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 American Woodmark (NASDAQ:AMWD) 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 12 home construction materials stocks we track reported a satisfactory Q4. As a group, revenues beat analysts’ consensus estimates by 1.5%.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 8.2% since the latest earnings results.
Weakest Q4: American Woodmark (NASDAQ:AMWD)
Starting as a small millwork shop, American Woodmark (NASDAQ:AMWD) is a cabinet manufacturing company that helps customers from inspiration to installation.
American Woodmark reported revenues of $397.6 million, down 5.8% year on year. This print fell short of analysts’ expectations by 3.3%. Overall, it was a disappointing quarter for the company with full-year EBITDA guidance missing analysts’ expectations.
“Despite performance that was below our expectations for the quarter, our teams continue to execute and have built a platform to deliver profitable growth when macroeconomic conditions improve. The quarter was impacted by softer demand in the remodel market and a decline in new construction single family activity as inventories were reduced,” said Scott Culbreth, President and CEO.
The stock is down 14.7% since reporting and currently trades at $60.69.
Read our full report on American Woodmark here, it’s free.
Best Q4: 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 $2.84 billion, up 23.3% year on year, outperforming analysts’ expectations by 2.7%. The business had a stunning quarter with an impressive beat of analysts’ organic revenue and EBITDA estimates.
Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 11.1% since reporting. It currently trades at $147.15.
Is now the time to buy Owens Corning? Access our full analysis of the earnings results here, it’s free.
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 $1.10 billion, down 4.9% year on year, falling short of analysts’ expectations by 3.5%. It was a disappointing quarter as it posted full-year EPS guidance missing analysts’ expectations.
Fortune Brands delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 8.9% since the results and currently trades at $62.91.
Read our full analysis of Fortune Brands’s results here.
Builders FirstSource (NYSE:BLDR)
Headquartered in Irving, TX, Builders FirstSource (NYSE:BLDR) is a construction materials manufacturer that offers a variety of lumber and lumber-related building products.
Builders FirstSource reported revenues of $3.82 billion, down 8% year on year. This number came in 1.6% below analysts' expectations. Overall, it was a slower quarter as it also produced full-year EBITDA guidance missing analysts’ expectations significantly.
The stock is down 11.9% since reporting and currently trades at $127.50.
Read our full, actionable report on Builders FirstSource here, it’s free.
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 $632.4 million, down 1.7% year on year. This print lagged analysts' expectations by 0.8%. Aside from that, it was a very strong quarter as it put up an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ EPS estimates.
The stock is down 2.8% since reporting and currently trades at $72.24.
Read our full, actionable report on Griffon here, it’s free.
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