Breaking News
0

Gibraltar's (ROCK) Q1 Earnings Lag Estimates, Shares Down

By Zacks Investment ResearchStock MarketsMay 06, 2019 02:46AM ET
www.investing.com/analysis/gibraltars-rock-q1-earnings-lag-estimates-shares-down-200417543
Gibraltar's (ROCK) Q1 Earnings Lag Estimates, Shares Down
By Zacks Investment Research   |  May 06, 2019 02:46AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

Gibraltar Industries, Inc. (NYSE:OC) reported mixed first-quarter 2019 results, wherein earnings missed the Zacks Consensus Estimate, while revenues beat the same. Consequently, the stock declined 5.2% during Friday’s trading session.

Gibraltar reported adjusted earnings of 28 cents, missing the consensus estimate of 32 cents by 12.5%. However, the reported figure increased 7.7% year over year on the back of robust performance from the Industrial and Infrastructure segment, interest savings on loan repayment, and enduring benefits from 80/20 simplification initiatives.

The company’s net sales during the reported quarter came in at $227.4 million, exceeding analysts’ expectation of $223 million and improving 5.6% on a year-over-year basis. The improvement was mainly backed by increased demand for innovative products in Industrial and Infrastructure, and Renewable Energy and Conservation segments, along with improved activity in the Infrastructure business.

Gibraltar Industries, Inc. Price, Consensus and EPS Surprise

Segmental Details

Residential Products segment’s net sales totaled $103.7 million during the quarter, down 0.2% year over year. Segment sales decreased mainly due to lower demand for building products, caused by unfavorable weather conditions and volume declines owing to selling price increases. Adjusted operating margins also contracted 80 basis points (bps).

Net sales in the Industrial and Infrastructure Products segment grew 0.9% year over year to $54.9 million. The upside was driven by increased activity in the Infrastructure unit and continued demand for innovative products, partially offset by lower volumes in the Industrial business for more commoditized products.

Notably, adjusted operating margins in the segment expanded 360 bps to 7.5%, backed by favorable product mix, higher volume leverage in the Infrastructure business, and continued benefit from 80/20 simplification initiatives.

Quarterly net sales at the Renewable Energy and Conservation segment rose 20.7% year over year to $68.8 million. The improved results were attributable to strong demand for its innovative tracker solution and solid contribution from SolarBOS. However, operating margins decreased 520 bps to 2.5% due to additional costs incurred for the recently launched tracker solution for improving durability and performance.

Costs and Margins

Cost of sales in the quarter was $183.5 million, increasing 9.9% year over year. Gross margin came in at 19.3%, down 310 bps year over year.

Selling, general and administrative expenses grew 3.3% year over year to $33.3 million. Adjusted operating margin of 5.8% contacted 60 bps year over year.

Balance Sheet and Cash Flow

As of Mar 31, 2019, Gibraltar had cash and cash equivalents worth $43.5 million compared with $297 million recorded at the end of 2018. Long-term debt was $1.6 million, in line with the 2018-end figure.

In the first three months of 2019, the company used $37.5 million cash from operating activities compared with $22.2 million a year ago.

Guidance

Gibraltar remains confident about end-markets served across the business. The company intends to gain efficiency on the back of innovative product development, strategic acquisitions and the implementation of 80/20 simplification projects.

For 2019, Gibraltar expects consolidated revenues to be more than $1 billion. The company projects adjusted earnings in the range of $2.40-$2.55 per share. Adjusted operating income is expected in the range of $110-$117 million. Adjusted operating margin is expected in the range of 10.6-11.1%.

For second-quarter 2019, the company anticipates to generate revenues in the range of $268-$274 million. Also, adjusted earnings are projected within 72-77 cents per share, indicating an improvement from 71 cents reported in the year-ago quarter.

Zacks Rank & Peer Releases

Currently, Gibraltar has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

United Rentals (NYSE:URI) reported first-quarter 2019 results, wherein both the top and bottom lines surpassed the Zacks Consensus Estimate, as well as improved on a year-over-year basis. Adjusted earnings of $3.31 per share beat the consensus mark of $3.06 by 8.3% and increased 15.3% from the prior-year figure of $2.87. Total revenues of $2.12 billion outpaced the consensus mark of $2.07 billion by 2.5%. Further, revenues rose 22.1% year over year.

Owens Corning (NYSE:OC) reported first-quarter 2019 adjusted earnings of 54 cents per share, lagging the Zacks Consensus Estimate of 56 cents by 3.6%. Also, net sales of $1.67 billion missed analysts’ expectation of $1.69 billion by 1.5% in the reported quarter. Moreover, both the top and bottom lines decreased 34.1% and 1%, respectively, on a year-over-year basis.

Masco Corp. (NYSE:MAS) reported first-quarter 2019 adjusted earnings of 44 cents per share, missing the consensus mark of 47 cents by 6.4%. Also, total net sales of $1,908 million fell short of analysts’ expectation of $2,007 million by 4.9%. Moreover, on a year-over-year basis, adjusted earnings and net sales slipped 2.2% and 0.6%, respectively. Also, net sales (excluding acquisitions and currency) declined 2% from the prior-year quarter.

Will you retire a millionaire?

One out of every six people retires a multimillionaire. Get smart tips you can do today to become one of them in a new Special Report, “7 Things You Can Do Now to Retire a Multimillionaire.”

Click to get it free >>



United Rentals, Inc. (URI): Free Stock Analysis Report

Owens Corning Inc (OC): Free Stock Analysis Report

Masco Corporation (MAS): Free Stock Analysis Report

Gibraltar Industries, Inc. (ROCK): Free Stock Analysis Report

Original post

Zacks Investment Research
Gibraltar's (ROCK) Q1 Earnings Lag Estimates, Shares Down
 
Gibraltar's (ROCK) Q1 Earnings Lag Estimates, Shares Down

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email