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 Griffon (NYSE:GFF).
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 0.6% below.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 8.3% since the latest earnings results.
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 print exceeded analysts’ expectations by 4.9%. Overall, it was a strong quarter for the company with a solid beat of analysts’ revenue estimates and full-year EBITDA guidance exceeding analysts’ expectations.
Griffon Total Revenue
Griffon delivered the weakest full-year guidance update of the whole group. Interestingly, the stock is up 12.5% since reporting and currently trades at $75.22.
Is now the time to buy Griffon? Access our full analysis of the earnings results here, it’s free for active Edge members.
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.
Quanex Total Revenue
Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 1.6% since reporting. It currently trades at $14.85.
Is now the time to buy Quanex? Access our full analysis of the earnings results here, it’s free for active Edge members.
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 5.3% since the results and currently trades at $54.59.
Read our full analysis of American Woodmark’s results here.
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 $1.15 billion, flat year on year. This result missed analysts’ expectations by 2.7%. Overall, it was a softer quarter as it also recorded a significant miss of analysts’ revenue estimates and a significant miss of analysts’ EPS estimates.
The stock is up 3.4% since reporting and currently trades at $50.44.
Read our full, actionable report on Fortune Brands here, it’s free for active Edge members.
Aiming to build safer and stronger buildings, Simpson (NYSE:SSD) designs and manufactures structural connectors, anchors, and other construction products.
Simpson reported revenues of $623.5 million, up 6.2% year on year. This print beat analysts’ expectations by 3.1%. Zooming out, it was a slower quarter as it logged a significant miss of analysts’ EPS estimates and a miss of analysts’ EBITDA estimates.
The stock is down 6% since reporting and currently trades at $165.31.
Read our full, actionable report on Simpson here, it’s free for active Edge members.
Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.
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