Building and construction materials manufacturer Owens Corning (NYSE:OC) will be announcing earnings results tomorrow before market open. Here’s what to look for.
Owens Corning met analysts’ revenue expectations last quarter, reporting revenues of $3.05 billion, up 22.9% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ adjusted operating income estimates.
Is Owens Corning a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Owens Corning’s revenue to grow 20% year on year to $2.76 billion, improving from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $2.91 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Owens Corning has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Owens Corning’s peers in the home construction materials segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Simpson delivered year-on-year revenue growth of 3.1%, beating analysts’ expectations by 4.3%, and Griffon reported a revenue decline of 1.7%, falling short of estimates by 0.8%. Simpson traded up 1.5% following the results while Griffon was also up 8.8%.
Read our full analysis of Simpson’s results here and Griffon’s results here.
Stocks generally had a good 2024. The Fed fought high inflation and won without sending the economy into a recession, otherwise lovingly known as a soft landing. The US Central Bank is now cutting rates. That, plus the election of Donald Trump in November 2024, sent markets even higher, and while some of the home construction materials stocks have shown solid performance, the group has generally underperformed, with share prices down 6.2% on average over the last month. Owens Corning is down 13.5% during the same time and is heading into earnings with an average analyst price target of $209.72 (compared to the current share price of $165.47).
Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.
