MAS) And The Rest Of The Home Construction Materials Stocks
Looking back on home construction materials stocks’ Q3 earnings, we examine this quarter’s best and worst performers, including Masco (NYSE:MAS) 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 mixed Q3. As a group, revenues missed analysts’ consensus estimates by 0.7%.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 6.4% since the latest earnings results.
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 $1.98 billion, flat year on year. This print fell short of analysts’ expectations by 0.6%. Overall, it was a mixed quarter for the company with organic revenue in line with analysts’ estimates but a slight miss of analysts’ EPS estimates.
“We delivered another quarter of strong operating results,” said Masco President and CEO, Keith Allman.
The stock is down 1.3% since reporting and currently trades at $80.60.
Read our full report on Masco here, it’s free.
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 $233.7 million, down 23.1% year on year, outperforming analysts’ expectations by 3.3%. The business had an exceptional quarter with a solid beat of analysts’ EBITDA estimates.
Trex pulled off the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 11.4% since reporting. It currently trades at $74.06.
Is now the time to buy Trex? Access our full analysis of the earnings results here, it’s free.
Founded in the 1960s as a general wood-making company, JELD-WEN (NYSE:JELD) manufactures doors, windows, and other related building products.
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