Janus International (JBI) Q4 Earnings & Revenue Miss, Stock Down
Janus International Group, Inc. JBI reported dismal fourth-quarter 2023 results, with earnings and revenues missing the Zacks Consensus Estimate. On a year-over-year basis, the top line declined, but the bottom line increased.
In 2023, JBI achieved record results driven by a relentless focus on execution and strong demand fundamentals in its end markets. Supported by its leading market position in self-storage, the company saw solid organic growth, improved adjusted EBITDA margin, substantial free cash flow generation, and another meaningful decrease in net leverage to 1.6x.
Shares of this leading provider of cutting-edge access control technologies and building product solutions dropped 5.2% during the trading session on Feb 28.
Earnings & Revenue Discussion
In the quarter under review, Janus reported earnings per share of 24 cents, missing the Zacks Consensus Estimate of 25 cents by 4%. However, the bottom line increased 9.1% from the year-ago figure.
In the fourth quarter, total revenues of $263.7 million missed the Zacks Consensus Estimate of $279.7 million by 7.6%. The top line decreased 5.7% from a year ago. The downside was due to a 20.2% year-over-year fall in Commercial and Other revenues.
Adjusted EBITDA of $74.3 million grew 8.9% from a year ago, attributable to higher revenues in the Self-Storage and cost containment measures, more than offset by higher general and administrative expenses.
The adjusted EBITDA margin was 28.2%, up 380 basis points (bps) from the prior-year period’s levels owing to the positive impacts of commercial actions and product mix. Increased labor costs as the business scales for continued growth partly offset this.
Liquidity & Cash Flow
As of Dec 30, 2023, JBI had a cash balance of $171.7 million compared with $78.4 million at 2022 end. Net long-term debt totaled $607.7 million, marking a significant decline from the 2022-end level of $699.9 million.
In 2023-end, net cash provided by operating activities was $215 million, up from $88.5 million in the year-ago period.
2023 Highlights
The company’s revenues increased 4.6% from the year-ago level to $1,066.4 million.
Adjusted EBITDA of $285.6 million grew 25.9% from the year-ago level. Adjusted EBITDA margin improved 450 bps from the prior year to 26.8% in 2023
Earnings per share increased 26% from the previous year to 92 cents.
2024 Guidance
Revenues are projected to be in the range of $1.092 billion-$1.125 billion. This range indicates a 4% rise at the midpoint compared to 2023.
The adjusted EBITDA is anticipated to be in the range of $286 million-$310 million. This range signifies a midpoint growth of 4.3% compared to 2023.
Zacks Rank
Janus currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Construction Releases
Quanta Services Inc. PWR reported better-than-expected results in fourth-quarter 2023, with adjusted earnings and revenues surpassing the Zacks Consensus Estimate. Both metrics increased on a year-over-year basis.
The company continues to experience high demand for its infrastructure solutions that support energy transition initiatives and increase reliability, safety and efficiency. Project activity associated with renewable generation has been going strong and is expected to continue throughout the year.
Martin Marietta Materials, Inc. MLM reported mixed fourth-quarter 2023 results, with earnings surpassing the Zacks Consensus Estimate and increasing on a year-over-year basis. Revenues missed the consensus mark but rose year over year.
MLM anticipates strong demand for infrastructure, large-scale energy and domestic manufacturing projects. This will largely offset weaker residential demand and the anticipated softening in light non-residential activity. With mortgage rates stabilizing and affordability headwinds receding, MLM fully expects single-family residential construction to recover as demand still exceeds supply, particularly in its key markets.
Louisiana-Pacific Corporation LPX reported impressive fourth-quarter 2023 results. Earnings and net sales beat their respective Zacks Consensus Estimate.
On a year-over-year basis, LPX’s earnings increased on reduced costs and inflationary pressure despite lower net sales.
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