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 commercial building products stocks fared in Q2, starting with Janus (NYSE:JBI).
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. As a group, revenues missed analysts' consensus estimates by 2.5%.
Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market was optimistic at the end of 2023 due to cooling inflation. This year has been a different story as mixed inflation signals have led to market volatility, and commercial building products stocks have had a rough stretch. On average, share prices are down 6.7% since the latest earnings results.
Weakest Q2: 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. This print fell short of analysts' expectations by 12%. Overall, it was a weak quarter for the company with full-year revenue guidance missing analysts' expectations and underwhelming EBITDA guidance for the full year.
“We delivered solid margin performance in the second quarter despite a sustained high interest rate environment that is driving cautious behavior across our end markets.” said Ramey Jackson, Chief Executive Officer.
Janus delivered the weakest performance against analyst estimates of the whole group. Unsurprisingly, the stock is down 22.9% since reporting and currently trades at $10.24.
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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. It was a strong quarter for the company with an impressive beat of analysts' earnings estimates.
The market seems content with the results as the stock is up 3% since reporting. It currently trades at $60.91.
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 3.4% since the results and currently trades at $73.86.
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 3.6% since reporting and currently trades at $66.56.
This content was originally published on Stock Story
