Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Owens Corning (NYSE:OC) and the best and worst performers in the home construction materials industry.
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 10 home construction materials stocks we track reported a decent Q1; on average, revenues beat analyst consensus estimates by 0.7%. while next quarter's revenue guidance was 2.3% above consensus. Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. The start of 2024 has been a bumpier ride, as the market switches between optimism and pessimism around rate cuts due to mixed inflation data, and home construction materials stocks have had a rough stretch, with share prices down 12.2% on average since the previous earnings results.
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 $2.3 billion, down 1.3% year on year, in line with analysts' expectations. It was an ok quarter for the company with a solid beat of analysts' earnings estimates but a miss of analysts' organic revenue estimates.
“Owens Corning started the year with first-quarter results that continue to highlight our strong and consistent enterprise performance. These results are driven by the strength of our team and the actions we have taken over the last several years to generate higher, more resilient earnings,” said Chair and Chief Executive Officer Brian Chambers.
The stock is flat since reporting and currently trades at $168.41.
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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. Although it had a great quarter compared its peers, the market seems unhappy with the results as the stock is down 5.8% since reporting. It currently trades at $63.84.
Weakest Q1: 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 posted the weakest performance against analyst estimates in the group. The stock is flat since the results and currently trades at $133.02.
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 $1.11 billion, up 6.7% year on year, surpassing analysts' expectations by 2.7%. Looking more broadly, it was an exceptional quarter for the company with an impressive beat of analysts' organic revenue estimates and a decent beat of analysts' earnings estimates.
The stock is down 11.3% since reporting and currently trades at $64.84.
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. Looking more broadly, 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 32.3% since reporting and currently trades at $12.88.
This content was originally published on Stock Story
