Earnings results often indicate what direction a company will take in the months ahead. With Q1 behind us, let’s have a look at 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 12 home construction materials stocks we track reported a satisfactory Q1. As a group, revenues were in line with analysts’ consensus estimates.
While some home construction materials stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 4.2% 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 $776 million, down 19.1% year on year. This print exceeded analysts’ expectations by 0.8%. Overall, it was an exceptional quarter for the company with an impressive beat of analysts’ organic revenue estimates and a solid beat of analysts’ adjusted operating income estimates.
"While market conditions remained very challenging during the first quarter, they developed mostly as expected," said Chief Executive Officer William J. Christensen.
JELD-WEN delivered the slowest revenue growth of the whole group. The stock is down 35.6% since reporting and currently trades at $3.61.
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 $538.9 million, up 1.6% year on year, outperforming analysts’ expectations by 2%. The business had an exceptional quarter with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ EPS estimates.
However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $153.77.
Is now the time to buy Simpson? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: Masco (NYSE:MAS)
Headquartered just outside of Detroit, MI, Masco (NYSE:MAS) designs and manufactures home-building products such as glass shower doors, decorative lighting, bathtubs, and faucets.
Masco reported revenues of $1.80 billion, down 6.5% year on year, falling short of analysts’ expectations by 2%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income estimates.
The stock is flat since the results and currently trades at $61.19.
Read our full analysis of Masco’s results here.
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 $400.4 million, down 11.7% year on year. This number missed analysts’ expectations by 6.6%. Overall, it was a softer quarter as it also logged full-year EBITDA guidance missing analysts’ expectations.
American Woodmark had the weakest performance against analyst estimates among its peers. The stock is down 10.1% since reporting and currently trades at $50.84.
Read our full, actionable report on American Woodmark here, it’s free.
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 $2.53 billion, up 25.4% year on year. This result topped analysts’ expectations by 0.7%. Aside from that, it was a slower quarter as it logged a significant miss of analysts’ organic revenue estimates.
The stock is down 6.4% since reporting and currently trades at $133.43.
Read our full, actionable report on Owens Corning here, it’s free.
Market Update
Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.
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