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Building Materials Stocks Q1 Results: Benchmarking Armstrong World (NYSE:AWI)


Adam Hejl /
2024/07/11 7:09 am EDT

As the Q1 earnings season wraps, let's dig into this quarter's best and worst performers in the building materials industry, including Armstrong World (NYSE:AWI) and its peers.

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 those trading at higher multiples--had a strong end of 2023, but 2024 has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts, and building materials stocks have held roughly steady amidst all this, with share prices up 2.8% on average since the previous earnings results.

Armstrong World (NYSE:AWI)

Started as a two-man shop dating back to the 1860s, Armstrong (NYSE:AWI) provides ceiling and wall products to commercial and residential spaces.

Armstrong World reported revenues of $326.3 million, up 5.2% year on year, exceeding analysts' expectations by 2.1%. Overall, it was an impressive quarter for the company with full-year revenue guidance exceeding analysts' expectations and a solid beat of analysts' organic revenue estimates.

“The record results we delivered this quarter reflect the resilience of our business model and the momentum we carried into the year. The ability to drive sales and earnings growth with margin expansion while facing choppy, uncertain market conditions is an ongoing testament to the strong commercial and operational execution of our teams,” said Vic Grizzle, President and CEO of Armstrong World Industries.

Armstrong World Total Revenue

Armstrong World pulled off the highest full-year guidance raise of the whole group. The stock is down 4.2% since reporting and currently trades at $113.84.

Is now the time to buy Armstrong World? Access our full analysis of the earnings results here, it's free.

Best Q1: Carlisle (NYSE:CSL)

Originally founded as Carlisle Tire and Rubber Company, Carlisle (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 Total Revenue

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 11.2% since reporting. It currently trades at $424.99.

Is now the time to buy Carlisle? Access our full analysis of the earnings results here, it's free.

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. As expected, the stock is down 4.9% since the results and currently trades at $110.1.

Read our full analysis of UFP's results here.

Valmont (NYSE:VMI)

Credited with an invention in the 1950s that improved crop yields, Valmont (NYSE:VMI) provides engineered products and infrastructure services for the agricultural industry.

Valmont reported revenues of $977.8 million, down 8% year on year, in line with analysts' expectations. Looking more broadly, it was a decent quarter for the company with an impressive beat of analysts' earnings estimates.

The stock is up 27.1% since reporting and currently trades at $263.79.

Read our full, actionable report on Valmont here, it's free.

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. Looking more broadly, it was a mixed quarter for the company.

The stock is flat since reporting and currently trades at $51.45.

Read our full, actionable report on Tecnoglass here, it's free.

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