Janus International (JBI) Stock Up on Q2 Earnings & Revenue Beat
Janus International Group, Inc. JBI reported better-than-expected second-quarter 2023 results, with earnings and revenues surpassing the Zacks Consensus Estimate. The company’s earnings beat the consensus mark in five of the seven consecutive quarters and met on other two occasions. Meanwhile, the revenues were well above the mark in all the consecutive seven quarters.
The company’s quarterly performance was driven by customers' investments in various sectors, such as self-storage, commercial and industrial markets. Its extensive range of cutting-edge solutions and industry-leading products positions Janus as their preferred and trusted partner. Given these tailwinds, the company also raises its full-year 2023 revenue and adjusted EBITDA guidance.
Shares of this leading provider of cutting-edge access control technologies and building product solutions gained 6.8% during the trading session on Aug 10.
Janus International Group, Inc. Price, Consensus and EPS Surprise
Janus International Group, Inc. price-consensus-eps-surprise-chart | Janus International Group, Inc. Quote
Earnings & Revenue Discussion
In the quarter under review, Janus reported earnings per share of 25 cents, beating the Zacks Consensus Estimate of 20 cents by 25% and increasing 56.3% from the year-ago figure.
In the second quarter, total revenues of $270.6 million beat the Zacks Consensus Estimate of $264 million by 2.3%. The top line increased 9.2% from a year ago. The growth was driven by a remarkable 33.9% rise in New Construction and a noteworthy 7.6% increase in Restore, Rebuild & Replace ("R3") segments.
Adjusted EBITDA of $74.0 million grew 46% from a year ago, attributable to higher revenues primarily in the New Construction and R3 sales channels, partly offset by higher general and administrative expenses.
Adjusted EBITDA margin was 27.3%, an increase of 680 basis points from the prior-year period owing to more revenues from commercial actions taken in 2022 and product mix. This was partly offset by increased labor costs as the business scales for continued growth, including additional investments in cutting-edge Nok?? Smart Access Solutions.
2023 Guidance Raised
Revenues are now projected to be in the range of $1.07 billion-$1.09 billion, up from the previous estimate of $1.06 billion to $1.08 billion. This updated range indicates a 5.9% rise at the midpoint compared to 2022.
The adjusted EBITDA is now anticipated to be in the range of $269.5 million-$289.5 million, reflecting an upward revision from the previous estimate of $253 million to $278 million. This updated range signifies a midpoint growth of 23.2% compared to 2022.
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.
Some Recent Construction Releases
Quanta Services Inc. PWR reported mixed results for second-quarter 2023, wherein adjusted earnings missed the Zacks Consensus Estimate but revenues surpassed the same. Both metrics were up on a year-over-year basis.
Quanta 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.
KBR, Inc. KBR reported mixed second-quarter 2023 results, wherein earnings surpassed the Zacks Consensus Estimate but revenues missed the same. Earnings beat the consensus estimate for the seventh straight quarter. Revenues, on the other hand, surpassed the mark in three of the trailing seven quarters and missed on other four occasions.
Although KBR’s quarterly earnings were impacted by losses related to convertible notes and a legacy legal matter, the company delivered a strong quarter of financial performance and environmental, social and governance or ESG performance, underpinned by its mission focus and operational discipline.
Fluor Corporation FLR reported stellar results for second-quarter 2023, wherein earnings and revenues surpassed the respective Zacks Consensus Estimate and increased from the previous year, given solid demand for its engineering and construction solutions.
Given the strong underlying performance of the company’s non-legacy portfolio and large Energy Solutions projects, Fluor lifted its expectations for 2023.
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