Q1 Rundown: Masco (NYSE:MAS) Vs Other Home Construction Materials Stocks
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 satisfactory Q1. As a group, revenues were in line with analysts' consensus estimates.
While some home construction materials stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 1.4% since the latest earnings results.
Headquartered just outside of Detroit, MI, Masco (NYSE:MAS) designs and manufactures home-building products such as glass shower doors, decorative lighting, bathtubs, and faucets.
Masco reported revenues of $1.80 billion, down 6.5% year on year. This print fell short of analysts' expectations by 2%. Overall, it was a disappointing quarter for the company with a significant miss of analysts' adjusted operating income estimates.
'During the first quarter, we delivered solid adjusted operating profit margin of 16.0 percent and adjusted earnings per share of $0.87, and we returned $196 million to shareholders through dividends and share repurchases,' said Masco President and CEO, Keith Allman.
The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $61.79.
Read our full report on Masco here, it's free.
Aiming to build safer and stronger buildings, Simpson (NYSE:SSD) designs and manufactures structural connectors, anchors, and other construction products.
Simpson reported revenues of $538.9 million, up 1.6% year on year, outperforming analysts' expectations by 2%. The business had an exceptional quarter with a solid beat of analysts' EBITDA estimates and an impressive beat of analysts' EPS estimates.
The market seems content with the results as the stock is up 2.8% since reporting. It currently trades at $157.80.
Is now the time to buy Simpson? Access our full analysis of the earnings results here, it's free.
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 $1.03 billion, down 6.9% year on year, falling short of analysts' expectations by 2.8%. It was a softer quarter as it posted a miss of analysts' organic revenue estimates and a slight miss of analysts' EBITDA estimates.
As expected, the stock is down 2.4% since the results and currently trades at $51.44.
Read our full analysis of Fortune Brands's results here.
Founded in the 1960s as a general wood-making company, JELD-WEN (NYSE:JELD) manufactures doors, windows, and other related building products.
JELD-WEN reported revenues of $776 million, down 19.1% year on year. This number surpassed analysts' expectations by 0.8%. It was an exceptional quarter as it also recorded a solid beat of analysts' organic revenue estimates and an impressive beat of analysts' adjusted operating income estimates.
JELD-WEN had the slowest revenue growth among its peers. The stock is down 30.2% since reporting and currently trades at $3.91.
Read our full, actionable report on JELD-WEN here, it's free.
Initially in the defense industry, Griffon (NYSE:GFF) is a now diversified company specializing in home improvement, professional equipment, and building products.
Griffon reported revenues of $611.7 million, down 9.1% year on year. This result missed analysts' expectations by 1%. Taking a step back, it was still a strong quarter as it put up an impressive beat of analysts' EBITDA estimates and a solid beat of analysts' EPS estimates.
The stock is up 4.4% since reporting and currently trades at $70.73.
Read our full, actionable report on Griffon here, it's free.
Thanks to the Fed's series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump's presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.
Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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