The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Apogee (NASDAQ:APOG) and the rest of the commercial building products stocks fared in Q2.
Commercial building products companies, which often serve more complicated projects, can supplement their core business with higher-margin installation and consulting services revenues. 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 commercial 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 commercial building products companies.
The 4 commercial building products stocks we track reported a slower Q2; on average, revenues missed analyst consensus estimates by 2.5%. Stocks--especially those trading at higher multiples--had a strong end of 2023, but 2024 has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts, and while some of the commercial building products stocks have fared somewhat better than others, they collectively declined, with share prices falling 4.1% on average since the previous earnings results.
Best Q2: Apogee (NASDAQ:APOG) Involved in the design of the Apple (NASDAQ:AAPL) Store on Fifth Avenue in New York City, Apogee (NASDAQ:APOG) sells architectural products and services such as high-performance glass for commercial buildings.
Apogee reported revenues of $331.5 million, down 8.3% year on year, in line with analysts' expectations. Overall, it was a strong quarter for the company with an impressive beat of analysts' earnings estimates.
“Our team continued to drive operational execution across the business, delivering significant operating income growth and record adjusted EPS, despite continued volume pressure,” said Ty R. Silberhorn, Chief Executive Officer.
Apogee delivered the slowest revenue growth of the whole group. The stock is up 9.1% since reporting and currently trades at $64.53.
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Janus (NYSE:JBI) Standing out with its digital keyless entry into self-storage room technology, Janus (NYSE:JBI) is a provider of easily accessible self-storage solutions.
Janus reported revenues of $248.4 million, down 8.2% year on year, falling short of analysts' expectations by 12%. It performed better than its peers, but it was unfortunately a weak quarter for the company with full-year revenue guidance missing analysts' expectations and underwhelming EBITDA guidance for the full year.
Although it had a great quarter compared its peers, the market seems unhappy with the results as the stock is down 20.9% since reporting. It currently trades at $10.51.
AZZ (NYSE:AZZ) Responsible for projects like nuclear facilities, AZZ (NYSE:AZZ) is a provider of metal coating solutions and infrastructure solutions.
AZZ reported revenues of $413.2 million, up 5.7% year on year, exceeding analysts' expectations by 2.8%. It was a slower quarter for the company with a miss of analysts' earnings estimates.
As expected, the stock is down 3% since the results and currently trades at $74.22.
Johnson Controls (NYSE:NYSE:JCI) Founded after patenting the electric room thermostat, Johnson Controls (NYSE:JCI) specializes in building products and technology solutions, including HVAC systems, fire and security systems, and energy storage.
Johnson Controls reported revenues of $7.23 billion, up 1.4% year on year, falling short of analysts' expectations by 1.5%. Revenue aside, it was a mixed quarter for the company with strong earnings guidance for the full year but underwhelming earnings guidance for the next quarter.
The stock is down 1.8% since reporting and currently trades at $67.77.
This content was originally published on Stock Story
