Earnings results often indicate what direction a company will take in the months ahead. With Q1 now behind us, let’s have a look at Valmont (NYSE:VMI) and its peers.
Traditionally, building materials companies have built competitive advantages with economies of scale, brand recognition, and strong relationships with builders and contractors. More recently, advances to address labor availability and job site productivity have spurred innovation. Additionally, companies in the space that can produce more energy-efficient materials have opportunities to take share. However, these companies are at the whim of 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 building materials companies.
The 7 building materials stocks we track reported a solid Q1; on average, revenues beat analyst consensus estimates by 1.3%. while next quarter's revenue guidance was in line with consensus. Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good end of 2023. But the beginning of 2024 has seen more volatile stock performance due to mixed inflation data, but building materials stocks have performed well, with the share prices up 11.8% on average since the previous earnings results.
Valmont (NYSE:VMI) Valmont Industries, Inc. (NYSE: VMI) is a diversified manufacturer of products and services for infrastructure and agriculture markets.
Valmont reported revenues of $977.8 million, down 8% year on year, in line with analysts' expectations. Overall, it was a decent quarter for the company with an impressive beat of analysts' earnings estimates.
President and Chief Executive Officer Avner M. Applbaum commented, “We are pleased to have achieved strong quarterly results that reflect our team’s focus on execution and commitment to enhancing shareholder value. We meaningfully expanded margins year-over-year on lower sales through successful commercial execution, improved operational efficiencies in our facilities, and reduced SG&A expenses due to structural cost improvement actions taken in late 2023.”
The stock is up 36.6% since reporting and currently trades at $283.40.
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Best Q1: Carlisle (NYSE:CSL) Originally founded as Carlisle Tire and Rubber Company, Carlisle (NYSE:CSL) is a multi-industry product manufacturer focusing on construction materials and weatherproofing technologies.
Carlisle reported revenues of $1.10 billion, up 22.8% year on year, outperforming analysts' expectations by 10.1%. It was an incredible quarter for the company with an impressive beat of analysts' organic revenue and earnings estimates.
Carlisle achieved the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 15.2% since reporting. It currently trades at $440.08.
Weakest Q1: UFP (NASDAQ:UFPI) UFP Industries, Inc. (NASDAQ: UFPI) is a holding company with subsidiaries throughout North America, Europe, Asia, and Australia.
UFP reported revenues of $1.64 billion, down 10.1% year on year, falling short of analysts' expectations by 4.7%. It was a weak quarter for the company with a miss of analysts' volume estimates.
UFP had the weakest performance against analyst estimates and slowest revenue growth in the group. Interestingly, the stock is up 8.6% since the results and currently trades at $125.69.
Armstrong World (NYSE:AWI) Started as a two-man shop dating back to the 1860s, Armstrong (NYSE:AWI) provides ceiling and wall products to commercial and residential spaces.
Armstrong World reported revenues of $326.3 million, up 5.2% year on year, surpassing analysts' expectations by 2.1%. Taking a step back, it was an impressive quarter for the company with full-year revenue guidance exceeding analysts' expectations and a solid beat of analysts' organic revenue estimates.
Armstrong World achieved the highest full-year guidance raise among its peers. The stock is up 4% since reporting and currently trades at $123.62.
Resideo (NYSE:REZI) Resideo Technologies, Inc. (NYSE: REZI) is a manufacturer and distributor of technology-driven products and solutions for home comfort, energy management, water management, and safety and security.
Resideo reported revenues of $1.49 billion, down 4.1% year on year, in line with analysts' expectations. Taking a step back, it was a solid quarter for the company with an impressive beat of analysts' earnings estimates.
The stock is up 11% since reporting and currently trades at $21.90.
This content was originally published on Stock Story
