Let’s dig into the relative performance of Tecnoglass (NYSE:TGLS) and its peers as we unravel the now-completed Q4 building materials earnings season.
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 9 building materials stocks we track reported a strong Q4. As a group, revenues beat analysts’ consensus estimates by 2% while next quarter’s revenue guidance was 1.8% below.
While some building materials stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 2.6% since the latest earnings results.
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 $239.6 million, up 23.1% year on year. This print was in line with analysts’ expectations, but overall, it was a mixed quarter for the company with a narrow beat of analysts’ adjusted operating income estimates but full-year EBITDA guidance missing analysts’ expectations.
José Manuel Daes, Chief Executive Officer of Tecnoglass, commented, “I am thrilled with our performance in 2024, as we delivered another year of record results driven by market share gains in our single-family residential business, continued momentum in multi-family/commercial demand, and the operational advantages of our vertically integrated business model.”
Tecnoglass achieved the fastest revenue growth of the whole group. The stock is up 4.8% since reporting and currently trades at $73.20.
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Best Q4: Vulcan Materials (NYSE:VMC)
Founded in 1909, Vulcan Materials (NYSE:VMC) is a producer of construction aggregates, primarily crushed stone, sand, and gravel.Vulcan Materials reported revenues of $1.85 billion, up 1.1% year on year, outperforming analysts’ expectations by 2.1%. The business had a stunning quarter with an impressive beat of analysts’ EBITDA estimates.
Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 8.5% since reporting. It currently trades at $247.31.
Weakest Q4: 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 $1.12 billion, flat year on year, falling short of analysts’ expectations by 1.9%. It was a slower quarter as it posted a miss of analysts’ EBITDA estimates and a miss of analysts’ organic revenue estimates.
Carlisle delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 9.4% since the results and currently trades at $340.76.
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 $285.4 million, up 18.7% year on year. This print surpassed analysts’ expectations by 7.9%. Overall, it was a very strong quarter as it also produced a solid beat of analysts’ organic revenue estimates and an impressive beat of analysts’ EPS estimates.
AZEK pulled off the biggest analyst estimates beat among its peers. The stock is down 6.8% since reporting and currently trades at $46.85.
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 $1.86 billion, up 20.9% year on year. This result topped analysts’ expectations by 1.1%. Zooming out, it was a mixed quarter as it also recorded a decent beat of analysts’ EPS estimates but a significant miss of analysts’ adjusted operating income estimates.
The stock is down 9.9% since reporting and currently trades at $19.34.
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This content was originally published on Stock Story
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