Home Construction Materials Stocks Q1 Recap: Benchmarking American Woodmark (NASDAQ:AMWD)
As the Q1 earnings season wraps, let's dig into this quarter's best and worst performers in the home construction materials industry, including American Woodmark (NASDAQ:AMWD) 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 13 home construction materials stocks we track reported an ok Q1; on average, revenues beat analyst consensus estimates by 0.5%. while next quarter's revenue guidance was 2.3% above consensus. Stocks--especially those trading at higher multiples--had a strong end of 2023, but 2024 has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts, and while some of the home construction materials stocks have fared somewhat better than others, they collectively declined, with share prices falling 2.4% on average since the previous earnings results.
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 $453.3 million, down 5.8% year on year, exceeding analysts' expectations by 2.8%. Overall, it was a mixed quarter for the company.
“Our teams delivered another strong quarter despite the soft remodel market demand environment,” said Scott Culbreth, President and CEO.
The stock is down 1.5% since reporting and currently trades at $91.32.
Read our full report on American Woodmark here, it's free.
Best 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 $672.9 million, down 5.4% year on year, outperforming analysts' expectations by 7.6%. It was an incredible quarter for the company with an impressive beat of analysts' earnings estimates.
Griffon scored the biggest analyst estimates beat among its peers. The market seems content with the results as the stock is up 4% since reporting. It currently trades at $70.46.
Is now the time to buy Griffon? Access our full analysis of the earnings results here, it's free.
Weakest 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 $530.6 million, flat year on year, falling short of analysts' expectations by 2.6%. It was a weak quarter for the company with a miss of analysts' earnings estimates.
The stock is flat since the results and currently trades at $183.95.
Read our full analysis of Simpson's results here.
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 $959.1 million, down 11.2% year on year, in line with analysts' expectations. Zooming out, it was an ok quarter for the company with a solid beat of analysts' earnings estimates but a miss of analysts' organic revenue estimates.
JELD-WEN had the slowest revenue growth among its peers. The stock is down 15.8% since reporting and currently trades at $16.03.
Read our full, actionable report on JELD-WEN 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 $2.3 billion, down 1.3% year on year, in line with analysts' expectations. Taking a step back, it was a decent quarter for the company with a solid beat of analysts' earnings estimates but a miss of analysts' organic revenue estimates.
The stock is flat since reporting and currently trades at $169.11.
Read our full, actionable report on Owens Corning here, it's free.
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