Home Construction Materials Stocks Q1 Highlights: Simpson (NYSE:SSD)

Let's dig into the relative performance of Simpson (NYSE:SSD) and its peers as we unravel the now-completed Q1 home construction materials earnings season.

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 13 home construction materials stocks we track reported an ok Q1; on average, revenues beat analyst consensus estimates by 0.5%. while next quarter's revenue guidance was 2.3% above consensus. 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 home construction materials stocks have fared somewhat better than others, they collectively declined, with share prices falling 0.3% on average since the previous earnings results.

Simpson (NYSE:SSD) Aiming to build safer and stronger buildings, Simpson (NYSE:SSD) designs and manufactures structural connectors, anchors, and other construction products.

Simpson reported revenues of $530.6 million, flat year on year, falling short of analysts' expectations by 2.6%. Overall, it was a weak quarter for the company with a miss of analysts' earnings estimates.

"I am pleased with our first quarter performance in what continues to be a challenging market for new housing starts in both the U.S. and Europe," commented Mike Olosky, President and Chief Executive Officer of Simpson Manufacturing Co.,

The stock is flat since reporting and currently trades at $186.13.

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Best Q1: 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 $672.9 million, down 5.4% year on year, outperforming analysts' expectations by 7.6%. It was an incredible quarter for the company with an impressive beat of analysts' earnings estimates.

Griffon achieved the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 8.2% since reporting. It currently trades at $73.34.

Masonite (NYSE:DOOR) A company that has specialized in making doors for an entire century, Masonite (NYSE:DOOR) designs and manufactures indoor and outdoor doors for residential and commercial markets.

Masonite reported revenues of $668.3 million, down 7.9% year on year, falling short of analysts' expectations by 6.5%. It was a weak quarter for the company with a miss of analysts' earnings and volume estimates.

Masonite had the weakest performance against analyst estimates in the group. The stock is flat since the results and currently trades at $133.02.

Hayward (NYSE:HAYW) Credited with introducing the first variable-speed pool pump, Hayward (NYSE:HAYW) makes residential and commercial pool equipment and accessories.

Hayward reported revenues of $212.6 million, up 1.2% year on year, surpassing analysts' expectations by 1.7%. Zooming out, it was a strong quarter for the company with an impressive beat of analysts' organic revenue estimates.

The stock is up 2.1% since reporting and currently trades at $13.81.

JELD-WEN (NYSE:JELD) Founded in the 1960s as a general wood-making company, JELD-WEN (NYSE:JELD) manufactures doors, windows, and other related building products.

JELD-WEN reported revenues of $959.1 million, down 11.2% year on year, in line with analysts' expectations. Taking a step back, it was an ok quarter for the company with a solid beat of analysts' earnings estimates but a miss of analysts' organic revenue estimates.

JELD-WEN had the slowest revenue growth among its peers. The stock is down 15.4% since reporting and currently trades at $16.10.

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