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 Hayward (NYSE:HAYW) and the rest of the home construction materials stocks fared in Q1.
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 9 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. 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, and home construction materials stocks have had a rough stretch, with share prices down 14.9% on average since the previous earnings results.
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, topping analysts' expectations by 1.7%. It was a strong quarter for the company, with an impressive beat of analysts' organic revenue estimates.
“I am pleased to report first quarter results consistent with expectations”Post (NYSE:POST) this CEO COMMENTS
The stock is down 10.6% since the results and currently trades at $12.09.
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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 delivered the biggest analyst estimates beat among its peers. The stock is down 4.5% since the results and currently trades at $64.71.
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 estimates.
Masonite had the weakest performance against analyst estimates in the group. The stock is up 0.3% since the results and currently trades at $133.02.
Trex (NYSE:TREX) Addressing the demand for aesthetically-pleasing and unique outdoor living spaces, Trex Company (NYSE:TREX) makes wood-alternative decking, railing, and patio furniture.
Trex reported revenues of $373.6 million, up 56.5% year on year, surpassing analysts' expectations by 1.7%. It was a very strong quarter for the company, with an impressive beat of analysts' organic revenue estimates.
Trex pulled off the fastest revenue growth among its peers. The stock is down 22.3% since the results and currently trades at $72.59.
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 $292.5 million, down 0.3% year on year, falling short of analysts' expectations by 1.6%. It was a decent quarter for the company, with a solid beat of analysts' earnings estimates.
The stock is down 7.1% since the results and currently trades at $66.37.
This content was originally published on Stock Story
