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Home Construction Materials Stocks Q3 Highlights: Fortune Brands (NYSE:FBIN)

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Looking back on home construction materials stocks’ Q3 earnings, we examine this quarter’s best and worst performers, including Fortune Brands (NYSE: FBIN) 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 12 home construction materials stocks we track reported a slower Q3. As a group, revenues along with next quarter’s revenue guidance were in line with analysts’ consensus estimates.

In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.

Fortune Brands (NYSE: FBIN)

Targeting a wide customer base of residential and commercial customers, Fortune Brands (NYSE: FBIN) makes plumbing, security, and outdoor living products.

Fortune Brands reported revenues of $1.15 billion, flat year on year. This print fell short of analysts’ expectations by 2.7%. Overall, it was a softer quarter for the company with a significant miss of analysts’ revenue estimates and a significant miss of analysts’ EPS estimates.

Fortune Brands Total Revenue

Interestingly, the stock is up 13.2% since reporting and currently trades at $55.21.

Read our full report on Fortune Brands here, it’s free.

Best Q3: Quanex (NYSE: NX)

Starting in the seamless tube industry, Quanex (NYSE: NX) manufactures building products like window, door, kitchen, and bath cabinet components.

Quanex reported revenues of $489.8 million, flat year on year, outperforming analysts’ expectations by 4.4%. The business had an incredible quarter with a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.

Quanex Total Revenue

The market seems happy with the results as the stock is up 21.9% since reporting. It currently trades at $18.38.

Is now the time to buy Quanex? Access our full analysis of the earnings results here, it’s free.

Slowest Q3: 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 $394.6 million, down 12.8% year on year, falling short of analysts’ expectations by 2.4%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue estimates and a significant miss of analysts’ adjusted operating income estimates.

Interestingly, the stock is up 11.9% since the results and currently trades at $58.01.

Read our full analysis of American Woodmark’s results here.

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 $2.68 billion, down 2.9% year on year. This result missed analysts’ expectations by 0.5%. Overall, it was a slower quarter as it also produced revenue guidance for next quarter missing analysts’ expectations significantly and a significant miss of analysts’ adjusted operating income estimates.

The stock is down 1.5% since reporting and currently trades at $120.88.

Read our full, actionable report on Owens Corning here, it’s free.

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 $623.5 million, up 6.2% year on year. This print topped analysts’ expectations by 3.1%. More broadly, it was a satisfactory quarter as it also recorded an impressive beat of analysts’ revenue estimates but a miss of analysts’ EBITDA estimates.

The stock is flat since reporting and currently trades at $177.45.

Read our full, actionable report on Simpson here, it’s free.


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