically strong numbers. We think this will likely be influenced heavily by Fed actions over the next several quarters. Additionally, multi-family continues to be very weak with little to no signs of immediate reprieve coming.”