The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how building materials stocks fared in Q1, starting with Resideo (NYSE:REZI).
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 shown resilience, with share prices up 7.8% on average since the previous earnings results.
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. Overall, it was a solid quarter for the company with an impressive beat of analysts' earnings estimates.
"Performance within Products and Solutions drove first quarter Adjusted EBITDA to the higher end of our outlook range," commented Jay Geldmacher, Resideo's President and CEO.
The stock is up 7.7% since reporting and currently trades at $21.25.
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Best Q1: Carlisle (NYSE:CSL) Originally founded as Carlisle Tire and Rubber Company, Carlisle Companies (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 delivered the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 9.1% since reporting. It currently trades at $417.
Weakest Q1: UFP (NASDAQ:UFPI) Beginning as a lumber supplier in the 1950s, UFP (NASDAQ:UFPI) makes a wide range of building materials for the construction, retail, and industrial sectors
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 posted the weakest performance against analyst estimates and slowest revenue growth in the group. Interestingly, the stock is up 4.4% since the results and currently trades at $120.86.
Tecnoglass (NYSE:TGLS) The first-ever Colombian company to trade on the NASDAQ, Tecnoglass (NYSE:TGLS) is a manufacturer of architectural glass, windows, and aluminum products.
Tecnoglass reported revenues of $192.6 million, down 4.9% year on year, in line with analysts' expectations. Zooming out, it was a mixed quarter for the company.
The stock is flat since reporting and currently trades at $51.45.
AZEK (NYSE:AZEK) With a significant portion of its products made from recycled materials, AZEK (NYSE:AZEK) designs and manufactures goods for outdoor living spaces.
AZEK reported revenues of $418.4 million, up 10.8% year on year, surpassing analysts' expectations by 1.5%. Overall, it was a good quarter for the company with a decent beat of analysts' organic revenue estimates.
AZEK had the weakest full-year guidance update among its peers. The stock is down 1.6% since reporting and currently trades at $44.20.
This content was originally published on Stock Story
