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 home construction materials stocks fared in Q3, starting with Owens Corning (NYSE:OC).
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 slower Q3. As a group, revenues were in line with analysts’ consensus estimates while next quarter’s revenue guidance was 0.5% below.
In light of this news, share prices of the companies have held steady as they are up 3% on average since the latest earnings results.
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 $2.68 billion, down 2.9% year on year. This print fell short of analysts’ expectations by 0.5%. Overall, it was a slower quarter for the company with revenue guidance for next quarter missing analysts’ expectations significantly and a significant miss of analysts’ adjusted operating income estimates.
The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $122.98.
Read our full report on Owens Corning here, it’s free.
Best Q3: Quanex (NYSE:NX)
Starting in the seamless tube industry, Quanex (NYSE:NX) manufactures building products like window, door, kitchen, and bath cabinet components.
Quanex reported revenues of $489.8 million, flat year on year, outperforming analysts’ expectations by 4.4%. The business had an incredible quarter with a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
The market seems happy with the results as the stock is up 17.3% since reporting. It currently trades at $17.69.
Is now the time to buy Quanex? Access our full analysis of the earnings results here, it’s free.
Slowest Q3: 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 $394.6 million, down 12.8% year on year, falling short of analysts’ expectations by 2.4%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue estimates and a significant miss of analysts’ adjusted operating income estimates.
Interestingly, the stock is up 18.5% since the results and currently trades at $61.45.
Read our full analysis of American Woodmark’s results here.
Trex (NYSE:TREX)
Addressing the demand for aesthetically-pleasing and unique outdoor living spaces, Trex Company (NYSE:TREX) makes wood-alternative decking, railing, and patio furniture.
Trex reported revenues of $285.3 million, up 22.1% year on year. This result missed analysts’ expectations by 5.3%. It was a softer quarter as it also logged full-year revenue guidance missing analysts’ expectations significantly and revenue guidance for next quarter missing analysts’ expectations significantly.
Trex achieved the fastest revenue growth but had the weakest performance against analyst estimates among its peers. The stock is down 9.9% since reporting and currently trades at $41.70.
Read our full, actionable report on Trex 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 $662.2 million, flat year on year. This number topped analysts’ expectations by 4.9%. It was a strong quarter as it also logged an impressive beat of analysts’ revenue estimates and full-year EBITDA guidance exceeding analysts’ expectations.
Griffon had the weakest full-year guidance update among its peers. The stock is up 23.2% since reporting and currently trades at $82.35.
Read our full, actionable report on Griffon here, it’s free.
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