Gibraltar Industries Cuts Q2 Earnings Outlook on Lower Sales


Gibraltar Industries, Inc. (ROCK) recently announced its fiscal second-quarter 2014 (ending Jun 30, 2014) preliminary results. The company expects revenues in the range of $230–$233 million, down from previously expected range of $243–$248 million. Residential Products segment sales are expected to be within $116–$118 million, which leads to 6% year over year growth, down from 20% growth expected earlier. Additionally, adjusted net income has been lowered to a range of 14–16 cents per share from the previous projection of 29–32 cents per share. 

The reduced outlook was due to lower end-market demand in the fiscal second quarter. Gibraltar Industries had reported disappointing fiscal first-quarter 2014 results due to prolonged cold weather in major parts of the U.S. Its hopes for stronger sales in the fiscal second quarter were also dashed due to weak demand for residential products. Gross profit margin in the fiscal first quarter decreased 275 basis points to 15.6%.

In the fiscal second quarter, residential products sales remained low with no further signs of improvement expected in second half of the year. Gibraltar Industries does not expect revenues in the second half of fiscal 2014 to be significantly higher than the first half. Based on this, the company expects adjusted earnings per share in the second half of the fiscal year to be in line with the first half.

The company is expected to release fiscal second-quarter results on Aug 5. The Zacks Consensus Estimate for the same stands at 15 cents per share, reflecting a year-over-year decline of 42.3%. However, the Zacks Consensus Estimate for fiscal 2014 stands at 82 cents per share, denoting year-over-year growth of 18.8%.

With a market capitalization of $474.8 million, Gibraltar Industries sports a Zacks Rank #1 (Strong Buy). Other stocks worth considering in the industry include James Hardie Industries plc (JHX), Quanex Building Products Corporation (NX) and Simpson Manufacturing Co., Inc. (SSD). All these stocks carry a Zacks Rank #2 (Buy).

Read the Full Research Report on NX
Read the Full Research Report on ROCK
Read the Full Research Report on JHX
Read the Full Research Report on SSD

Zacks Investment Research

View Comments (0)