Wrapping up Q1 earnings, we look at the numbers and key takeaways for the home construction materials stocks, including JELD-WEN (NYSE: JELD) and its peers.
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 11 home construction materials stocks we track reported a strong Q1. As a group, revenues beat analysts’ consensus estimates by 2.8% while next quarter’s revenue guidance was 1.6% above.
Thankfully, share prices of the companies have been resilient as they are up 6.7% on average since the latest earnings results.
JELD-WEN (NYSE: JELD)
Founded in the 1960s as a general wood-making company, JELD-WEN (NYSE: JELD) manufactures doors, windows, and other related building products.
JELD-WEN reported revenues of $722.1 million, down 6.9% year on year. This print was in line with analysts’ expectations, but overall, it was a mixed quarter for the company with full-year EBITDA guidance exceeding analysts’ expectations but a significant miss of analysts’ EBITDA estimates.
JELD-WEN scored the highest full-year guidance raise of the whole group. Still, the market seems discontent with the results. The stock is down 11.9% since reporting and currently trades at $1.23.
Is now the time to buy JELD-WEN? Access our full analysis of the earnings results here, it’s free.
Best Q1: Simpson (NYSE: SSD)
Aiming to build safer and stronger buildings, Simpson (NYSE: SSD) designs and manufactures structural connectors, anchors, and other construction products.
Simpson reported revenues of $588 million, up 9.1% year on year, outperforming analysts’ expectations by 6.4%. The business had a stunning quarter with a solid beat of analysts’ EBITDA and EPS estimates.
The market seems content with the results as the stock is up 2.1% since reporting. It currently trades at $190.35.
Is now the time to buy Simpson? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: 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 $421.9 million, down 1.1% year on year, exceeding analysts’ expectations by 1.8%. Still, it was a slower quarter as it posted full-year revenue and EBITDA guidance missing analysts’ expectations.
Griffon delivered the weakest full-year guidance update in the group. As expected, the stock is down 1.7% since the results and currently trades at $90.98.
Read our full analysis of Griffon’s results here.
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 $462.4 million, up 2.2% year on year. This result topped analysts’ expectations by 0.6%. Overall, it was a very strong quarter as it also logged a beat of analysts’ EPS and EBITDA estimates.
The stock is down 2.3% since reporting and currently trades at $17.40.
Read our full, actionable report on Quanex 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 $1.01 billion, down 2.1% year on year. This number was in line with analysts’ expectations. Taking a step back, it was a slower quarter as it logged a miss of analysts’ EBITDA estimates and EPS in line with analysts’ estimates.
Fortune Brands had the weakest performance against analyst estimates among its peers. The stock is up 32.1% since reporting and currently trades at $51.62.
Read our full, actionable report on Fortune Brands here, it’s free.
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