As the Q4 earnings season wraps, let’s dig into this quarter’s best and worst performers in the home construction materials industry, including Gibraltar (NASDAQ:ROCK) and its peers.
Traditionally, home construction materials companies have built economic moats with expertise in specialized areas, brand recognition, and strong relationships with contractors. More recently, advances to address labor availability and job site productivity have spurred innovation that is driving incremental demand. However, these companies are at the whim of residential construction volumes, which tend to be cyclical and can be impacted heavily by economic factors such as interest rates. Additionally, the costs of raw materials can be driven by a myriad of worldwide factors and greatly influence the profitability of home construction materials companies.
The 11 home construction materials stocks we track reported a satisfactory Q4. As a group, revenues beat analysts’ consensus estimates by 1.2%.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 7% since the latest earnings results.
Gibraltar (NASDAQ:ROCK)
Gibraltar (NASDAQ:ROCK) makes renewable energy, agriculture technology and infrastructure products. Its mission statement is to make everyday living more sustainable.
Gibraltar reported revenues of $302.1 million, down 8.1% year on year. This print fell short of analysts’ expectations by 1.9%, but it was still a very strong quarter for the company with full-year EPS guidance exceeding analysts’ expectations and an impressive beat of analysts’ EBITDA estimates.
Gibraltar achieved the highest full-year guidance raise of the whole group. Unsurprisingly, the stock is up 14.9% since reporting and currently trades at $66.67.
Is now the time to buy Gibraltar? Access our full analysis of the earnings results here, it’s free.
Best Q4: Owens Corning (NYSE:OC)
Credited with the discovery of fiberglass, Owens Corning (NYSE:OC) supplies building and construction materials to the United States and international markets.
Owens Corning reported revenues of $2.84 billion, up 23.3% year on year, outperforming analysts’ expectations by 2.7%. The business had a stunning quarter with a solid beat of analysts’ organic revenue and EBITDA estimates.
Owens Corning pulled off the fastest revenue growth among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 14.6% since reporting. It currently trades at $141.39.
Is now the time to buy Owens Corning? Access our full analysis of the earnings results here, it’s free.
Weakest Q4: American Woodmark (NASDAQ:AMWD)
Starting as a small millwork shop, American Woodmark (NASDAQ:AMWD) is a cabinet manufacturing company that helps customers from inspiration to installation.
American Woodmark reported revenues of $397.6 million, down 5.8% year on year, falling short of analysts’ expectations by 3.3%. It was a disappointing quarter as it posted full-year EBITDA guidance missing analysts’ expectations.
As expected, the stock is down 14.8% since the results and currently trades at $60.61.
Read our full analysis of American Woodmark’s results here.
Fortune Brands (NYSE:FBIN)
Targeting a wide customer base of residential and commercial customers, Fortune Brands (NYSE:FBIN) makes plumbing, security, and outdoor living products.
Fortune Brands reported revenues of $1.10 billion, down 4.9% year on year. This print lagged analysts' expectations by 3.5%. It was a disappointing quarter as it also logged full-year EPS guidance missing analysts’ expectations.
Fortune Brands had the weakest performance against analyst estimates among its peers. The stock is down 7.9% since reporting and currently trades at $63.60.
Read our full, actionable report on Fortune Brands here, it’s free.
Griffon (NYSE:GFF)
Initially in the defense industry, Griffon (NYSE:GFF) is a now diversified company specializing in home improvement, professional equipment, and building products.
Griffon reported revenues of $632.4 million, down 1.7% year on year. This result missed analysts’ expectations by 0.8%. Zooming out, it was actually a very strong quarter as it logged a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ EPS estimates.
The stock is down 5.6% since reporting and currently trades at $70.14.
Read our full, actionable report on Griffon here, it’s free.
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