Outdoor living products manufacturer AZEK Company (NYSE:AZEK) will be reporting results tomorrow after the bell. Here’s what investors should know.
AZEK beat analysts’ revenue expectations by 9.5% last quarter, reporting revenues of $434.4 million, up 12.1% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ organic revenue and EBITDA estimates.
Is AZEK a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting AZEK’s revenue to decline 12.6% year on year to $340 million, a reversal from the 27.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.27 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. AZEK has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 4.7% on average.
Looking at AZEK’s peers in the building materials segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Tecnoglass delivered year-on-year revenue growth of 13.1%, missing analysts’ expectations by 0.8%, and Resideo reported revenues up 17.6%, in line with consensus estimates. Tecnoglass traded up 8.3% following the results while Resideo was also up 10.5%.
Read our full analysis of Tecnoglass’s results here and Resideo’s results here.
There has been positive sentiment among investors in the building materials segment, with share prices up 2.7% on average over the last month. AZEK is up 5.7% during the same time and is heading into earnings with an average analyst price target of $50.22 (compared to the current share price of $45.67).
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